RESTRICTED  
  
WT/TPR/S/373  
23 April 2018  
(18-2496) Page: 1/157 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
NORWAY  
This report, prepared for the seventh Trade 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 Jo hn Finn 
(Tel: 022/739 5081); Cato Adrian (Tel: 022/739 5469); or Denby Probst ( Tel: 0 22/739 5847).  
 
Document WT/TPR/G/373 contains the policy statement submitted by Norway.  
 
 
Note: This report is subject to restricted circulation and pr ess embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Norway. This report was drafted in 
English.  
  WT/TPR/S/373 • Norway  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Main Fea tures of the Economy  ................................ ................................ ..................... 11 
1.2   Recent Economic Developments  ................................ ................................ ................... 13 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 16 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 16 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 20 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  23 
2.1   General Framework  ................................ ................................ ................................ ....23 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 24 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 28 
2.3.2.1    European Economic Area (EEA)  ................................ ................................ ............... 28 
2.3.2.2    European Free Trade Association (EFTA)  ................................ ................................ ..30 
2.3.2.3    Bilateral FTAs  ................................ ................................ ................................ .......30 
2.3.2.4    Unilateral preferences  ................................ ................................ ............................ 31 
2.4   Investment Regime  ................................ ................................ ................................ ....32 
2.4.1    Framework agreements  ................................ ................................ ............................ 32 
2.4.2    Investment restrictions  ................................ ................................ ............................. 32 
2.4.3    Investment promotion and business environment  ................................ ........................ 33 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  36 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 36 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 36 
3.1.1.1    Trade facilitation  ................................ ................................ ................................ ...38 
3.1.1.2    Customs valuation  ................................ ................................ ................................ 39 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 40 
3.1.2.1    Non-preferential  ................................ ................................ ................................ ...41 
3.1.2.2    Preferential  ................................ ................................ ................................ .......... 42 
3.1.2. 3   Notification  ................................ ................................ ................................ .......... 43 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 43 
3.1.3.1    Nomenclature  ................................ ................................ ................................ .......43 
3.1.3.2    Bound rates  ................................ ................................ ................................ ......... 44 
3.1.3.3    Applied rates  ................................ ................................ ................................ ........ 45 
3.1.3.4   Tariff quotas (TQs)  ................................ ................................ ................................ 47 
3.1.3.5    Duty reductions or suspensions  ................................ ................................ .............. 52 
3.1.3.6    Preferential tariffs  ................................ ................................ ................................ .53 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 54 
3.1.4.1    VAT ................................ ................................ ................................ ..................... 55 WT/TPR/S/373 • Norway  
 
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  3.1.4.2    Excise duties  ................................ ................................ ................................ ........ 57 
3.1.4.3    Agricultural research levy  ................................ ................................ ....................... 59 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 60 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 63 
3.1.7    Other measures affecting imports  ................................ ................................ .............. 64 
3.1.7.1    Sanctions  ................................ ................................ ................................ ............. 64 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 64 
3.2.1    Customs procedures and requirements  ................................ ................................ .......64 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 65 
3.2.3    Export prohibitions, restric tions, and licensing  ................................ ............................. 65 
3.2.3.1    Export control of defence and related products  ................................ ......................... 67 
3.2.4    Export support and promotion  ................................ ................................ ................... 68 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..69 
3.2.5.1    Export credit guarantees  ................................ ................................ ........................ 69 
3.2.5.2    Short -term export -credit insurance  ................................ ................................ ......... 70 
3.2.5.3    Export credits  ................................ ................................ ................................ .......71 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......72 
3.3.1    Incentives  ................................ ................................ ................................ ............... 72 
3.3.2    Standards and other technical requirements  ................................ ............................... 75 
3.3.2.1    Technical regulations  ................................ ................................ ............................. 76 
3.3.2.2    Standards  ................................ ................................ ................................ ............ 77 
3.3.2.3    WTO and technical barriers to trade  ................................ ................................ ........ 79 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....79 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 82 
3.3.4.1    Competition policy  ................................ ................................ ................................ 82 
3.3.4.2    Price controls ................................ ................................ ................................ ........ 85 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ ............. 86 
3.3.6    Government procurement  ................................ ................................ ......................... 90 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 95 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ ...................  101  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  101 
4.1.1    Agriculture  ................................ ................................ ................................ ............  101 
4.1.1.1    Main features  ................................ ................................ ................................ ..... 101 
4.1.1.2    Policy framework  ................................ ................................ ................................  103 
4.1.1.3    Border measures  ................................ ................................ ................................  106 
4.1.1.4    Domestic support levels  ................................ ................................ .......................  108 
4.1.1.4.1    WTO notifications  ................................ ................................ .............................  108 
4.1.1.4.2    OECD monitoring and evaluation of agricultural policies  ................................ ........  109 
4.1.2    Forestry  ................................ ................................ ................................ ................  111 
4.1.2.1    Structure and trade  ................................ ................................ .............................  112 WT/TPR/S/373 • Norway  
 
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  4.1.2.2    Policy and developments  ................................ ................................ ......................  113 
4.1.2.3    Biofuels and policy  ................................ ................................ ..............................  115 
4.1.2.4    Legal framework  ................................ ................................ ................................ . 116 
4.1.2.5   Funding, support, and subsidies  ................................ ................................ ............  118 
4.1.2.6    International cooperation  ................................ ................................ .....................  120 
4.1.3    Fisheries  ................................ ................................ ................................ ...............  121 
4.1.3.1    Overview  ................................ ................................ ................................ ...........  121 
4.1.3.2    Production and trade  ................................ ................................ ...........................  123 
4.1.3.3    Fisheries and aquaculture  policies  ................................ ................................ .........  125 
4.1.3.4    Legal  framework  ................................ ................................ ................................ . 125 
4.1.3.5    Fisheries and aquaculture  management  ................................ ................................ . 127 
4.1.3.6    Support schemes  ................................ ................................ ................................  128 
4.1.3.7    International and bilateral agreements  ................................ ................................ .. 129 
4.2   Mining and Energy  ................................ ................................ ................................ .... 130 
4.2.1    Hydrocarbons  ................................ ................................ ................................ ........  130 
4.2.2    Electricity  ................................ ................................ ................................ .............  133 
4.3   Services  ................................ ................................ ................................ ..................  136 
4.3.1    Financial services  ................................ ................................ ................................ ... 136 
4.3.1.1    Banking and finance  ................................ ................................ ............................  137 
4.3.1.2    Insurance and pensions  ................................ ................................ .......................  143 
4.3.1.3    Securities  ................................ ................................ ................................ ...........  145 
4.3.1.4    Other financial services  ................................ ................................ ........................  146 
4.3.2    Distribution services  ................................ ................................ ...............................  149 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 151  
 
CHARTS  
 
Chart 1.1 Commodity Price Index for crude oil, 1995 -2017 (1995 Jan=100)  .............................. 13 
Chart 1.2 Key Policy Rate vs 3 -month NIBOR, 2005 -17 ................................ .......................... 14 
Chart 1.3 Composition of merchandise trade, 2012 and 2017  ................................ .................. 17 
Chart 1.4 Direction of merchandise trade, 20 12 and 2017  ................................ ....................... 18 
Chart 1.5 Investment in Norway  ................................ ................................ .......................... 21 
Chart 1.6 Net foreign direct investment in Norway, 2005 -16 ................................ ................... 21 
Chart 3.1 MFN applied tariff averages by WTO product groups, 2018  ................................ ........ 47 
Chart 4.1 Market regulation for agricultural products  ................................ ............................  105 
Chart 4.2 Domestic support notific ations, 2006 -16 ................................ ...............................  109 
Chart 4.3 OECD estimates of support to agriculture, 2005 -16 ................................ ................  111 
Chart 4.4 Fisheries productiona, 2012 and 2016  ................................ ................................ ... 124 
Chart 4.5 Norway's petroleum production, 1971 -2017 ................................ ..........................  131 
Chart 4.6 Norway's energy balance, 2016  ................................ ................................ ...........  133 
Chart 4.7 Norway's hydropower resources  ................................ ................................ ..........  135 WT/TPR/S/373 • Norway  
 
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  Chart 4.8 Borrowers from Norwegian banks and covered bond mortgage companies in 
Norway, 2016  ................................ ................................ ................................ ..................  138 
Chart 4.9 Loan market shares of banks in Norway at the end of 2016 ................................ ..... 139 
Chart 4.10 Core equity in Norwegian banks relative to regulatory requirements, 
1996-2018, and core equity in individual banks (risk -weighted), 2014 -16 ...............................  141 
Chart 4.11 Cash as a share of means of payment (M1) in selected countries, 2015  ..................  147 
Chart 4.12 Economic costs of different payment options, 2007 and 2013  ................................  148 
Chart 4.13 Retail trade in Norway, 2016  ................................ ................................ .............  150 
 
TABLES  
 
Table 1.1 Basic economic indicators, 2012 -17 ................................ ................................ ........ 11 
Table 1.2 Selected macroeconomic indicators, 2012 -17 ................................ .......................... 15 
Table 1.3 Balance of payments, 2012 -16 ................................ ................................ .............. 16 
Table 1.4 Trade in services for non -financial enterprises by industry, 2012 -16a.......................... 19 
Table 1.5 Trade in services by geographical breakdown, 2016  ................................ ................. 20 
Table 1.6 Foreign direct investment stock by industry, 2013 -16 ................................ ............... 22 
Table 2.1 Investment restrictions, 2018  ................................ ................................ ................ 33 
Table 3.1 Customs statistics, 2012 -17 ................................ ................................ .................. 37 
Table 3.2 Norway's bound tariff summary, 2018  ................................ ................................ ....44 
Table 3.3 Tariff structure of Norway, 2012 and 2018  ................................ .............................. 46 
Table 3.4 Norway's applied MFN tariff summary, 2018  ................................ ............................ 46 
Table 3.5 MFN tariff quotas, 2015 and 2016  ................................ ................................ .......... 48 
Table 3.6 Preferential tariff quotas, 2015 and 2016  ................................ ................................ 50 
Table 3.7 Overview of use of tariff reductions, 2012 -17 ................................ .......................... 52 
Table 3.8 Tariffs under preferential agreement s, 2018  ................................ ............................ 54 
Table 3.9 VAT rates and exemptions, 2018  ................................ ................................ ........... 56 
Table 3.10 Products subject to excise duties and rates, 2018  ................................ .................. 57 
Table 3.11 Agricultural research levy, products and rates, 2016 -18 ................................ .......... 60 
Table 3.12 Import restrictions, prohibitions or licensing requirements, 2018  .............................. 61 
Table 3.13 T ax rate on fish and fish products, 2016 -17 ................................ ........................... 65 
Table 3.14 Export prohibitions and restrictions, 2017  ................................ ............................. 66 
Table 3.15 Export control of defence materials, 2012 -16 ................................ ......................... 68 
Table 3.16 GIEK, key figures, 2012 -16 ................................ ................................ ................. 70 
Table 3.17 Export Credit Norway, key figures, 2013 -16 ................................ .......................... 72 
Table 3.18 State aid granted by Norway, 2012 -15 ................................ ................................ .74 
Table 3.19 Industry -wide and selected sector -specific support programmes, 2015 and 
2016  ................................ ................................ ................................ ............................... 74 
Table 3.20 Competition cases at the Norwegian Competition Authority  ................................ .....85 
Table 3.21 State -owned enterprises, December 2016  ................................ ............................. 87 
Table 3.22 Public Procurement, 2011 -16 ................................ ................................ ............... 91 
Table 3.23 Public procurement thresholds in 2017  ................................ ................................ .92 WT/TPR/S/373 • Norway  
 
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  Table 3.24 Public procurement procedures according to Regulation on Public Procurement 
No. 974 of 2016  ................................ ................................ ................................ ................. 93 
Table 3.25 Norway GPA thresholds, effective from 15 June 2014  ................................ ............. 94 
Table 3.26 EU procurement and GPA key figures, 2010 -12 ................................ ...................... 94 
Table 3.27 Overview of IPR protection provided by Norway's leg islation, 2017  ........................... 95 
Table 3.28 Norway: Information regarding trademarks, industrial designs, and patents, 
2013-16 ................................ ................................ ................................ ........................... 97 
Table 4.1 Production income in agriculture, 1989, 2010, and 2016  ................................ .........  101 
Table 4.2 Key indicators on selected domestic production, average 2012 -13 ...........................  102 
Table 4.3 Main elements of agricultural agreements, 2013 -17 ................................ ...............  104 
Table 4.4 Market balancing options  ................................ ................................ ....................  105 
Table 4.5 OECD indicators for support to agriculture in Norway, 2009 -16 ................................  110 
Table 4.6 Key forestry statistics, 2012 -17 ................................ ................................ ...........  112 
Table 4.7 Exports of forestry products, 2012 -17 ................................ ................................ .. 113 
Table 4.8 Main forestry laws and regulations, 2017  ................................ ..............................  117 
Table 4.9 Overview of support to the sector, 2012 -17 ................................ ..........................  119 
Table 4.10 Key statistics on fisheries and aquaculture, 2012 -17................................ .............  122 
Table 4.11 Norway's exports of fish, 2012 -17 ................................ ................................ ...... 123 
Table 4.12 Main laws and regulations, fisher ies and aquaculture, 2017  ................................ ... 126 
Table 4.13 Support schemes specific to fishing and aquaculture, 2017  ................................ .... 128 
Table 4.14 Overview of Norway's international agreements in fisheries, 2017  ..........................  129 
Table 4.15 Norway's largest banking groups  ................................ ................................ ........  139 
 
BOXES  
 
Box 1.1 The Government Pension Fund – Global (GPFG)  ................................ ......................... 14 
Box 2.1 Norway's five key areas of trade policy  ................................ ................................ .....25 
Box 3.1 Outline of the main elements in the amended Customs Regulations on preferential 
and non -preferential rules of origin  ................................ ................................ ...................... 40 
Box 4.1 Fisheries and aquaculture institutions and authorities, 2018  ................................ ...... 123 
Box 4.2 Licensing in the Norwegian petroleum sector  ................................ ...........................  132 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by group of products, 2012 -16 ................................ .............  151 
Table A1.2 Merchandise imports by group of products, 2012 -16 ................................ ............  152 
Table A1.3 Merchandise exports by destination, 2012 -16 ................................ ......................  153 
Table A1.4 Merchandise imports by origin, 2012 -16 ................................ .............................  154 
Table A3.1 EFTA Surveillance Authority - State aid register, 2016 -17 ................................ ..... 155 
 
  WT/TPR/S/373 • Norway  
 
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  SUMMARY  
1. Norway has an advanced economy with a per capita GDP among the highest in the world at 
NKr 621,400 (US$ 75,200) in 2017. Trade is important to the economy, with imports and exports 
of goods and services equivalent to 63% of GDP in 2017. Although the value of exports declined in 
U.S. dollar terms from US$ 161 billion (in 2012) to US$ 102 billion (in 2017), this reflected the fall 
in oil and gas prices rather than a change in volume exported. The fall in petroleum prices also led 
to a decline in that sector's contribution to GDP, from nearly a quarter of GDP in 2012 to less than 
16% in 2017, while the contribution from services increased from 58% to 64%.  
2. Over the years, Norway has accumulated substantial amounts of petroleum revenue in a 
sovereign wealth fund (the Government Pension Fund – Global). The Fund, which is invested 
entirely outside of No rway, held assets valued at more than US$ 1 trillion at the end of 2017. The 
size of the Fund provides the authorities with some leeway to mitigate economic downturns and 
counter external shocks. The effects of the global financial crisis of 2008 -09 were t hus short -lived 
in Norway, and the economy returned quickly to its historical growth path, reaching 2.7% growth 
in GDP in 2012. However, the significant decline in the prices of oil and gas since mid -2014 posed 
a much more serious challenge than the earlie r global downturn. The contraction in offshore -
related industries and supply services affected local communities in the form of rising 
unemployment and declining incomes. However, a combination of expansionary fiscal and 
monetary policies contained the eff ect on the national economy as growth in GDP continued but at 
a modest 1% in 2016. In addition, a marked depreciation of the Norwegian krone helped to 
restore the competitiveness of Norwegian businesses – a competiveness regularly eroded in times 
of high o il prices. Signs of economic recovery grew stronger during 2017 when real growth in GDP 
was 1.8%, and the current outlook for the Norwegian economy is positive.  
3. Despite the recent challenges, Norway has remained an open economy and there have been 
no funda mental changes in its trade policies since the last Trade Policy Review in 2012. The 
policies are firmly anchored in the European Economic Area (EEA) Agreement vis-à-vis the 
European Union; Norway's membership in the European Free Trade Association (EFTA),  providing 
an extensive network of free trade agreements with partners around the world; and Norway's 
active participation in the WTO.  
4. Since 2012, Norway has  accepted the Trade Facilitation Agreement, implemented the 
revised ITA and pharmaceutical product  coverage, completed procedures for adopting the revised 
GPA, and committed to phasing out all remaining agricultural export subsidies. It has an 
exemplary record in terms of meeting its notification obligations . It has been a third party in 82 
dispute set tlement cases, has never been a respondent, and was a complainant four times, most 
recently in the EC – Seal Products case (DS401) with the report of the Appellate Body circulated in 
May 2014 . 
5. As a member of the EEA, along with Iceland, Liechtenstein and t he EU member States, 
Norway is (with the exception of agriculture and fisheries) part of a single market with free 
movement of goods, services, persons, and capital, as well as non -discrimination and equal rules 
of competition  along with cooperation in man y other areas. Relevant EU legal acts are incorporated 
into the EEA Agreement through consensus decisions of the EEA Joint Committee which is made up 
of representatives of the EEA EFTA states and the European Union. The  transposition into national 
legislat ion and application of these amendments to the EEA Agreement are subject to the 
oversight of the EFTA Surveillance Authority and the EFTA Court .  
6. With few exceptions, Norway does not have any legislation restricting investment from 
outside the EEA, while investment from within the EEA is part of the free movement of capital. 
There are provisions in various sectoral laws that have an impact on foreig n direct investment and 
a relatively small number of bilateral investment agreements that have been in place for many 
years. A new investment promotion entity, Invest in Norway, was established in 2013 to 
coordinate the Government's efforts to attract fore ign investment.  
7. Although Norway's investment regime is  generally  open and liberal , state ownership remains 
substantial  with about 11% of the total workforce  (281,000 employees) in enterprises wholly or 
partly owned by the State  in 2016 . At the same time, the market value of the State's holdings  in 
listed companies totalled NKr 715 billion. The State is also a major owner of unlisted enterprises. WT/TPR/S/373 • Norway  
 
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  In recent years, the Government has been reluctant to extend state ownership through 
acquisitions , and signalled a willingness to reduce the degree of state ownership with time. 
Parliament has approved the divestment of some enterprises in principle, but these authorizations 
will only be carried out when commercially opportune. Nevertheless, n ew state  owned enterprises 
have been created to speed up the construction of motorways and major highways and as part of 
ongoing reforms in the railway sector.  
8. The vast majority of tariffs (85% of tariff lines) are duty  free but those that remain can be 
high, with tariffs of over 100% not unusual in many agriculture sub -sectors. Non -ad valorem rates 
of duty are also prevalent, accounting for about 50% of agricultural tariff lines. The simple average 
tariff rate (including AVEs of non -ad valorem  tariffs) decreased sl ightly from 7.5% to 6.9% during 
the review period  (compared to an average bound rate of 30.4%) , mainly due to the autonomous 
liberalization of 114 agricultural tariff lines.  Under Norway's preferential schemes, least developed 
countries are granted duty an d quota free access for all goods, while other arrangements maintain 
significant tariffs on some agricultural goods.  
9. Consumption taxes in Norway are quite high. The standard rate of VAT is 25%, although 
reduced rates apply to some products and services, su ch as food (15%) and transport (12%), 
while exports are zero rated and some services are exempt. Excise taxes are applied as specific 
duties on some products including beverages, tobacco, sugar and some products containing sugar, 
electrical power, fuel for  road vehicles, cars, and air passengers. These excise duties are regularly 
revised to account for inflation. Exceptionally, the duty on chocolate and sugar products was 
increased by 83% in January 2018. Consumption and excise taxes are applied equally to imported 
and domestically produced goods.  
10. Norway's import prohibitions, restrictions, and licensing have remained largely unchanged 
during the review period, although new measures have been put in place through new regulations 
on preventing the introductio n and spread of foreign organisms, and new CITES regulations are 
being developed to broaden the scope and extend certain provisions beyond CITES.  
11. Norway has not resorted to any contingency measures since the creation of the WTO. 
Furthermore, while the Cust oms Act contains provisions for anti -dumping, countervailing, and 
safeguard measures, there are no detailed regulations giving effect to these provisions, or 
designated institutions to apply them.  
12. A number of government entities are involved in the provis ion of export finance, guarantees, 
and credits. A new export credit facility, Export Credit Norway (Eksportkreditt Norge), was 
established in July 2012 for all new officially -supported export loans. As a result, the traditional 
export financing agency, Eks portfinans ASA, is being phased out. Norway's Export Credit 
Guarantee Agency (GIEK) continues to issue guarantees on behalf of the Government and has 
developed in recent years a number of new products such as a new buyer credit guarantee for 
export -related  investments and a new ship guarantee scheme.  
13. Technical requirements and SPS measures are, to a large extent, within the EEA, and 
Norway's measures are, in most cases, identical to those that apply throughout the single market. 
The principal changes implem ented since 2012 related to national alignment with EU legislation, 
including implementation of EU regulations relating to novel foods, pesticide residues, and the 
official control of some pollutants in foodstuffs.  
14. Much of the EU acquis  on intellectual pr operty is considered to be of EEA relevance and has 
been included in the EEA Agreement and incorporated into national legislation in Norway, including 
the European Union's Trade Marks Directive, the European Designs Directive, the Patents Directive 
(Direct ive on the legal protection of biotechnological inventions), as well as the EU Regulations on 
supplementary protection certificates for pharmaceuticals and plant protection products . Norway is 
a party to the European Patent Convention  and thus a member of the European Patent 
Organization. Although t he EEA countries are not covered by the trade mark and community 
design schemes of the European Union, Norway adopted a new Trademarks Act in 2010, inter alia , 
to codify the principle of EEA regional exhaustion. EEA regional exhaustion is applicable to 
copyright, trademarks, patents, industrial designs, layout designs (topographies) of integrated 
circuits, and plant breeder's rights. On 1 July 2013 , the amended law on industrial property rights WT/TPR/S/373 • Norway  
 
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  entered into force  which includes new provisions on damages, corrective measures, and enhanced 
criminal sanctions.  
15. There have been no major changes in levels and means of support to the agricultural sector 
in the period under review. However, measures regulating the producti on of milk and poultry have 
become somewhat more flexible. The import regime for agricultural products is closely linked to 
the domestic market regulation for key commodities produced in Norway. High applied tariffs, 
frequently over 100%  for live animals, meat, dairy products, and cereals, leav e market access to 
be regulated through tariff quotas and administrative tariff reductions for many items. Border 
protection was increased by switching from specific to ad valorem  import duties for liquid milk and 
cream in 2010 and, again, for certain hard cheeses, beef (steaks and fillets), and lamb meat in 
2013. The current Government has stated that it has no plans to make further changes in the 
specific/ ad valorem  tariff structure, taking due account of the interes ts of Norwegian consumers 
and Norway's trading partners. Consistent with the Nairobi Package adopted at the WTO Ministerial 
Conference in December 2015, Norway has legislated for the eliminat ion of agricultural export 
subsidies by the end of 2020. Although volumes have been declining, cheese exports still absorb 
about 8% of the raw milk produced in Norway.  
16. The fisheries sector accounted for 12% of exports in 2016. During the review period, 
aquacultu re growth was stronger than that of wild catch, in particular for salmon production, which 
accounted for 78% of production and 68% of exports in 2016. The increase in the value of 
production of salmon was principally due to higher prices rather than increa sed volumes. 
Government policy has focused on the aquaculture sector, particularly management, to regulate 
growth and incorporate environmental issues when issuing new production licenses. Norway has 
been actively engaged in the WTO negotiations to prohibi t fisheries subsidies, and also had a key 
role in the conclusion of the Agreement on Port State Measures to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing under the Food and Agriculture Organization.  
17. The forestry sector continues to contribute to the economy, employment and trade, with 
increasing output in recent years. A number of policies have improved the sustainable harvesting 
of Norway's forests, including climate policy measures that have provided incentives for increasing 
carbon stocks and forest densification. Even though there has been a general growth in the sector, 
a number of structural changes occurred during the period, which have meant a shift from Norway 
being a net exporter of logs to being a net importer as a resul t of the decline in the downstream 
industry, mainly the pulp and paper sector.  
18. In the area of services, which represents over two thirds of GDP, public administration and 
other services provided exclusively or predominantly by the public sector, account fo r over half of 
the value added from services. Real estate activities, financial and insurance activities, and 
wholesale and retail trade, account for most of the remainder.  
19. Norway's legal framework for financial institutions was updated and consolidated wi th the 
passage of the Financial Institutions Act (2015) and a consolidated regulation to accompany it in 
2016. The new legislation does not fundamentally alter the conditions under which financial 
institutions operate in Norway. It maintained the stricter capital adequacy requirements for banks 
and credit institutions adopted in 2013, and introduced new capital adequacy requirements for 
insurance companies consistent with the EU Solvency II Directive. Since 2016, Norway's financial 
supervisory authorities h ave been participating in the European Banking Authority, the European 
Securities and Markets Authority, and the European Insurance and Occupational Pensions 
Authority in the same manner as the authorities of EU member States, but without voting rights. 
Work is proceeding to incorporate a backlog of some 300 EU directives and regulations in the 
financial markets area into the EEA Agreement. However, in most cases, Norway has not waited 
for the formal decision of the EEA Committee, but has adopted national l egislation that mirrors the 
substance of new EU requirements.  
20. Norway is the world's third largest exporter of natural gas and continues to be a major 
producer and exporter of crude oil. Although offshore discoveries generally require significant 
investment s up-front, and profitability is therefore sensitive to future changes in petroleum prices, 
cost reductions since 2014 have lowered the break -even levels significantly for key ongoing 
projects. Norway's domestic energy market is characterized by a high sha re of renewable energy 
delivered to power -intensive industries, households, and other users in the form of hydro based 
electricity. A ban on the use of mineral oils in the heating of buildings, including residential homes, WT/TPR/S/373 • Norway  
 
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  will come into effect on 1 Januar y 2020. Policies encourage the use of electric motor vehicles, and 
pilot projects focus on the use of electricity in public transport, including coastal traffic. A state 
enterprise (Enova), financed by budget transfers and a tax on electricity, provides in vestment 
support and advisory services for energy efficiency and energy transition activities. Norway has 
adopted the same 2030 targets as EU countries for increased energy efficiency and reductions in 
greenhouse gas emissions. However, Norway's 2020 targe t for renewables is much higher 
(67.5%), a reflection of Norway's differing point of departure. The target was exceeded in 2014.  
21. Due to the large sovereign wealth fund and conservative prudential regulation of the 
financial sector, Norway weathered the glo bal financial crisis that started in 2008 and, for Norway, 
the greater challenge of the decline in oil and gas prices in 2014. The growing recovery in 2017 
was also helped by the decline in the Norwegian krone relative to Norway's major trading partners. 
In addition, membership of the EEA has been a stabilizing factor in a challenging environment, 
while the single market for goods and services, with uniform regulatory requirements, gives 
Norway access to the EU market. Furthermore, with the notable exceptio n of agriculture, Norway 
gives duty free access to imports of practically all goods from all trading partners, and similar 
liberal treatment extends to services and investment.  
 WT/TPR/S/373 • Norway  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Norway's population reached 5.3 million in early 2018. Although net migration may vary from 
one year to another, migration is currently a more important vector in population growth than the 
rise in the indigenous resident population.1 A slowly but steadily aging population is expected to 
expand the future need for social services and increase the disbursement of pension benefits.  
1.2.  Norway owes a substantial share of its wealth to an abundance of natural r esources. 
Industrialization took off in the early twentieth  century with the tapping of hydropower resources, 
and development of  important metal, chemical, and paper/paperboard industries. The discovery of 
large offshore deposits of petroleum in the late 1 960s and onwards transformed Norway into a 
prominent world exporter of oil and natural gas. The production of crude oil peaked in 2001, 
followed by a decline that  levelled off in 2013. The production of natural gas roughly equals that of 
crude oil in oil -equivalent terms. Economically viable discoveries of petroleum are still being made, 
and large areas of the continental shelf remain unexplored.  
1.3.  The significant decline in the price of crude oil since mid -2014 has affected Norway's 
economy negatively, part icularly in the maritime supply and engineering industries linked to the 
offshore sector. Meanwhile, a simultaneous decline in the value of the Norwegian krone has 
increased profit margins in export -oriented activities such as fish farming and tourism. Nor way's 
GDP per capita, NKr 621,000 (US$75,000) in 2017 (Table 1.1), remains among the highest in the 
world. In terms of price -adjusted GDP per capita, Norway now ranks fourth in Europe (after 
Luxemb ourg, Ireland, and Switzerland).  
Table 1.1 Basic economic indicators, 2012 -17  
  2012  2013  2014  2015  2016a  2017a 
GDP at current market prices (NKr billion)  2,968  3,076  3,147  3,118  3,117  3,279  
GDP Mainland Norway at current market 
prices (NKr billion)  2,298  2,423  2,540  2,621  2,717  2,804  
Nominal GDP (US$ billion)  510 523 499 386 371 397 
Nominal GDP Mainland Norway (US$  billion)  395 412 403 325 324 339 
Real GDP at constant 2005 prices 
(%age  change)  2.7 1.0 2.0 2.0 1.1 1.8 
Real GDP Mainland Norway at constant 2005  
prices (%age change)  3.7 2.3 2.2 1.4 1.0 1.8 
Nominal GDP per capita (NKr per capita)  591,455  605,408  612,498  600,728  595,291  621,367  
Nominal GDP per capita (US$)  101,607  103,017  97,193  74,404  70,879  75,199  
Unemployment rate (%)b 3.2 3.5 3.5 4.4 4.7 4.2 
Value added by industry at basic prices 
(% of total value added)        
Agriculture, forestry and fishing  1.3 1.5 1.6 1.7 2.4 2.3 
Mining and quarrying  25.3 24.0 21.9 18.1 14.5 15.8 
Manufacture, of which:  7.4 7.4 7.6 7.7 7.6 7.6 
Food products, beverages and tobacco 
products  1.3 1.3 1.4 1.5 1.6 1.6 
Textiles, wearing apparel and leather 
products  0.1 0.1 0.1 0.1 0.1 0.1 
Wood and paper products, and printing  0.6 0.5 0.5 0.5 0.5 0.5 
Refined petroleum, chemical and 
pharmaceutical products  0.7 0.7 0.7 0.9 1.1 1.3 
Rubber and plastic products, and other non -
metallic mineral products  0.5 0.5 0.5 0.5 0.5 0.5 
Electricity, gas, steam and air -conditioning 
supply  2.0 2.1 2.0 1.9 2.3 2.3 
Water supply  0.6 0.6 0.6 0.7 0.7 0.7 
Construction  5.7 5.8 6.0 6.3 6.9 7.0 
                                                
1 About one sixth of Norway's current population are immigrants or children of first generation 
immigrants.  WT/TPR/S/373 • Norway  
 
- 12 - 
 
    2012  2013  2014  2015  2016a  2017a 
Services, of which:  57.7 58.8 60.4 63.5 65.6 64.4 
Wholesale and retail trade, repair of motor 
vehicles and motorcycles  7.3 7.0 7.4 7.8 7.8 7.6 
Real estate activities  6.7 6.8 7.0 7.6 7.9 7.7 
Public administration and defence  5.8 5.8 6.0 6.5 6.8 6.7 
Social work activities  5.4 5.6 5.7 6.0 6.3 6.2 
Transport and storage  5.2 5.5 5.5 5.7 5.6 5.2 
Education  4.7 4.8 4.9 5.2 5.4 5.4 
Financial and insurance activities  4.4 4.8 4.9 5.0 5.3 5.2 
Human health activities  4.3 4.4 4.6 5.1 5.3 5.2 
Administrative and support service activities  2.7 2.7 2.7 2.7 2.6 2.6 
Computer programming, consultancy and 
related activities  1.6 1.7 1.7 1.8 1.9 1.9 
Accommodation and food service activities  1.3 1.3 1.3 1.4 1.5 1.5 
Publishing, audio visual and broadcasting 
activities  1.1 1.1 1.1 1.2 1.2 1.2 
Telecommunications  1.1 1.0 1.1 1.1 1.1 1.1 
Employment (% of total full time 
equivalent employment)        
Agriculture and forestry  1.9 1.9 1.8 1.8 1.8 1.7 
Fishing and aquaculture  0.6 0.6 0.6 0.6 0.7 0.7 
Mining and quarrying  0.2 0.2 0.2 0.2 0.2 0.2 
Oil and gas extraction including services  2.5 2.6 2.6 2.4 2.1 2.0 
Manufacturing, of which:  9.8 9.8 9.7 9.4 8.9 8.6 
Machinery and other equipment n.e.c.  2.7 2.8 2.8 2.7 2.4 2.3 
Food products, beverages and tobacco  2.0 2.0 2.0 1.9 2.0 1.9 
Building of ships, oil platforms and modul es 
and other transport equipment  1.2 1.2 1.2 1.0 0.8 0.8 
Repair and installation of machinery and 
equipment  0.8 0.8 0.8 0.8 0.8 0.8 
Rubber, plastic and mineral products  0.6 0.6 0.6 0.6 0.6 0.6 
Manufacture of wood and wood products, 
except furniture  0.6 0.6 0.5 0.5 0.5 0.5 
Refined petroleum, chemical and 
pharmaceutical products  0.5 0.5 0.5 0.5 0.5 0.5 
Electricity, gas and steam  0.5 0.5 0.5 0.5 0.5 0.5 
Water supply, sewerage, waste  0.6 0.6 0.6 0.6 0.6 0.6 
Construction  8.1 8.3 8.4 8.6 8.8 9.1 
Services, of which:  75.7 75.5 75.5 75.9 76.4 76.5 
Health and social work  18.6 18.8 18.8 19.0 19.3 19.4 
Wholesale and retail trade, repair of motor 
vehicles  12.6 12.5 12.3 12.4 12.3 12.2 
Education  7.6 7.6 7.6 7.7 7.8 7.9 
Public administration and defence  7.5 7.4 7.4 7.6 7.7 7.7 
Professional, scientific and technical activities  4.9 4.9 4.9 5.0 4.8 4.9 
Administrative and support service activities  4.9 4.8 4.8 4.7 4.6 4.8 
Transport activities excl. ocean transport  4.7 4.7 4.7 4.7 4.7 4.6 
Information and communication  3.6 3.6 3.6 3.7 3.6 3.6 
Arts, entertainment and other service 
activities  3.5 3.4 3.4 3.4 3.5 3.6 
Accommodation and food service activities  2.8 2.8 2.9 3.0 3.0 3.1 
Financial and insurance activities  2.0 2.0 1.9 1.9 1.9 1.8 
Ocean transport  1.5 1.4 1.4 1.5 1.4 1.4 
a Figures from 2016 onwards are preliminary.  
b Simple average of 12 -month period, based on seasonally adjusted figures (age 15 -74). 
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . WT/TPR/S/373 • Norway  
 
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  1.2  Recent Economic Developments  
1.4.  The impact of the global financial crisis of 2008 -2009 was brief in Norway. The monetary 
policy, which had been tightened during 2007 and 2008, was quickly relaxed. Norges Bank (the 
Central Bank) cut its Key Policy Rate from 5.75% to 1.25% over a period of  nine months, and the 
resulting decline in market interest rates provided a major stimulus to the economy. In addition, 
the steady accumulation of petroleum revenues for more than ten years in the Government 
Pension Fund – Global (GPFG) afforded the Govern ment substantial leeway to expand public 
expenditures to boost growth and employment. The reigning -in of the fiscal stimulus began in 
2011.  
1.5.  Mainland GDP grew by 3.7% in 2012, which was well above the historical trend. Norway's 
GDP expanded much more slowl y in 2013, mainly because of lower production of oil and gas. The 
rebound in petroleum prices after the steep, but brief, decline during 2008 -2009 nevertheless 
underpinned investments in the petroleum sector, which jumped by 19% in 2013. A depreciation 
of the Norwegian krone began  in 2013, reflecting a shift in perceptions about future interest -rate 
differentials between Norway and other countries. The depreciation accelerated in the second half 
of 2014, as oil prices weakened from an average of US$110 per barrel over the period January 
2011-July 2014 to a (temporary) low of US$45 per barrel in January 2015 (Chart 1.1).  
Chart 1.1 Commodity Price Index for crude oil, 1995 -2017 (1995 Jan=100)  
 
Source:  IMF Primary Commodity Prices. Viewed at: http://www.imf.org/external/np/res/commod/index.aspx . 
1.6.  Public finances in Norway are shielded, at least in the short term, from falling petroleum 
prices through the construction of the GPFG as described in Box 1.1. The new Government, in 
office since October 2013, was therefore able to pursue a policy of simultaneous tax cuts and 
higher expenditures, including on infrastructure (Table 1.2). In a glob al environment of low 
inflation, Norges Bank, which was guided by a long -term inflation target of 2.5% per annum, also 
found room to loosen its monetary policy.2 A reduction of 0.25% in the key policy rate, which had 
remained unchanged at 1.5% since early 2012, took place in December 2014. Successive cuts in 
the key policy rate during 2015 and early 2016 brought it down to a record low of 0.5% in 
March  2016. The rate has stayed at this level since then (Chart 1.2). Market interest rates have 
generally follo wed the downward movement in the key policy rate, and filtered through to 
households in the form of record -low mortgage rates.  
                                                
2 The inflation target was revised (to 2% per annum) in March 2018.  
0100200300400500600700800900
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Price index in NKrChart 1. [NOR] Commodity Price Index for Crude Oil , 1995 -2017 (1995 Jan =100)
Source: IMF Primary Commodity Prices.  Viewed at: http://www.imf.org/external/np/res/commod/index.aspx WT/TPR/S/373 • Norway  
 
- 14 - 
 
  Box 1.1 The Government Pension Fund – Global (GPFG)  
The Fund was established by law in 1990 with the adoption of the Act relating to the Government Petroleum 
Fund. However, the state of public finances at that time did not allow any transfer into the Fund (until 1996). 
Subsequently, the annual net cash flow accruing to the state from petr oleum activities has been channelled 
into the Fund in full. Through its investments, the GPFG transforms this petroleum revenue into foreign 
financial assets. Separately, and in accordance with Fiscal Policy Guidelines introduced in 2001, Parliament 
decide s on the annual withdrawal from the Fund to cover the non -oil budget deficit of the state budget.  
The Fund is the Norwegian people's savings. Parliament has given the overall responsibility for the 
management of the Fund to the Ministry of Finance. The op erational management is delegated to Norges 
Bank. The overarching objective for the investments of the GPFG is to achieve the maximum possible returns, 
given a moderate level of risk. Within this scope, the Fund shall also be a responsible investor. Benchm ark 
indices have been established to evaluate the Fund's performance. The Fund is not to be used as a tool to 
further foreign policy or climate policy objectives, although climate issues are relevant for the management of 
the Fund. The Ministry of Finance has also adopted ethically motivated guidelines, and a Council of Ethics 
monitors investments and gives advice to Norges Bank on observation and exclusion of companies from the 
Fund.  
The Fund's investment strategy has been developed over time based on com prehensive assessments. 
Initially, the Fund was invested exclusively in fixed -income securities. The investment mandate was later 
extended to equities (1998) and real estate (2010). At the end of 2016, assets were distributed between 
equities (62.5%), fixe d-income securities (34.3%), and real estate (3.2%). Noting a gradual strengthening of 
the risk -absorptive capacity of the GPFG over time, in June 2017 Parliament supported a proposal from the 
Government to increase the equity allocation to 70%. Whether th e Fund should be permitted to invest in 
unlisted equities on a general basis is under consideration.  
The Fund is by far the largest portfolio managed in Norway and among the world's largest sovereign wealth 
funds. At the end of 2016, equity and fixed inco me investments were spread across 77 countries, in about 
9,000 individual companies and some 1,250 issuers worldwide. The market value totalled NKr 8,488 billion at 
the end of 2017, an increase of NKr 978 billion in one year. Measured in Norwegian kroner, the Fund's value 
has increased steeply in recent years. However, with the entire capital of the Fund invested abroad and fresh 
funds derived from commodities (oil and gas) denominated in foreign currencies, the international purchasing 
power of the Fund is  de-linked from the krone exchange rate.  
The Fiscal Policy Guidelines stipulate that, in the long run, the structural non -oil central government budget 
deficit should correspond to the expected real rate of return of the Fund, defined as 4% p.a. in 2001. 
Persistent low international interest rates prompted a downward revision of the expected long -term return of 
the GPFG to 3% in 2017.  
Source:  WTO (2012); Norges Bank Investment Management (NBIM); and Meld. St. 26 (2016 -2017) Report 
to the Storting (white paper), The Management of the Government Pension Fund in 2016 . 
Chart 1.2 Key Policy Rate vs 3 -month NIBOR, 2005 -17 
Per cent  
 
Note:  Monthly  average of daily observations.  
Source:  Norges Bank. Viewed at http://www.norges -bank.no/en/ ; and OSLO Stock Exchange. Viewed at: 
https://www.oslobors.no/ . 
0.001.002.003.004.005.006.007.008.00Jan-05May-05Sep-05Jan-06May-06Sep-06Jan-07May-07Sep-07Jan-08May-08Sep-08Jan-09May-09Sep-09Jan-10May-10Sep-10Jan-11May-11Sep-11Jan-12May-12Sep-12Jan-13May-13Sep-13Jan-14May-14Sep-14Jan-15May-15Sep-15Jan-16May-16Sep-16Jan-17May-17Sep-173-month NIBOR Key Policy RateChart 1.[NOR] Key Policy Rate vs 3 -month NIBOR, 2005 -17
Norges Bank.  Viewed at http://www.norges -bank.no/en/; and  OSLO Stock Exchange . Viewed at: 
https://www.oslobors.no/Percent
Monthly average of daily observations.  Note:
Source:WT/TPR/S/373 • Norway  
 
- 15 - 
 
  1.7.  The monetary and fiscal stimulus propped up private and public consumption, and allowed 
real mainland GDP to expand by 2.2% in 2014 and another 1.4% in 2015 (Table 1.1). However, 
the growth w as geographically uneven. The contraction in the petroleum industry and its 
repercussions on the supply chain affected local communities, particularly in the South West and 
West of Norway. The rise in unemployment in these regions was sharper than the nati onal 
average ; it rose  from 3.5% in 2013 -2014, to 4.4% in 2015, and 4.7% in 2016 (Table  1.1).3 In 
addition, the shakedown in petroleum -related activities hit local incomes, as many of those forced 
to leave high -paid jobs found new employment, but at reduced  remuneration. The uneven 
economic performance was particularly manifest in the housing market, where house prices 
remained stagnant in the South West of Norway while rising briskly elsewhere, particularly in the 
capital Oslo during 2016. Signs of a genera l economic recovery have become consistently stronger 
in the course of 2017 (Table 1.2).  
Table 1.2 Selected macroeconomic indicators , 2012 -17 
 2012  2013  2014  2015  2016  2017  
National account (%age change)a       
Gross domestic product, market values  2.7 1.0 2.0 2.0 1.1 1.8 
Final consumption expenditure of households and 
NPISHsb 3.5 2.8 2.1 2.6 1.5 2.3 
Household final consumption expenditure  3.5 2.7 1.8 2.3 1.5 2.4 
Final consumption expenditure of NPISHs  2.2 4.6 6.9 9.0 1.9 1.1 
Final consumption expenditure of general 
government  1.6 1.0 2.7 2.4 2.1 2.0 
Final consumption expenditure of central 
government  1.7 1.0 3.4 3.1 2.3 1.2 
Final consumption expenditure of local 
government  1.4 1.0 1.9 1.6 2.0 2.7 
Gross  capital formation  4.7 6.7 0.2 -3.4 5.0 2.6 
Gross fixed capital formation (GFCF)  7.6 6.3 -0.3 -4.0 -0.2 3.5 
Exports of goods and services  1.6 -1.7 3.1 4.7 -1.8 0.8 
Imports of goods and services  3.0 5.0 2.4 1.6 2.3 2.2 
Central government debt, NKr billion 
(end-period)  617.2  604.0  485.5  482.8  515.6  .. 
% of GDP  20.8 19.6 15.4 15.5 16.5 .. 
General government (% of GDP)         
Revenue  56.1 54.1 53.8 54.1 54.0 .. 
Expenditure  42.3 43.3 45.1 48.0 50.0 .. 
Net lending/borrowing  13.8 10.8 8.7 6.1 4.0 .. 
Prices and exchange rate         
Inflation (CPI, %age change)  0.8 2.1 2.0 2.1 3.6 1.8 
Nkr/€ (annual average)  7.5 7.8 8.4 9.0 9.3 9.3 
Nkr/US$ (annual average)  5.8 5.9 6.3 8.1 8.4 8.3 
.. Not available.  
a Figures from 2016 onwards are preliminary.  
b NPISHs refers to non -profit institutions serving households.  
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . 
1.8.  Wage formation, which is partly determined through cent ralized bargaining, has felt the 
impact of the softer job market. Wage growth, at 1.7% in 2016, was at the lowest level since 
World War II. A spike in consumer price inflation (up 3.6%) due to the weak krone meant that real 
wages actually fell in 2016. How ever, without a further weakening of the krone, price pressure has 
been receding. Overall, the combination of wage restraint and currency depreciation has given a 
solid boost to the international competitiveness of the mainland economy. The trend towards a  
stronger krone, particularly between August 2016 and February 2017, was reversed in late 2017.  
1.9.  The fiscal rule applied to the central government budget for many years stipulates that the 
structural non -oil deficit should, over time, correspond to the real  rate of return of the GPFG. 
Going forward, the expected real return of the fund is likely to be more or less stable, measured as 
a share of mainland GDP. As the revised expected return (Box 1.1) and the deficit were roughly 
                                                
3 The rise in unemployment has been mitigated by the departure of migrant labour, particularly from 
other EEA countries such as Sweden and Poland.  WT/TPR/S/373 • Norway  
 
- 16 - 
 
  equal in 2017, a broadly neutra l fiscal stance should therefore be expected in the coming years. 
However, Norway's economic performance during 2017 suggests that the cyclical downturn that 
began in the autumn in 2014 has been coming to an end, and that no additional stimulus should 
be necessary. The Norwegian economy appears to be resilient to oil prices remaining in the 
US$50 -60 range per barrel.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.10.   Norway's merchandise trade surplus doubled between 2000 and 2008 as Norway benefited  
from markedly improved terms of trade. The crisis in 2008 -2009 affected both imports and exports 
negatively, but whereas Norway's imports quickly returned to pre -crisis levels, exports lagged  
behind. The high petroleum pri ces that prevailed until mid -2014 brought sizable trade surpluses 
(Table 1.3), but exports of traditional (non -oil) goods were stagnant or declining. The weak trend 
in non -oil exports reflected a significant decline in the competitiveness of industries in mainland 
Norway.  
Table 1.3 Balance of payments, 2012 -16  
(US$ million)  
 2012  2013  2014  2015  2016  
Current account balance  63,687  53,693  52,512  30,528  14,090  
Balance of goods and services  66,456  56,439  44,937  21,726  3,205  
Balance of goods  68,985  60,905  49,707  24,442  11,739  
Balance of services  -2,529  -4,466  -4,771  -2,716  -8,535  
Exports, total  206,898  204,829  193,651  145,664  126,692  
Goods (f.o.b.)  159,595  155,211  143,531  102,913  88,874  
Crude oil and natural gas 104,930  98,908  87,492  55,142  44,456  
Ships  1,355  1,414  1,452  863 1,895  
Petroleum activities, various goods  61 80 72 451 35 
Other goods  53,250  54,808  54,514  46,457  42,488  
Services  47,303  49,618  50,120  42,751  37,818  
Imports, total  140,442  148,391  148,714  123,939  123,488  
Goods (c.i.f.)  90,610  94,306  93,823  78,472  77,135  
Goods (f.o.b.)  87,703  91,624  91,073  76,176  74,891  
Services  49,832  54,084  54,891  45,467  46,353  
Balance of income and current transfers  -2,769  -2,746  7,575  8,802  10,886  
Compensation of employees and 
investment income ( primary income), net  4,191  5,569  15,763  16,014  17,846  
Current transfers ( secondary income), net  -6,959  -8,315  -8,188  -7,211  -6,960  
Capital account  224 239 197 114 113 
Financial account  47,153  50,092  54,926  6,813  38,672  
Direct investment  -599 9,460  20,549  15,165  24,869  
Portfolio investment  51,089  59,496  19,912  32,975  6,364  
Other investments  -4,104  -21,277  8,439  -35,383  3,912  
Reserve assets (IMF breakdown)  767 2,413  6,025  -5,944  3,527  
Net errors and omissions  -16,551  -3,730  2,231  -23,893  24,430  
Memorandum item (%)       
Current account/GDP  12.5 10.3 10.5 7.9 3.8 
Balance of goods/GDP  13.5 11.6 10.0 6.3 3.2 
Note:  Central Bank used exchange rate (NKr/US$).  
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . 
1.11.   The 50% reduction in the price of oil since 2013 -2014 has had a profound impact on 
Norway's merchandise trade balance. Altho ugh the level of output of the offshore petroleum sector 
has been little affected by the price decline, the fall in Norway's export revenue from lower prices 
was almost immediate. Crude oil and natural gas, which accounted for 60% of Norway's 
merchandise e xports in 2012, reached an export share of 48% in 201 7 (Chart 1.3). In addition, 
the changed prospects for the oil and gas industry have led to a marked decline in the global 
demand for petroleum -related goods and services, including oil rigs, production s hips, specialized 
engineering goods, transportation to and from offshore fields, and mapping and surveying 
services. For Norway, this effect has meant both lower exports and lower imports.  WT/TPR/S/373 • Norway  
 
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  1.12.   On the other hand, the significant depreciation of the Norwegian kr one since 2013 has 
improved the competitiveness of Norwegian businesses. Although the pattern of merchandise 
imports seems to indicate minor changes between 2012 and 2016 (Table A1.2), imports became  
more expensive and fell by 17% overall (measured in US d ollars as in Chart 1.3). Some 
export -oriented sectors, in particular fish and fish farming, have experienced a boom (Table A1.1), 
whereas in other sectors, such as the production of metals and fertilizer, capacity constraints and 
price fluctuations have li mited the otherwise positive impact of a cheaper Norwegian krone.  
Chart 1.3 Composition of merchandise trade, 2012 and 2017  
 
Note:  Preliminary figures for 2017.  
Source : UNSD, Comtrade database (SITC Rev.3); a nd Statistics Norway. Viewed at: http://www.ssb.no/en . 
 
Chart 1.[NOR] Composition of merchandise trade, 2012 and 2017
2012 2017
(a)    Exports (f.o.b.)
Manuf.
14.9%
Mining
63.7%Chemicals 3.6%Other 
4.6%
Other mining
15.5%Agri-
culture
12.7%Machinery 
and transport 
equipment
9.7%Crude oil
25.4%Fish and fish 
products 
10.9%
Natural gas
22.8%Other 
manufactures
5.7%
Manuf.
19.0%Other 
agriculture 
1.8%
Total:  US$161.0 billion Total:  US$102.1 billion  
(b)    Imports (c.i.f.)
Chemicals
9.0%Transport 
equipment  
15.4%Manufactures
75.1%
Other semi -
manufactures
9.6%
Non-electrical 
machinery
11.0%Textiles and 
clothing 4.1%
Electrical 
machines
11.8%Mining 
12.7%Agriculture
10.4%Other
1.2%
Chemicals
9.6%
Other semi -
manufactures
12.6%
Non-electrical 
machinery
9.7%Electrical 
machines
11.1%Mining 
9.7%
Transport 
equipment  
18.1%Other 
manufactures
13.5%
Textiles and 
clothing 
4.1%
Manufactures
78.7%Agriculture
10.3%
Total:   US$87.3 billion Total:  US$82.7 billion Other
1.9%Mining
75.0%Chemicals 2.2%
UNSD, Comtrade database (SITC Rev.3); and Statistics Norway. Viewed at:  
http://www.ssb.no/en [February, 2018].Other 
manufactures
14.1%Other 
3.6%
Other mining
15.2%Agri.
6.5%Machinery and 
transport equipment
7.9%
Crude oil
34.0%Fish and fish 
products 5.4%
Natural gas
25.9%Other 
manufactures
4.8%Other 
agriculture 
1.1%
Note:  Preliminary figure for 2017. 
Source:  WT/TPR/S/373 • Norway  
 
- 18 - 
 
  1.13.   The trend towards an increasing share of trade with countries in Asia continued between 
2012 and 2017 (Chart 1.4). The European Union nevertheless remains Norway's dominant trading 
partner, accounting for nearly 80% of its exports and 60% of its imports. T he pre -eminence of 
Germany, the United Kingdom, and the Netherlands on the export side (Table  A1.3) is partly a 
reflection of these countries being the immediate, though not necessarily final, destination of oil 
and gas from the Norwegian continental shelf . Joined by Sweden and Denmark, these 
five countries form Norway's  traditional trading partners, as evidenced in the import statistics 
(Table  A1.4).  
Chart 1.4 Direction of merchandise trade, 2012 and 2017  
 
Note:  Preliminary figures for 2017.  
Source:  UNSD, Comtrade database; and Statistics Norway. Viewed at: http://www.ssb.no/en . 
Chart 1.[NOR] Direction of merchandise trade, 2012 and 2017
2012 2017
(a)    Exports (f.o.b.)
EU-28 
80.4%Other 
7.6%
Asia 
7.4%United States 
4.6%
Total: US$161.0 billion Total:  US$102.1 billion
(b)    Imports (c.i.f.)
United States 
5.4%Other 
13.1%
EU-28 
64.2%Asia 
17.3% China
9.3%Korea, Rep. of 
1.3%Other 
Asia 4.4%Other 
10.9%
EU-28 
58.8%Asia 
23.5%Japan 
2.1%United States 
6.8%
China
9.8%Korea, Rep. of 
6.8%Other 
Asia 4.8%
Total:   US$87.3 billion Total:   US$82.7 billion
Source:  Japan 2.3%Other 
6.0%
Asia 
7.6%
EU-28 
81.3%
UNSD, Comtrade databse; and Statistics Norway. Viewed at: http://www.ssb.no/en 
[February, 2018].United States 
5.0%
Note:  Preliminary figure for 2017. WT/TPR/S/373 • Norway  
 
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  1.14.   Although Norway's merchandise trade surplus declined by more than 80% between 2012 
and 2016, s omewhat higher volumes of oil and gas exports nevertheless ensure that Norway's 
exports of goods continue to exceed imports. Norway's t rade in services, which  normally runs a 
deficit, has been less volatile, but the trend towards lower exports (and imports ) has also 
emerged.4 Whereas Norway's internationally oriented merchant fleet and cruise lines have never 
ceased to be substantial earners of foreign exchange, many ship -owners have also expanded in 
the (normally) lucrative offshore market for transportati on services and flotels. The maritime and 
offshore sectors are estimated to have accounted for nearly 65% of Norway's services exports in 
2014.5 Since then, offshore service providers have experienced reduced activity and substantially 
lower rates for the hiring of rigs and vessels. The full impact was felt in 2016, resulting in a 
significant decline in offshore exports, and thus also in services exports overall (Tables 1.3 and 
1.4). Other major services exports, e.g. in banking, telecommunications and air transport, have 
been much less affected by the difficulties related to the petroleum industry. Moreover, Norway's 
deficit in tourism travel has narrowed considerably as the weaker krone has made Norway a more 
attractive destination for foreign arrivals, an d encouraged more Norwegians to spend their 
holidays at home. The currency effect has been much smaller on Norway's border trade. Statistics 
Norway estimates that Norwegian residents undertook approximately 7.7 million day -trips in 2016, 
spending almost NK r 14 billion on cheaper goods and services in neighbouring countries.6  
Table 1.4 Trade in services for non -financial enterprises by industry, 2012 -16a 
(US$ million and %)  
 2012  2013  2014  2015  2016  
Services exports  32,407  33,704  34,685  30,975  26,306  
 (% of total exports)  
Mining and quarrying  10.6 7.6 8.6 8.7 8.8 
Manufacturing  11.4 10.4 9.9 9.5 10.5 
Construction  0.2 0.8 0.1 0.1 0.4 
Wholesale and retail trade  2.5 4.2 2.4 2.3 2.3 
Transportation and storage  42.6 44.8 48.4 50.6 45.9 
Information and communication  9.1 8.9 7.4 8.7 11.5 
Professional, scientific and technical activities  17.3 16.0 15.3 14.0 14.9 
Administrative and support service activities  4.9 5.8 6.5 4.7 4.5 
Other industries  1.4 1.5 1.4 1.4 1.3 
Services imports  32,063  33,329  33,707  30,639  29,222  
 (% of total imports)  
Mining and quarrying  28.1 27.5 26.5 26.2 27.7 
Manufacturing  9.7 9.4 8.8 7.3 7.9 
Construction  1.2 1.4 1.1 1.1 1.0 
Wholesale and retail trade  6.7 7.6 8.2 7.8 7.6 
Transportation and storage  26.0 25.6 26.7 30.3 27.0 
Information and communication  9.7 8.9 9.3 10.3 11.9 
Professional, scientific and technical activities  9.4 8.9 9.1 8.6 8.4 
Administrative and support service activities  7.3 8.2 8.1 6.7 6.3 
Other industries  1.9 2.6 2.3 1.9 2.2 
a Services for non -financial enterprises; total exports and imports differ from those in balance of 
payments.  
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . 
1.15.   The EEA Agreement makes Norway part of the European Union 's single market for services. 
As a consequence, the European Union  accounts for 70% of Norway's services imports and nearly 
65% of its export s (Table 1.5). Outside of Europe, Norway's main trading partners for services are 
the United States and certain countries in Asia, i.e. China, Japan, Korea, and Singapore.  
                                                
4 Many of Norway's largest enterprises export both goods and services.   
5 Menon Economics, Omfang og betydnin g av handel med tjenester for Norge , Menon -publikasjon 
Nr. 50/2016. Viewed at: https://www.nho.n o/siteassets/nhos -filer-og-bilder/filer -og-
dokumenter/internasjonalt/omfang -og-betydning -av-handel -med-tjenester -for-norge.pdf . Estimates are 
somewhat uncertain . 
6 Significant price differentials create incentives to maximize the use of tax -free allowances , particularly 
for foodstuffs, alcoholic beverages, and tobacco. Three border towns in Sweden (Strömstad, Charlottenberg, 
and Töcksfors) account for around 75% of this trade. Source: Statistics Norway 
http://www.ssb.no/varehandel -og-tjenesteyting/statistikker/grensehandel/kvartal/2017 -03-07. WT/TPR/S/373 • Norway  
 
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  Table 1.5 Trade in services by geogr aphical breakdown, 2016  
(%) 
  
EU Other 
European 
countries  North America  Central - 
and 
South 
America  Asia, 
Oceania 
& Polar 
regions  Africa  Not 
allocated  Total  United 
States 
only 
  (% of the world)  
Services exports  65.6 3.2 9.5 7.7 4.3 13.9 1.7 1.8 
Sea transport  65.1 1.0 5.5 4.5 5.7 20.6 1.5 0.7 
Other transport  87.1 2.2 2.8 2.6 0.2 3.0 0.1 4.5 
Travel  82.0 5.6 6.1 5.5 0.7 5.4 0.2 0.0 
Communication, 
computer and 
information 
services  72.9 4.0 8.1 7.0 1.2 13.0 0.7 0.1 
Insurance and 
financial services  64.0 1.8 21.7 21.7 2.5 4.8 5.0 0.1 
Other business 
services  52.0 4.7 14.3 10.2 6.6 16.3 2.6 3.5 
Services imports  69.0 3.3 9.1 8.5 3.7 11.9 1.0 1.9 
Sea transport  63.2 1.6 5.6 4.6 6.6 20.9 1.5 0.6 
Other transport  75.5 3.1 7.4 6.9 2.5 9.2 1.5 0.7 
Travel  75.8 4.6 9.2 9.1 1.1 7.8 1.4 0.1 
Communication, 
computer and 
information 
services  75.3 1.8 9.5 9.1 0.1 12.9 0.2 0.1 
Insurance and 
financial services  63.2 1.2 18.1 16.9 5.9 7.0 0.4 4.3 
Other business 
services  62.1 3.1 9.9 9.0 6.1 13.6 0.6 4.5 
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . 
1.16.   In spite of the recent decline in oil and gas prices, Norway still has a surplus on its current 
account. Nonetheless, the su rplus has been significantly reduced , from the equivalent of 12.5% of 
GDP in 2012 to 4% in 2016 (Table 1.3).  
1.3.2   Trends and patterns in FDI  
1.17.   Domestic and foreign investment in mainland Norway has remained steady in recent years, 
averaging about NKr 55 billion annually since 2010. The level is nevertheless some NKr  20 billion 
below the peak reached in 2008 (Chart 1.5). The decline and subsequent levelling -off of 
investment has been most pronounced in manufacturing, but private sector investment in services 
has f ollowed a similar trend. Investment in offshore installations, including pipelines, should in 
principle be easier to predict as such projects require detailed development plans that are subject 
to approval by Parliament. Offshore investment rose sharply be tween 2011 and 2013, as planned, 
and was expected to decline from then onwards. However, the reduction has been much sharper 
than expected, in part because the quest for higher investment efficiency has driven down costs 
since 2014.  
1.18.   According to UNCTAD dat a, the stock of FDI in Norway peaked in 2012 at US$212.4 billion. 
The subsequent decline in the FDI stock (measured in US dollars) reflects the significant 
depreciation of the Norwegian krone, as net FDI inflows remained positive (Chart 1.6). However, 
while FDI returned to an upward trend between 2013  and 2015, it fell sharply in 2016 when 
Norway recorded a net outflow of FDI of US$5.5 billion.  WT/TPR/S/373 • Norway  
 
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  Chart 1.5 Investment in Norway  
NKr billion, seasonally adjusted at  2015-prices  
 
Note:  Figures are calculated on a quarterly  basis.  
Source:  Statistics Norway, Economic Outlook for the year 2016, 1/2017.  
Chart 1.6 Net foreign direct investment in Norway, 2005 -16 
US$ million  
 
Source:  UNCTAD Stat.  
1.19.   Foreign controlled enterprises in Norway, i.e. enterprises where more than 50% of the 
capital is controlled from abroad, generated NKr 1,326 billion in turnover in 2015. At the end of 
2015, these 7,249 enterprises employed just under 337,000 persons, representing 21% of private 
sector employment in Norway. US -controlled businesses, which are concentrated in oil and gas 
extraction, account for the highest share of the turnover (21%), and a somewhat lower share of 
020406080100120140
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Investments in mainland industries Petroleum investmentsChart 1. [NOR] Investment in Norway 
(NOK billion,  seasonally adjusted atconstant 2015 -prices )
Source: Statistics Norway.Note: Figures are quartlery basis.
-10,000-5,00005,00010,00015,00020,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
050,000100,000150,000200,000250,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source:  UNCTAD Stat. Chart 3.[Norway] Foreign Direct Investment in Norway, 2005 -17
(US$ million)(US$ million)
FDI inflows
FDI stockWT/TPR/S/373 • Norway  
 
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  employees (16.6%). Swed ish-owned enterprises (30% of the foreign businesses) operate more 
widely in the Norwegian economy. Other important sources of FDI, according to these 
benchmarks, are Denmark, the United Kingdom, and Germany.7 
1.20.   According to Statistics Norway, there were 4,5 13 Norwegian subsidiaries abroad in 2015.8 
These subsidiaries had a combined turnover of NKr 1,280 billion in 2015 and employed 
approximately 280,000 persons. Norwegian subsidiaries are concentrated in the European Union  
(nearly 60% measured by turnover an d employment), and in particular Sweden and Denmark 
among the Nordic countries. However, the global presence of Norwegian subsidiaries is also 
growing outside Europe, notably in countries such as the United States and Brazil. The Norwegian 
subsidiaries are  primarily engaged in manufacturing, telecommunications, wholesale and retail 
trade, and mining and quarrying (Table 1.6).  
Table 1.6 Foreign direct investment stock by industry, 2013 -16 
 2013  2014  2015  2016  
Norwegian foreign direct investment      
US$ million  189,175  204,022  199,779  197,800  
NKr million  1,111,743  1,285,728  1,612,999  1,661,259  
 (% of total)  
Agriculture, forestry and fishing  0.7 0.9 1.1 1.1 
Mining and quarrying  31.3 28.0 24.2 25.1 
Manufacture  18.4 17.0 15.2 13.8 
Electricity, gas and steam  4.7 4.4 3.0 3.2 
Water supply, sewerage, waste  0.0 0.0 0.0 0 
Construction  0.5 0.5 0.5 0.6 
Wholesale and retail trade:  
repair of motor vehicles and motorcycles  2.2 2.6 2.4 2.3 
Transportation and storage  5.4 5.4 5.3 4.9 
Accommodation and food service activities  0.1 0.1 0.1 0.2 
Information and communication  5.8 7.9 7.6 7.2 
Financial and insurance activities  8.5 9.1 10.6 9.6 
Real estate activities  4.6 4.5 4.4 4.4 
Professional, scientific and  technical activities  3.2 3.9 1.9 3.0 
Administrative and support service activities  1.5 1.0 2.3 2.1 
Second homes  11.8 11.6 10.7 11.0 
Other industries  1.0 3.1 10.6 11.4 
Foreign direct investment in Norway      
US$ million  199,925  195,894  163,462  154,058  
NKr million  1,174,918  1,234,502  1,319,773  1,293,884  
  (% of total)  
Agriculture, forestry and fishing  0.5 0.4 0.4 0.1 
Mining and quarrying  31.0 33.5 29.4 28.1 
Manufacture  17.0 17.4 14.2 14.4 
Electricity, gas and steam  0.5 0.6 0.5 0.7 
Water supply, sewerage, waste  0.6 0.3 0.1 0.1 
Construction  1.0 1.1 1.1 1.2 
Wholesale and retail trade:  
repair of motor vehicles and motorcycles  8.8 8.5 7.6 8.2 
Transportation and storage  6.9 6.5 5.9 6.0 
Accommodation and food service activities  0.2 0.2 0.3 0.4 
Information and communication  5.5 5.8 5.6 6.0 
Financial and insurance activities  10.0 10.0 11.5 12.6 
Real estate activities  3.9 4.1 5.3 6.1 
Professional, scientific and technical activities  4.3 3.7 2.9 3.7 
Administrative and support service activities  3.0 2.3 3.2 3.4 
Second homes  5.4 4.9 4.8 5.3 
Other industries  1.3 0.6 7.0 3.8 
Source:  WTO Secretariat, based on information from Statistics Norway. Viewed at: http://www.ssb.no/en . 
 
 
                                                
7 Statistics Norway online information. Viewed at: https://www.ssb.no/en/virksomheter -foretak -og-
regnskap/statistikker/utfono/aar .  
8 Statistics Norway online information. Viewed at: 
https://www.ssb.no/en/utenriksokonomi/statistikker/ufats/aar .  WT/TPR/S/373 • Norway  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  Norway is a constitutional monarchy with a parliamentary democratic system of governance, 
with the King as head of state. The Constitution dates from 1814 and sets out the separation of 
powers of : the legislature, the S torting; the executive, granted to the King but exercised by the 
council of ministers; and the judiciary, consisting of the courts, the Supreme Court, and the Court 
of Impeachment . The Constitution also contains provisions on sovereignty, rule of law, huma n 
rights and freedoms, as well as general provisions on matters such as allodial rights and 
amendments. Article 115 of the Constitution contains special provisions whereby the Storting may 
transfer certain powers, by a three -quarters majority vote, to inte rnational organizations. This 
provision has been used in connection with Norway's adherence to the European Economic Area 
(EEA) Agreement.1 
2.2.  Norway has one of the longest continuously applied constitutions in the world . The 
constitution  had historically undergone few amendments over the last 100 years until recent 
amendments during the review period. In 2012, the Constitution was amended to separate church 
and state, making Norway a secular country without an official religion. A set of amen dments, the 
most substantial in its history, was enacted in 2014 to update the language of the Constitution and 
to incorporate provisions on human rights.2 The amendments on human rights provisions in 
Chapter E include provisions such as freedom of associa tion, freedom of expression, and right to 
privacy. The most recent amendment, in May 2016, was to change the constitutional status of the 
Central Bank of Norway (Norges Bank).  
2.3.  The Storting introduces legislation, imposes taxes, authorizes public spending, and debates 
domestic and foreign policy issues. The work of the 169 elected members is conducted  through the 
12 standing committees organized by subject area, e.g. finance and economic affairs, foreign 
affairs and defence , etc. Legislation is typically ini tiated by the Government. It is then sent to the 
Storting and typically dealt with in one of the standing committees upon which a recommendation 
is made and the matter is addressed in a bill or resolution that may ultimately be enacted after 
signature by t he King and the Prime Minister. The Storting typically addresses between 100 and 
150 bills each year.  
2.4.  The Supreme Court is at the top of the Norwegian court hierarchy, under which there are 
six courts of appeal, and then the courts of first instance, i.e. district courts. In addition, there are 
special courts pertaining to labour disputes, i.e. the Industrial Disputes Tribunal, and for land 
usage and ownership matters, i.e. the Land Consolidation Courts. There are also Conciliation 
Boards in which most civi l cases are mediated. Most commercial disputes are handled through 
arbitration. Disputes involving trade, contracts, or intellectual property infringement are typically 
handled by the ordinary courts. For cases concerning patents, registered trademarks and  designs, 
both validity and infringement actions are dealt with by Oslo District Court as the exclusive venue 
in the first instance.3 
2.5.  The Constitution grants executive power to the King but this is, in practice, exercised by the 
Council of Ministers (cabin et of ministers). Article 28 of the Constitution stipulates that matters of 
importance are to be dealt with by the Council of Ministers. The decisions taken by the Council of 
Ministers (formally by the King in Council) take the form of royal decrees. There  are currently 
16 ministries, including the Office of the Prime Minister.4 The Ministry of Foreign Affairs and the 
Ministry of Trade, Industry and Fisheries have central roles in the trade policy of Norway, but other 
ministries are also involved in trade, such as the Ministry of Agriculture and Food for agricultural 
trade matters, and the Ministry of Finance for customs matters. Other ministries also have 
responsibilities in other specialized areas of trade, investment, services, etc.  
                                                
1 Regjeringen online information. Viewed at: https://www. regjeringen.no/en/aktuelt/important -eu-eea-
matters/id2340957/ . 
2 A full language revision of the Constitution was undertaken; thus it now exists in the two currently 
used forms of the Norwegian language, Bokm ål and Nynorsk, having been updated from an outd ated form of 
Norwegian.  
3 The same has been proposed for copyright infringement actions; as of February 2018, a bill was 
pending before the Storting (Prop 104 L (2016 -2017)).  
4 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/dep/id933/ . WT/TPR/S/373 • Norway  
 
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  2.6.  Norway has formal procedures for consultations when a Ministry w ishes to consult an affected 
party on a proposed bill or act.5 In accordance with Regulation No.  184 of 19 February 2016 , 
Ministries and other state bodies must submit a proposal for a bill  to a public hearing when 
adopting new legislative acts , with a deadline for comments of no less than six weeks (norm ally 
three months ). The proposal is submitted to relevant stakeholders and published online on the 
Government's web portal. All proposals for legislative acts, as well as other measures of 
substantial impact, must generally be submitted for a public hearing before their adoption. A 
hearing will, however, not be required in cases of minor amendments. This is a strict criterion and 
requires a written decision from the relevant minister in each individual case. It follows also from 
the Public Administration Act that public hearings are generally required before new regulations 
are enacted.  
2.7.  The Kingdom of Norway is comprised of mainland Norway6, the archipelago of Sva lbard and 
the island of Jan Mayen. Norwegian territories also include Dronning Maud Land and Peter I Øy in 
the Antarctic and Bouvetøya. Pursuant to the Customs Act, the "customs territory" is "the 
Norwegian mainland and appurtenant territorial waters, but not Svalbard, Jan Mayen or Norwegian 
dependencies". Therefore, only goods imported to mainland Norway are subject to customs 
clearance in accordance with the Customs Act. Goods originating in Svalbard are exempt from 
customs duty according to the provision s of the customs tariff. Goods imported to Svalbard are not 
subject to customs duty, but there are restrictions on the import of certain goods.  
2.8.  The mainland is currently comprised of 19 counties, which are further divided into 
428 municipalities. Each cou nty (except Oslo) is governed by a county municipality, and the 
national Government is also represented in each county by a county governor. The counties are 
responsible for construction and maintenance of county roads, public transport, secondary school 
education, public health, cultural heritage, land use planning, and regional development ; while  the 
municipalities have oversight of primary school education, senior citizen services, out -patient 
health services, zoning, economic development, and municipal roads. There have been a number 
of recent legislative changes impacting the counties. In June 2016, the Storting agreed to the 
merger of two counties (Sør -Trøndelag and Nord -Trøndelag); thus, as of 1 January 2018, there 
were 18 counties. Also, in June 2017 , the Storting passed reform legislation that plans to 
transform the 18 counties into approximately 11 larger regional counties by 2020.7 
2.2  Trade Policy Formulation and Objectives  
2.9.  Norway pursues its trade policy on three basic levels — through the WTO's mult ilateral rules, 
the EEA and EFTA agreements, and bilateral free trade agreements. They each form an integral 
part of its trade policy framework and have not changed during the review period. Norway's trade 
policy has and continues to emphasize that Norway is a trading nation committed to promoting 
free trade and pursuing a trade policy that recognizes Norway's national interests. The overall 
objective is to "maintain and develop a trade framework that maximizes Norwegian value creation 
while at the same tim e contributing to global growth and sustainable development".8 
2.10.   The main elements of Norway's trade policy during the period were outlined in Norway's 
"Globalisation and trade" White Paper to the Storting, Meld St. 29 (2014 -2015).9 This Paper 
presented the current and possible future paths and priorities of Norway's trade policies at that 
time. It identified, in particular, five key areas where changes have taken place that necessitate 
policy change or direction. These key areas have not changed significantl y since that time but 
there have nonetheless been developments in several areas, including, inter alia , as a result of 
WTO Ministerial conferences (Box 2.1) . The White Paper also emphasized the importance of 
                                                
5 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/find -
document/consultations/id1763/ . 
6 Refers to the geographic mainland as opposed to the mainland economy (Section 1).  
7 Regjeringen online information. Viewed at: https://www.regj eringen.no/no/tema/kommuner -og-
regioner/kommunereform/regionreform/id2477186/ . 
8 "Globalisation and trade: Trade policy challenges and opportunities for Norway", Meld. St. 29 
(2014 -2015) Report to the Storting (White Paper) Summary. Regjeringen online info rmation. Viewed at: 
https://www.regjeringen.no/contentassets/5927c017d6734983aec2103765c80c6a/en -
gb/pdfs/stm201420150029000en gpdfs.pdf . 
9 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/5927c017d6734983aec2103765c8 0c6a/en -
gb/pdfs/stm201420150029000engpdfs.pdf . WT/TPR/S/373 • Norway  
 
- 25 - 
 
  promoting green growth and taking climate change  and environmental considerations into account 
in its trade policies and agreements. It notes that the international trade regime can advance a 
"green shift" by promoting trade in environmental goods and services, and that the Government 
will include a sep arate chapter on trade and sustainable development in FTAs.  
2.11.   In December 2017, Norway's Ministry of Trade, Industry and Fisheries issued a strategy 
paper for export and internationalization that highlights how Norway will strengthen its position as 
a tradin g nation through a number of goals such as securing market access, attracting foreign 
investment, and increasing exports.10 Norway's trade policies are highlighted in  the Government's  
political platform , the most recent from January 2018, as well as annuall y in the budget proposal 
documents to the Storting.  In these latest documents, Norway emphasized that it would work to 
achieve the best possible outcome at the WTO Ministerial Conference in Buenos Aires, would be an 
active proponent of free trade, and continue to work towards a fair, global trade regime un der the 
WTO.11 
Box 2.1 Norway's five key areas of trade policy  
Safeguarding and 
strengthening the 
multilateral trading 
system  – The Government 's primary trade policy interest is safeguarding and strengthening 
the multilateral trading system. It will seek solutions that lower trade barriers in 
other developed countries and emerging economies. Norway will give priority to 
market access for industrial goods (particularly seafood) and services, strengthening 
of the ru les for trade (anti -dumping and fishery subsidies), and a well -balanced 
solution for agriculture that also safeguards Norway's interests.  
– Further, Norway will seek to ensure that the least -developed countries (LDCs) are 
not required to make additional co ncessions and will uphold the development 
dimension of the negotiations.  
– The Government will seek to ensure that plurilateral agreements that are closely 
linked to the WTO are developed so that they can serve as an effective and 
constructive contribution  to achieving multilateral solutions that involve as many 
countries as possible.  
Priorities and 
considerations in 
connection with the 
opening of markets  – The Government will pursue a proactive trade policy that safeguards Norway's 
interests. This entails, for example, seeking to ensure greater market access for 
Norwegian companies and more predictability for exports of goods and services and 
investments, and promoting a stable economic and political framework for economic 
growth and development at the global level.  
– The Government will give greater priority to ensuring free trade in seafood on the EU 
market.  
– The Government will seek to initiate negotiations with important trade partners that 
Norway does not currently have agreements with, and exa mine the opportunities for 
entering into free trade agreements with regional groupings.  
Agricultural trade 
policy  – In future trade negotiations, the Government will continue to place emphasis on the 
Norwegian agricultural sector's need for protection. Defensive interests in the 
agricultural sector will be weighed against Norway's general trade policy interests 
and its offensive interests in other areas.  
– The Government will promote freer trade in agricultural products with a view to 
furthering global w elfare and food security, out of consideration for Norwegian 
consumers, and to achieve greater diversity in the Norwegian food market. The 
necessary emphasis will be placed on agricultural interests, but defensive agricultural 
interests will not in themsel ves be sufficient grounds for preventing Norway from 
entering into trade negotiations.  
– The Government will phase out all export subsidies, at the latest by the end of 2020.  
– The Government will support international initiatives to limit the use of expor t 
restrictions.  
                                                
10 Regjeringen online information. Viewed at:  
https://www.regjeringen.no/contentassets/e0545f1862534e4593237af085a88d47/nfd_eksportstrategi_eng_uu
.pdf. 
11 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-s-ud-
20172018/id2574542/sec1?q=handelspolitikken#match_0  and 
https://www.regjeringen.no/no/dokumen ter/politisk -plattform/id2585544/ . WT/TPR/S/373 • Norway  
 
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  Trade in services  – The Government will give priority to revitalizing the WTO services negotiations, and 
will attach importance to these negotiations taking place in parallel with ongoing 
regional and multilateral negotiating processes on services.  
– When the circumstances allow for the resumption of TiSA negotiations, the 
Government will promote the conclusion of an ambitious TiSA that provides a stable 
and predictable framework for trade in services, while focusing on services sectors 
where the ability to compete on equal terms in global markets is particularly 
important for Norwegian companies.  
– The Government will seek to extend TiSA so that it includes key emerging economies 
and ensure that TiSA be  designed in such a way that it may be  multilateralized in the 
WTO in the future.  
Economic diplomacy 
and transparency in 
trade policy  – The Government will intensify its efforts to make active use of trade policy in its 
strengthened economic diplomacy work.  
– The Government will seek to achieve as much transparency as possible and will 
encourage national debate on negotiation processes.  
Source:  Information provided by the authorities and "Globalisation and trade: Trade policy challenges and 
opportunities for Norway", Meld. St. 29 (2014 -2015) Report to the Storting (White Paper) Summary. 
Regjeringen online information. Viewed at: 
https://www.regjeringen.no/cont entassets/5927c017d6734983aec2103765c80c6a/en -
gb/pdfs/stm201420150029000engpdfs.pdf .  
2.12.   Norway issued other white papers during the review period that address trade and 
environmental issues. A White Paper on "Nature for Life", Norway's national biodiversity action 
plan, recognizes the interlinkages between  trade and environmental issues.12 It states that the 
Government's objective is to "maintain and develop a trade framework that maximises Norwegian 
value creation while at the same time contributing to global  growth and sustainable development". 
It further states that "trade commitments must be designed to take into account countries' needs 
to implement effective environmental and climate policies. At the same time, it is important that 
countries are not permi tted to unilaterally implement discriminatory or protectionist measures that 
unnecessarily obstruct trade."13 It further addresses the specific issues of sustainable fisheries and 
trade in endangered species. For sustainable fisheries, it notes that Norway has been advocating 
for effective rules in the WTO to prohibit fisheries subsidies that contribute to overfishing, excess 
capacity and illegal, unreported and unregulated fishing. It furthermore indicates that new 
regulations were to be issued that go beyo nd the CITES convention to protect threatened species 
in Norway. Work on the new regulations is in progress and they are expected to be issued in the 
spring of 2018. The regulations go beyond CITES in the following areas: CITES import permits will 
be requi red in addition to export permits for the import of Appendix II -species  and for the  internal 
trade of Appendix I -species , and certain (frequently traded) Appendix II -species will require an 
internal CITES certificate and must also  be tagged or otherwise ma rked. 
2.13.   Norway has also launched a government maritime strategy, "Blue Growth for a Green 
Future" and an ocean strategy, "New Growth, Proud History" as well as a White Paper "The Place 
of the Oceans in Norway's Foreign and Development Policy". The Maritime a nd Ocean Strategies 
outline industrial and trade policies for the maritime and ocean industries. The maritime strategy 
states that "the Government will work for a harmonized global regulatory framework, open 
markets, high requirements for maritime safety, environment, and social standards in international 
forums", underlining the importance of global rules for maintaining a level playing field and open 
markets in order to ensure free competition and increase global economic growth. The White Paper 
has a foc us on the achievement of Sustainable Development Goal 14, "conserve and sustainably 
use the oceans, seas and marine resources". Ocean -based industries are a key priority for Norway 
in the WTO as well as in other trade agreements and negotiations. In parall el, an important part of 
the policy is providing assistance to developing countries in the development of their "blue 
economy".  
                                                
12 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/902d eab2906342dd823906d06ed05db2/en -
gb/pdfs/stm201520160014000engpdfs.pdf . 
13 Regjeringen online information. Viewed at: 
https://w ww.regjeringen.no/contentassets/902deab2906342dd823906d06ed05db2/en -
gb/pdfs/stm201520160014000engpdfs.pdf . WT/TPR/S/373 • Norway  
 
- 27 - 
 
  2.14.   Norway has strong economic, political and historical ties with the United Kingdom,  with the 
EEA Agreement as the basis for Norwa y's trade relations. Norway's goal is to continue as close and 
extensive cooperation as possible with the United Kingdom after i ts withdrawal from the 
European  Union. Norway has expressed interest in joint or parallel solutions with the 
United  Kingdom and the European Union in areas pertaining to t he Single Market. As the 
United  Kingdom withdraws from the European Union, Norway needs to establish a new legal 
framework for its relations with the United Kingdom. As part of this work, an initial assessment has  
been undertaken that identifies key priorities in many areas, including trade policy, and a Brexit 
task force with participation from all central government departments has been established.14 
2.15.   The Ministry of Foreign Affairs is responsible for the governme nt consultative committee 
that advises the Government on matters regarding trade policy, in particular the WTO. The 
committee meets two to three times per year, depending on the general trade policy agenda, such 
as domestic debates on trade, WTO Ministeria ls, and the like.15 Other government bodies involved 
in WTO trade policy matters, organizations, business communities, labour organizations, and civil 
societies take part in the meetings of the committee. The committee was set up on 
1 January  1979 to advise  the Government on issues related to the General Agreement on Tariffs 
and Trade (GATT), and the mandate is to give advice on the work in the field of multilateral trade 
policy.  
2.16.   In addition to this, the Ministry of Trade , Industry and Fisheries organizes a trade policy 
dialogue twice a year with representatives of civil society and business associations. Meetings are 
held in advance of the EFTA Ministerial Meetings, and address issues of relevance to the EFTA 
third country agenda and to other bilateral free trade processes.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.17.   Norway has always been a strong supporter of the WTO and the multilateral trading system, 
as it recognizes the unique advantages the WTO provides in its common rules -based approach and 
effective conflict management procedures. As outlined in the 2015 white  paper to the Storting, the 
Government has emphasized the importance of strengthening the multilateral trading system while 
recognizing the significant challenges that it currently faces. As a small country with a medium -
sized economy , Norway has indicated  it has had good experiences at the WTO, as membership  has 
opened its economy and trade. In order to promote its national interests, Norway participates in 
the work of regular bodies, and also cooperates and contributes to development and capacity 
building  in the WTO. As part of its trade policy objectives, Norway has highlighted the importance 
of safeguarding and strengthening the WTO as a negotiating arena, the challenges in designing a 
negotiating agenda, the need for increased differentiation between co untries at different stages of 
development, and the importance of binding decisions.16 
2.18.   Norway completed its internal procedures for accepting the Trade Facilitation Agreement 
and notified its acceptance in December 2015.17 Furthermore, it completed the WTO p rocedures 
and implemented the revised ITA product coverage in 2016 and the revised list of pharmaceutical 
products following the fourth  review of product coverage.18 It is also a party to the plurilateral 
Government Procurement Agreement (GPA), and complete d the procedures for adopting the 
revised GPA in April 2014.19 Following the WTO Hong Kong Ministerial outcome in 2005, Norway 
pledged to phase out all export subsidies and, after the decision from the Ministerial meeting in 
Nairobi, all export subsidies wi ll be phased out by 2020 at the latest.  
                                                
14 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/no/tema/europapolitikk/brexit_spm/id2514464/ . 
15 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/aktuelt/wto -
utvalget/id2553378 /. 
16 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-29-
20142015/id2413532/sec4#KAP6 -2. 
17 WTO document W T/Let/1115.  
18 WTO documents WT/Let/1181 and WT/Let/1268.  
19 WTO online information. Viewed at: https://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm . WT/TPR/S/373 • Norway  
 
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  2.19.   During the review period, Norway has been closely involved in all areas of WTO negotiations 
and has sometimes played a leadership role. Norway has sponsored or co -sponsored a number of 
proposals on a range of issues . Norway has also supported other areas of WTO work such as 
providing preferential treatment to services and service suppliers of LDCs.20 
2.20.   Norway was not involved in the WTO's dispute settlement system as a complainant or 
respondent during the review period;21 however, it did participate as a third party in 40 disputes.22 
Norway has never been a respondent in any DS case and has been a complainant only four times, 
most recently  in 2009.23 
2.21.   Norway has an exemplary record in terms of meeting its notification obliga tions. It has 
made timely notifications in nearly all areas. However, updated or initial notifications are needed in 
a few areas, e.g. customs valuation, RTAs, quantitative restrictions, and rules of origin.  
2.3.2   Regional and preferential agreements  
2.22.   Norway has placed  the multilateral trading system at the centre of its trade policy for many 
years, but it also continues to pursue trade liberalization through regional or bilateral FTAs. 
Norway's FTA framework is mainly built on the EFTA agree ments, although it has  
two long-standing bilateral agreements with Greenland and the Faroe Islands. Norway's policy has 
been to pursue FTAs through EFTA, although it has also entered into bilateral FTA negotiations 
with China. This process was put on hold in 2010 but reactivate d in 2017.  
2.23.   Norway currently has 32 preferential agreements in place, covering trade with 71 countries 
or territories; however, it does not have agreements in place with many of the world's largest 
traders. As highlighted in its White Paper on Globalisatio n and Trade, Norway does not have trade 
agreements with six of the ten world's largest economies. Trade with the European Union and 
other EEA partners still dominates, but over the last 20 years the share of Norwegian trade with 
these countries has decline d as Norway's direction of trade has shifted eastward.  
2.3.2.1   European Economic Area (EEA)  
2.24.   The European Economic Area (EEA) Agreement entered into force in 1994 between the 
European Union member States and Norway, Iceland and Liechtenstein, creating a single mark et 
with free movement of goods, services, persons, and capital, as well as non -discrimination and 
equal rules of competition. There is cooperation in many other areas as well, such as competition, 
research, energy, education, environment, and tourism. But areas such as the EU common 
agriculture and fisheries policies, as well as the customs union, monetary union, and trade and 
foreign policies, remain outside the EEA remit. As such, the EEA Agreement is Norway's most 
important and comprehensive economic and  trade agreement.  
2.25.   The EEA contains a number of institutional bodies that bring together the European Union 
and three EFTA members in order to make decisions or otherwise ensure the smooth functioning of 
the relationship.24 It is a two -pillar system of coope ration, with the EEA Council as the top 
decision -making body. The EEA Joint Committee is the other main body for cooperation, as it is 
responsible for making decisions that incorporate new EU legal acts into the EEA Agreement. There 
is also the EEA Joint P arliamentary Committee and the EEA Consultative Committee, which are 
advisory bodies. Once a decision to incorporate an EU legal act into the Agreement is made by the 
Joint Committee by consensus, it is binding, and the Act in question will be, or will be made part 
of, the internal legal order of the EEA members. In Norway, this will in some cases require the 
formal approval of the Storting. As of November 2017, approximately 11,000 EU legal acts ha d 
                                                
20 WTO document S/C/N/806.  
21 While there was no new request for consultations during the review period, the Report on EC –Seal 
Products (DS401) was circulated in 2013, and then Norway notified the DSB of its decision to appeal on 
24 January  2014.  
22 As of 28 February 2018, Norway was a t hird party to the following disputes for which consultations 
commenced during the review period: DS429, DS431, DS432, DS433, DS434, DS435, DS437, DS438, DS441, 
DS444, DS445, DS456, DS458, DS462, DS464, DS467, DS469, DS471, DS473, DS474, DS475, DS477, 
DS478 , DS480, DS482, DS483, DS484, DS485, DS493, DS494, DS495, DS504, DS508, DS509, DS510, 
DS511, DS512, DS516 , DS517, and DS526.  
23 DS254, DS328, DS337, and DS401 . 
24 For more information see Section (3)(ii) of WTO document WT/TPR/S/269/Rev.1.  WT/TPR/S/373 • Norway  
 
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  been incorporated into the EEA Agreement since it entered  into force in 1994, with more than 
9,700 incorporated by a decision of the Joint Committee.25  
2.26.   During the review period, a number of developments have occurred with respect to the EEA 
agreement for Norway. In 2013, through an exchange of letters, Norway an d Iceland amended the 
tariff quota for certain sheep meat; thus, Norway gave improved access to imports from Iceland.26 
In 2015, Norway and the European Union reached a new agreement, which subsequently entered 
into force, giving Norwegian seafood better ac cess to the EU market.27 The agreement comprises 
new duty -free quotas on certain processed fish products, a 50% increase in the quota for cured 
herring, and extension of the agreement from five to seven years.  
2.27.   In May 2016, Norway consented to the ratificat ion of a new agreement between the EEA 
EFTA States and the European Union on the EEA Financial Mechanism 2014 -2021.28 This 
agreement provides for the EEA Grants, i.e. a mechanism for Norway (and the other two EEA EFTA 
members) to provide financial contributions to alleviate economic and social disparities within the 
EEA area. At the same time, a separate agreement was al so reached on the Norwegian Financial 
Mechanism, i.e. Norway Grants.29 Under these new provisions for both grants, Norway will 
contribute €2,801.8 million over the seven -year period.30  
2.28.   The EFTA Surveillance Authority (ESA) is responsible for monitoring the implementation of 
EEA provisions in the EEA EFTA States, thus ensuring uniform application of internal market rules. 
EEA States are required to notify the transposition of EU Directives and Regulations, as well as 
abide by competition and state aid rules; thus, the ESA performs enforcement functions and it can 
order repayment, impose fines, etc. The ESA has been allocated specific tasks in supervising 
financial services. The ESA has the powers to adopt certain defined decisions that are legally 
binding on n ational supervisory authorities and market operators (including credit institutions, 
insurance companies and investment firms) established in the EEA EFTA States 
2.29.   According to the ESA's latest Internal Market Scoreboard, Norway saw a  general 
improvement in the transposition deficit during the review period.31 As of May 2017, only 
two directives had not been transposed in a timely manner, leading to a reduction in the 
transposition deficit to 0.2%. The two outstanding directives yet to be transposed concern 
technical barriers on goods and the environment. In the area of outstanding regulations, Norway 
had only three outstanding, all in the area of food, feed, animal health and welfare. However, it 
had a slightly worsening record in the area of infringement case s in the latest scoreboard, due to 
lack of conformity or incorrect application of a rule, as the number of cases rose from 34 to 37. 
Overall, the level of infringement cases varied over the review period, initially rising to 67 cases in 
2013 and then falli ng during the last three years.  
2.30.   Since 2015, Norway and the European Union have been re -negotiating their bilateral 
agreement on trade in agricultural products. An agreement was reached in April 2017 on improved 
market access through lower tariffs and impro ved tariff quotas.32 Close to 40 tariff lines will 
become duty -free for both parties on goods such as live plants, feed corn, and certain alcoholic 
beverages . Norway will open new or expanded quotas on beef, cheese, chicken and duck meat, 
and pork sausages , among other products . The European Union will open new quotas on products 
such as chicken meat, preserved meat and offal, dried milk and whey products, cut flowers, and 
potato chips. The ratification process is currently ongoing in the European Union, whi le the 
                                                
25 EFTA Secretariat online information. Viewed at: http://www.efta.int/Legal -Text/EEA -Agreement -1327. 
26 Lovdata online information. Viewed at: https://lovdata.no/dokument/TRAKTAT/traktat/2013 -06-17-
12?q=E%C3%98S . 
27 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/aktuelt/agreement -
norway -eu-grants/id2427805 . 
28 European Union online information. Viewed at: http://eur -lex.europa.eu/legal -
conte nt/EN/TXT/PDF/?uri=CELEX:32016D0837&from=EN . 
29 EFTA Secretariat online information. Viewed at: http://www.efta.int/EEA/news/Signature -
agreements -Financial -Mechanisms -period -2014-2021-327391 . 
30 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -119-s-
2015201 6/id2499581/sec7#KAP7 -1. 
31 ESA online information. Viewed at: www.eftasurv.int/media/scoreboard/Scoreboard -No-40.pdf . 
32 European Union online information. Viewed at: https://ec.europa.eu/info/news/eu -and-norway -
conclude -negotiations -enhance -trade -agricultural -products -2017-apr-07_en . WT/TPR/S/373 • Norway  
 
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  agreement was ratified by the Storting on 16 June 2017. The agreement is expected to enter into 
force on 1 January 2019.33  
2.3.2.2   European Free Trade Association (EFTA)  
2.31.   The European Free Trade Association (EFTA) Convention of 1960 establishes the legal bas is 
for today's EFTA and regulates the free trade relations between the current four EFTA States  – 
Iceland, Liechtenstein, Norway, and Switzerland. As three of the four EFTA members are now part 
of the EEA, the EFTA Convention mainly concerns trade between Switzerland and these three. The 
Convention covers trade in goods and services as well as investment and movement of persons. 
EFTA members are highly integrated into the world economy and have negotiated one of the 
largest networks of FTAs. About 80% of EF TA members' trade is conducted through FTAs.34 
2.32.   Norway is a party to the 26 EFTA FTAs which cover trade with 37 partner s (Table  A2.2).35 
Historically, EFTA FTAs have been driven by EU negotiations so as to secure the same or similar 
access with third parties as negotiated by the European Union. However, more recently, EFTA 
partners have prioritized negotiations based on economic principles.36 During the review period, 
EFTA concluded new agreements that have entered into force for Norway with respect to Bosnia 
and Herzegovina; some Central American States (Costa Rica, Guatemala, and Panama); the Gulf 
Cooperation Council (GCC); Georgia; Hong Kong, China; and Montenegro. These FTAs have 
generally covered the following subjects: trade in non -agricultural products; t rade in services; 
investment; protection of intellectual property; government procurement; competition; trade and 
sustainable development; cooperation; and dispute settlement. Trade in unprocessed agricultural 
products is not fully covered in the EFTA agre ements. The agreement with the GCC has not yet 
been notified to the WTO but Norway has implemented the agreement since 1 July 2014.  
2.33.   As of late 2017, EFTA States were pursuing talks or FTA negotiations with Ecuador, India, 
Indonesia, Malaysia, MERCOSUR, and  Viet Nam. Talks had been held but negotiations were on hold 
with respect to possible FTAs with: Algeria; Honduras; Thailand; and the Russian Federation, 
Belarus and Kazakhstan.37 Joint declarations on cooperation exist with respect to Mauritius, 
Mongolia, Moldova, Myanmar, Nigeria and Pakistan. EFTA was also undergoing work to update 
certain existing agreements. An FTA with the Philippines was concluded in 2016 but had not yet 
entered into force as of December 2017.  
2.3.2.3   Bilateral FTAs  
2.34.   Outside its agreements wit h the European Union and EFTA, Norway has two bilateral FTAs 
at present, regulating trade with the Faroe Islands (1993) and Greenland (1985).38 The agreement 
with the Faroe Islands grants free trade in industrial and fish products. The agreement also has 
provisions on competition, rules of origin, monopolies, public procurement, protection of 
intellectual property, dumping, and safeguard measures. A separate agreement on agricultural 
products was concluded together with the FTA. The agreement with Denmark co vering trade with 
Greenland provides for the continuation of the treatment following from the provisions of the 
Agreement between Norway and the European Economic Community after Greenland left the 
European Community's customs area. The coverage for trade in goods is expanded to those goods 
covered by zero tariffs in the EFTA Convention of 4 January 1960. The FTA covering trade with 
Greenland has not been notified to the WTO.  
                                                
33 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/en/aktuelt/biannual_170418/id2549368/ . 
34 EFTA online information. Viewed at: http://www.efta.int/sites/default/files/publications/fact -
sheets/General -EFTA-fact-sheets/efta -at-a-glance -september -2016.pdf . 
35 Twenty -six were in force as of September 2017; an additional one with the Philippines has been 
completed but has not yet entered into force.  
36 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-29-
20142015/id2413532/sec1?q=trade . 
37 EFTA online information. Viewed at: http://www.efta.int/free -trade/free -trade -agreements . 
38 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/no/tema/naringsliv/handel/nfd ---innsiktsart ikler/frihandelsavtaler/partner -
land/id438843/ , 
https://www.regjeringen.no/contentassets/e9ed51b25b1041dd9b2c23fc10da5f16/faeroeyene_avtale.pdf , and 
https://www.regjeringen.no/contentassets/e9ed51b25b1041dd9b2c23fc10da5f16/gronland_avtale.pdf . WT/TPR/S/373 • Norway  
 
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  2.3.2.4   Unilateral preferences  
2.35.   Norway's GSP scheme has been in place since 1971, and it p rovides for preferential imports 
from developing and least developed countries. There have been several developments in 
Norway's GSP scheme during the review period. In 2013, Norway revised its GSP system and 
introduced a new category of beneficiaries, des ignated "GSP+". As of end -2017, there were about 
90 countries benefitting from Norway's GSP scheme.39 Norway's scheme is based on the OECD's 
DAC list of ODA Recipients, with the exception of  FTA partners. The level of benefit is based on the 
countries' cate gorization on the OECD's DAC List, i.e. LDCs, other low -income countries, lower 
middle -income countries, and upper middle -income countries.  
2.36.   LDCs and other low -income countries with less than 75 million inhabitants benefit from 
duty- and quota -free imports  on all eligible products. Lower middle -income countries and 
territories with less than 75 million inhabitants (GSP+) benefit from an intermediary position, 
benefitting from better market access than ordinary GSP beneficiaries. This change facilitates an 
easier adoption for countries as they graduate or move up the GSP benefit scale. Lower 
middle -income countries and territories with more than 75 milli on inhabitants and upper 
middle -income countries and territories benefit from tariff reductions of between 10% and 100%.40  
2.37.   Another development has been the harmonization of GSP rules of origin and common 
documentation among Norway, Switzerland, and the European Union. In 2017, an agreement was 
reached after seven years of negotiations, whereby the parties have implemented self -certification 
of proof of origin in lieu of Form A. The GSP exporter must, however, register with the REX 
(Registered Exporter system), as developed and operated by the European Union.41 REX was 
approved by the Parliament in December 2016, and is being imp lemented through the customs 
procedures. The agreement is not yet formally in force, but REX implementation is temporarily 
based on domestic regulations.42  
2.38.   Norway, together with the European Union, Switzerland, and Turkey, also reached 
agreement on the iss ue of cumulation of origin in the framework of the GSP.43 The agreement 
notes that the parties apply similar GSP rules of origin and that they will recognize originating 
materials under the respective GSP rules of origin of the other parties. Furthermore, t here is a 
provision for customs administrative cooperation specifically for the purposes of verification and 
proof of origin. However, there are certain restrictions regarding regional cumulation for 
chapter s 1-24 for the SAARC region. The rest of the agre ement mainly contains provisions on the 
acceptance of replacement proofs of origin among the parties. The agreement is not yet formally 
in force, but administrative cooperation takes place  in line with a common understanding between 
the parties to the agre ement.  
2.39.   Norway's GSP scheme has a security mechanism, i.e. safeguard, for agricultural products 
under the GSP. When imports cause significant or potential market disturbances, the provisions in 
the regulation allow the King to take measures, including the i mmediate removal of the 
preferential tariff treatment. The regulation provides that the mechanism would apply to all 
developing countries covered by the GSP scheme and would not be in place for more than 
one year.44 The mechanism has never been invoked.  
                                                
39 WTO document WT/COMTD/N/6/Add.6  and Norway Customs online information. Viewed at: 
https://www.toll.no/en/corporate/import/free -trade/gsp ---generalized -system -of-preference/countries -that-
are-a-part-of-the-norwegian -gsp-system/ . 
40 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/en/a ktuelt/market_access/id707129/ . 
41 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018 /id2574326/sec2?q=gsp#KAP11 -5. 
42 Customs Regulations , section 8 -5-11. 
43 European Union online information. Viewed at: http://eur -
lex.europa.eu/resource.html?uri=cellar:51974fc1 -9774-11e6-a9e2-
01aa75ed71a1.0010.02/DOC_2&format=PDF . Lovdata online information. Viewed at: 
https://lovdata.no/dokument/TRAKTA T/traktat/2017 -06-21-12?q=gsp  and 
https://lovdata.no/dokument/TRAKTAT/traktat/2017 -06-21-11?q=gsp . 
44 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2008 -03-07-228. WT/TPR/S/373 • Norway  
 
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  2.4  Investment Regime  
2.40.   Norway's investment regime consists mainly of a number of provisions in various sectorial 
laws that have an impact on foreign direct investment, and in addition a relatively small number of 
bilateral investment agreements. The legislation  has not undergone any significant changes during 
the review period. Although there is no overarching law, nor policy, on foreign investment, a 
number of government organizations provide information to potential investors or otherwise 
promote foreign inves tment. Furthermore, the basic principles of the EEA apply in Norway as in 
other EEA member States, including freedom of establishment and free movement of capital, 
which enables cross -border investment by residents and companies of other EEA member States 
without discrimination.  
2.41.   Following the 2002 repeal of Norway's Business Acquisition Act No. 79 of 1994, there has 
been no requirement for notification or control for foreigners acquiring Norwegian business 
activities or assets.45 However, the Government has submitted to the Storting a new National 
Security Act. The new Act contains a mechanism to control the acquisition by foreign entities of 
Norwegian companies that play a crucial role in supporting critical national services. The Storting 
was expected to de bate and vote on the Act in the first quarter of 2018.  
2.42.   Norway's investment regime and policy falls under the responsibility of the Ministry of 
Trade, Industry and Fisheries.  
2.4.1   Framework agreements  
2.43.   Norway has in place 14 bilateral investment treaties (BITs) , which did not undergo revision 
during the review period.46 These are longstanding BITs, as Norway has not concluded any new 
agreements since the mid -1990s . These 14 agreements are not identical, but  generally include 
provisions on promotion and protection of investments, MFN treatment, expropriation and 
compensation, transfers of currency, subrogation, settlement of disputes, etc.  
2.44.   During 2006 -8, Norway commenced work on a general review of bilateral investment, and 
produced a draft model agreement with inpu t and comments from interested parties.47 This work 
also resulted in a paper outlining the comments and rationale for future investment agreements.48 
After receiving critical feedback from interested parties, mainly resulting from a  failure to achieve 
a prop er balance, the Government decided not to proceed with this draft.49 In 2015, the process 
was revitalized and a new revised draft model BIT was sent out for public consultation. After the 
consultation, the Government continued to  work on the draft model tex t, as there remained 
outstanding issues concerning investor -state dispute settlement procedures that were ultimately to 
be left to the Storting to decide upon due to constitutional compatibility. Therefore, this work has 
not yet led to the negotiation of a ny new BIT.  
2.45.   As of July 2017, Norway also had tax treaties in force with about 95 countries or 
territories.50 
2.4.2   Investment restrictions  
2.46.   In general, Norway has an open investment regime,  but there are a number of 
long-standing restrictions in certain areas (Tab le 2.1) . There have not been any changes to these 
during the review period, and Norway does not currently have any plans to further open these 
                                                
45 Act on the Repeal of the Business Acquisitions Act No. 38 of 2002.  
46 Chile, China, Czech Republic, Estonia, Hungary, Latvia, Li thuania, Madagascar, Peru, Poland, 
Romania, the Russia n Federation , Slovakia and Sri Lanka.  
47 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/no/tema/naringsliv/handel/nfd ---innsiktsartikler/frihandelsavtaler/norways -free-
trade -agreements/id457017/ . 
48 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/globalassets/upload/nhd/vedlegg/hoeringer/2008/forklarende -vedlegg -engelsk ---
final.doc . 
49 IISD online information. Viewed at: https://www.iisd.org/itn/2009/06/08/norway -shelves -its-
proposed -model -bilateral -investment -treaty/ . 
50 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/topics/the -
economy/taxes -and-duties/tax -treaties -between -norway -and-other -st/id417330/ . WT/TPR/S/373 • Norway  
 
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  sectors to foreign investors. Consistent with Norway's acceptance of the "four freedoms" under the 
EEA Agreement,  Norway may not restrict investments from citizens of another EEA member unless 
the restrictions are derived from the pursuit of specific policy objectives and the same restrictions 
apply to Norwegian citizens. A number of the investment re strictions liste d below are 
non-discriminatory licencing requirements etc., which apply equally to Norwegian and foreign 
investors.  
Table 2.1 Investment restrictions, 2018  
Sector  Restriction  Legal reference  
Land, real estate  and long -
term leases, farmland and 
forests , among others  Concessions are required for acquisition and 
for leases of longer than 10 years and on 
certain ownership of land  Concessions Act, No. 98, of 
28 November 2003   
Waterfalls, power supply 
rights, mining rights  Requires licensing and approval of the 
relevant ministry  Act on Acquisition of 
Waterfalls, Mines and O ther 
Real Estate, No. 16, of 
14 December 1914 ; Act 
relating to the regulation of 
watercourses, Act No. 17, of 
14 December  1917 
Financial in stitutions  Purchase of over 10% of the share capital is 
subject to suitability assessments.  Banks 
from non -EEA countries must establish a 
subsidiary or branch to provide banking 
services. At least 50% of the members of 
the board and half the members of the  
corporate assembly of a bank must be 
Norwegian or EEA nationals or residents  Financial Undertakings Act. See 
Chapter 5 (Section 5 -1 
(subsidiary) and 5 -6 (branch))  
Petroleum and gas 
exploration and exploitation  Subject to discretionary government licen se 
for exploration and production  The Petroleum Act, No. 72, of 
29 November 1996  
Audio -visual services  Foreign entities, excluding the EEA, may not 
control more than one third of the 
newspaper, radio, or television markets 
without a concession  Media Ownershi p Act, Act No. 
53, of 13 June 1997  
Commercial fishing  Licences granted to Norwegian citizens and 
companies in which Norwegians own at least 
60% of the capital and hold 60% of the 
shares  The Participation Act, No. 15, 
of 26 March 1999  
Air transport  Registration of aircraft that have Norwegian 
or EEA nationality; foreign ownership is 
limited to one third or less of the capital of 
the Norwegian joint stock company  Aviation Act, No. 101, of 
11 June 1993  
Maritime transport  To be registered as a vessel in the 
Norwegian Ordinary Ship Register (NOR), a 
minimum of 60% of the capital is to be held 
by Norwegian or EEA nationals. This capital 
requirement is not applicable to the  
registering of a vessel in the Norwegian 
Internationa l Ship Register (NIS).  Maritime Code, Act No. 39, of 
1994 
Source:  WTO document WT/TPR/S/269/Rev.1, Global Trade.net online information. Viewed at: 
https://www.globaltrade.net/f/b usiness/Norway/Investing.html### , Export.gov online information. 
Viewed at: https://www.export.gov/article?id=Norway -openness -to-foreign -investment . US State 
Department  online information. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2015/241690.htm#6 . 
2.4.3   Investment promotion and business environment  
2.47.   Innovation Norway is the government body  for business development creation throughout 
the country. The main goal of Innovation Norway is to trigger commercial and economically 
successful business development, as well as to enhance regional  economic development. 
Innovation Norway operates Invest in Norway,  the investment promotion agency responsible for 
attracting and facilitating foreign direct investments in Norway. Invest in Norway was created in 
2013 by Innovation Norway in cooperation with the Research Council of Norway and Industrial 
Development Corporation of Norway ( SIVA). It serves as a central point for potential foreign 
investors to obtain  key information, a ccess opportunities and organize meetings/network. Invest in 
Norway promote s a number of leading and emerging industries, e.g. bio -economy, energy and 
cleantech, and electric mobility, and provides information on government programmes in these WT/TPR/S/373 • Norway  
 
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  and other sectors as well as  on possible grants or sources of funding.51 Innovation Norw ay, the 
parent organization of Invest in Norway, provided NKr 6.7 billion in funds (as allocated by the 
Storting, from the county councils and from loan schemes) in 2016, mainly to companies and 
entrepreneurs. According to Innovation Norway, the NKr 6.7 bi llion triggered investments, both 
domestic and foreign , of NKr 20.1 billion in 2016. Changes were made to the law on Innovation 
Norway in 2016 which established that Innovation Norway is mainly owned by the Ministry of 
Trade, Industry, and Fisheries (51%) and the counties (49%), and provided for the dissolution of 
the regional boards in decision making.52 
2.48.   SIVA is a state -owned company under the Ministry of Trade, Industry and Fisheries 
operating  through property investments and innovation activities  to impro ve business 
development.  Through property investments, its aim is to lower entry barriers for industrial 
projects. Through innovation activities and networking, its aim  is to facilitate the establishment 
and development of enterprises in business and knowl edge environments. SIVA is often a partner 
for major industrial projects through its science and technology parks and Norwegian Innovation 
Clusters (NIC); in addition, it is co -owner of almost 100 innovation companies. SIVA receives 
funding from the Norweg ian Parliament but the property activities are self -financed. In 2017, SIVA 
received NKr 64.5 million to fund its innovation activities, and NKr 50 million to fund a new 
programme for supporting industrial test facilities.  
2.49.   The Research Council of Norway is  the Government's body for research issues. As the only 
national research funding agency, it provides about NKr 9 billion in funding each year for research 
and innovation projects, mainly to universities and institutes.53 It supports industry through 
fundin g schemes for industrial research and access to tax credit schemes, as well as by guidance 
on other relevant schemes for research cooperation and funding. It promotes international 
research networking through cooperation agreements and international fundin g mechanisms.  
2.50.   Investinor is Norway's venture capital fund investor operating as a private investor on 
commercial terms in order to stabilize liquidity in the capital market.  It only invests in Norwegian 
firms. It manages about NKr 4.2 billion and takes a m inority holding in the companies it invests in, 
i.e. maximum 49%. It typically invests in early -stage segments of the market that are 
underserved by private investors, in order to increase entrepreneurship and value creation in the 
Norwegian economy.54 As of 2017, it had a portfolio of 46 companies. In 2016, profits were 
NKr 122.0 million and it provided new venture capital of NKr 328.5 million.55 
2.51.   Norway also receives funding for businesses and start -ups through EU funding mechanisms. 
In 2017, the first fundi ng arrangement between  the European Investment Fund (EIF) and Norway 
for SME financing was set up. Pursuant to the agreement between the EIF, Innovation Norway, 
and the National Promotion Institute of Norway (NPI), the EIF will provide NKr 900 million in d irect 
guarantees, NKr  300 million in counter -guarantees, and up to NKr 400 million in loans for SMEs 
during 2017 -18.56 
2.52.   All foreign and domestic business enterprises involved in trade or business in Norway are 
required to register with the Brønnøysund Regist er Centre (Brønnøysundregisteret), pursuant to 
the Law on the Registration of Enterprises.57 Registration gives the company the right to conduct 
business, legal protection of its name,  and identification for tax and customs purposes. Different 
fees apply fo r registration depending on the filing method  (online or by post ) and type of 
enterprise; fees generally range from NKr 2,250 to NKr 6,797. Certain permits or licences may 
                                                
51 Invest in Norway online information. Viewed at: http://www.innovasjonnorge.no/en/start -
page/invest -in-norway/industries/ . 
52 Innovation Norway online information. View ed at: http://www.innovasjonnorge.no/en/arsrapport ---
spa-page-en/#side=en_208481 . 
53 The Research Council of Norway online information. Viewed at: 
https://www.forskningsradet.no/en/The_role_of_the_Research_Council/1138785841810 . 
54 Investinor online information. Viewed at: http://www.investinor.no/om -oss/. 
55 Investinor online information. Viewed at: http://www.investinor.no/aarsrapport -2016/styrets -
beretning/ . 
56 European Investment Fund online information. Viewed at: 
http://www.eif.org/what_we_do/guarantees/news/2017/innovfin_innovation_norway.htm . 
57 Act No. 13 of 6 June 1997. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/NL/lov/1997 -06-06-35. WT/TPR/S/373 • Norway  
 
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  also be required to operate businesses in certain sectors subject to a number of nat ional 
requirements; these are numerous and vary considerably by sector.58 
2.53.   There are many different forms of business establishment, i.e. sole -proprietorship s, 
partnerships, cooperative societies, associations, foundations, public limited companies, and 
Norwegian -registered foreign enterprises.59 Choice of establishment is often influenced by tax, 
liability, and risk factors, with foreign companies often establishing businesses in Norway as 
branches of foreign corporations or subsidiaries (i.e. as a limited li ability company). Businesses, 
including subsidiaries, are liable for corporate taxation in Norway at a corporate tax rate of 23% 
on profits as of 1 January 2018. The corporate tax rate has gradually been reduced over the 
review period, from 28% in 2013 to 23% in 2018.  
2.54.   According to the World Bank's Ease of Doing Business survey 2017, Norway ranked 6th, a 
slight improvement from 8th in 2016 and no change from 2012 (6th). The h ighest ranking scores in 
the sub -categories were with respect to enforcing contracts, resolving insolvency, and protecting 
minority investors; while the weakest areas were getting credit and dealing with construction 
permits.60 
 
                                                
58 See Altinn online information. Viewed at: https://www.altinn.no/en/Start -and-Run-a-Business/Before -
start-up/Planning/Do -you-have-to-ask-permission/ . 
59 Altinn online information. Viewed at: https://www.altinn.no/en/Start -and-Run-a-Business/Before -
start-up/Choosing -an-organisational -structure -/. 
60 World Bank Doing Business onl ine information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/norway#trading -across -borders . WT/TPR/S/373 • Norway  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  The main legislation for customs, the 2007 Act on Customs Duties and Movement of Goods 
(Customs Act) and its related regulations, 2008 Regulations to the Act on Customs Duties and 
Movement of Goods (Customs Regulations), continue to provide the main framework for import 
and export  procedures in Norway.1 They provide the overall framework including customs 
treatment, relief from customs duty, preferential tariffs, trade measures, duty drawback, customs 
control, customs cooperation, penalties and sanctions. During the review period, the Act was 
amended seven times and the Regulations at least 100 times.2 
3.2.  The amendments to the Act resulted in many changes but several were concentrated in the 
area of customs control3 and infringement whereby new fines and infringement charges were 
introduced as well as related procedural aspects.4 The main reason for introducing the fines in 
Section 16 -7 of the Customs Act was the introduction of postponed accounting of import VAT from 
1 January 2017.5 Previously, violations had been sanctioned with addi tional VAT. The fines are 
incorporated in the regulations and are applicable from 1 January 2017; there are differing fines 
for various infringements.6 One of the other significant changes introduced during the period was 
an increase in the ceiling on the duty-free private importation of goods from NKr 200 to NKr 350 
but also the inclusion of the previously excluded costs of insurance and transportation for the 
determination of value.7 Thus, this mainly results in savings for small mail order shipments.8  
3.3.  The Norwegian Customs (Tolletaten) is responsible for customs and border control matters; it 
is under the Ministry of Finance and operates with a budget of NKr 1,512 million (2016). There 
was a reorganization of certain functions as of 1 January 2016 when t he Customs and Excise 
Service was renamed the Customs Service, and the Tax Administration (Skatteetaten) took over 
certain post -clearance control activities, responsibility for the collection of customs duties, import 
VAT and excise duties, and administrat ive responsibility for the import VAT and excise duties. 
Following the change of name and functions, there has been a greater emphasis placed on border 
aspects and thus the key tasks of the Norwegian Customs are border control and the management 
of goods.  
3.4.  The Norwegian Customs developed a new business strategy in 2017. It recognized the 
increase in the flow of goods coming into and out of the country and the control and inspection 
measures it carries out on behalf of about 30 government agencies. Customs pl aces an emphasis 
on its social protection role and government revenue generation through collection of duties and 
fees. As part of its effort to modernize, create effective procedures, and make efficient use of 
resources, it has developed several strategie s focused on: better and more efficient procedures; 
improving information flows; automation of processes; and improving compliance through better 
control systems and selection of consignments for inspection.9 
                                                
1 The Act on Customs Duties and Movement of Goods (Customs Act) of 21 December 2007, No. 119 and 
Regulations to the Act on Customs Duties and Movement of Goods (Customs Regulations) of 
17 December  2008, No. 1502. Norwegian Customs online information viewed at: 
http://www.toll.no/contentassets/71f70c1b980a45b8b57098ded3069fd9/act_on_customs_duties_and_movem
ent_of_goods_jan2017.pdf  and 
http://www.toll.no/contentassets/eb096d765fd3460c9415b6a3d158aec1/regulations_to_the_act_on_customs_
duties_and_movement_of_goods_a pril17.pdf . 
2 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2008 -10-10-1132. 
3 Development of control and intelligence measures, including adaptation  to new requirements.  
4 Lovdata online information. Viewed at: https://lovdata.no/dokument/LTI/lov/2016 -12-20-115. 
5 In parallel with the transfer of responsibility of the import VAT to the  tax authorities regarding 
economic operators that are registered for VAT on 1 January 2017.  
6 Regjeringen online information. Viewed at: 
https://www.reg jeringen.no/contentassets/a51e3fb5c0b1446f8a1fd5aa9548553d/2017_tod.pdf . 
7 Lovdata online information. Viewed at: https://lovdata.no/dokument/LTI/forskrift/2014 -12-22-1915. 
8 It excl udes alcohol and tobacco products.  
9 Norwegian Customs online information. Viewed at:  https://www.toll.no/no/om -tolletaten/om -
oss/strategiplan/ .  WT/TPR/S/373 • Norway  
 
- 37 - 
 
  3.5.  Norway's revenues from customs duties amounted to NKr 3 billion in 2015 (Table 3.1). 
Although these revenues increased slightly during the review period, they remain small in terms of 
total government revenues, with customs duties amounting to about 0.2%.10 Import declarations 
far outnumber export decla rations and they reached 5.7 million in 2016, the highest on record. 
Norway has a relatively high failure rate, i.e. about 40% on document checks due to the 
goal-oriented selection of declarations where errors are expected (Table 3.1). Enforcement 
procedur es resulted in about 35,000 seizures per year and about NKr 22 million, on average, in 
IPR recovered funds. In July 2013, the Norwegian Customs was given more authority with respect 
to counterfeit goods. These provisions included increased penalties, exten ded retention limits, and 
gave right holders more enforcement possibilities.  
Table 3.1 Customs statistics, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Customs duties 
(NKr million)  2,877  2,882  2,980  3,068  3,287  3,383  
Import declarations  5,231,002  5,536,271  5,794,936  5,671,648  5,761,647  6,318,874  
Document checks on 
imports  154,707  145,922  143,098  133,494  131,143  141,878  
Failure rate on document 
checks (%)  33 36 37 40 37 38 
Physical inspections on 
imports  9,165  8,497  8,226  9,071  9,041  7,570  
Serious violations  183 185 229 198 109 106 
Export declarations  1,177,232  1,269,026  1,383,477  1,412,038  1,433,180  1,545,097  
Document checks on 
exports  22,379  23,405  20,689  20,713  19,711  21,740  
Physical inspections on 
exports  1,282  1,371  1,371  1,362  1,582  1,316  
Classification opinions 
issued within 90 days (%)  99.1 98 99.4 98.2 98.1 96.5 
Corrected amount in favour 
of the state after control 
(NKr million)  326 389 224 281 242 72 
IPR control (NKr million 
recovered)  18 16 31 35 20 13.2 
Seizures  35,879  35,729  34,570  34,155  34,908  37,498  
Source:  Customs Annual Reports, 2014 -16. Customs online information. Viewed at: 
https://www.toll.no/no/om -tolletaten/om -oss/arsrapport/ . 
3.6.  Norway's import procedures involve the submission of a customs declaration through its 
electronic system or the completion of the Single Administrative Document (SAD) along with the 
invoice, shipping  documents, and any licences or special provisions. However, the Single 
Administrative Document is only used as a fall -back procedure and for private persons. Customs 
declarations are generally 100% processed electronically through Norway's TVINN system, w ith 
paper declarations subsequently processed through it as well. Thro ugh a number of filters or 
risk-assessment criteria in TVINN, some declarations are selected for manual document control. If 
there are further uncertainties after a document control, the  shipment may be selected for physical 
inspection. TVINN also checks import values for the determination of duties to be paid (see also 
Section 3.1.1.1).  
3.7.  In 2018, Norwegian Customs plans to launch a pilot project for express customs clearance.11 
Express Cus toms is built on the premise that all relevant information will be submitted ahead of 
goods crossing the border, thus it will entail sending information before arrival of the transport 
vehicle, treatment of risk assessment before arrival, and electronic bo rder control. As part of this 
initiative, Customs is developing a new electronic platform for the submission of manifest 
information. The project is expected to be tested at one border crossing (Ørje) in 2018 and then 
evaluated with respect to how it can b e implanted at other border crossings.  
                                                
10 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20162017/id2514108/sec2#KAP11 . 
11 Norwegian Custom s online information. Viewed at: https://www.toll.no/no/bedrift/hva -er-
ekspressfortolling/ . WT/TPR/S/373 • Norway  
 
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  3.8.  According to Customs Regulations Section 3 -3, ships arriving to Norway from another 
country, should report a set of information on the specific voyage. The ship -notification should be 
submitted using an electronic no tification portal – SafeSeaNet No rway prior to arrival. The 
ship-notification should include information on the cargo on board (if any) and other information 
such as information on crew/passenger/ship stores. The reporting formalities apply to all ships.  
3.9.  Norway has an Authorized Economic Operator (AEO) programme but only for security -related 
matters and not for expedited customs procedures.12 However, the subject of AEO for customs is 
under discussion. To achieve AEO status, a firm is evaluated on its genera l background, financial 
solvency, accounting and logistics system, internal control, and safety requirements. The 
advantages of the AEO status are advanced notification, fewer controls, and priority if controlled. 
As of early 2018, 29 enterprises had AEO s tatus.   
3.10.   Norway operates a bonded warehouse scheme whereby there are four main types of 
warehouses, Types A, B, C, and D.13 Sections 4 -30 and 4 -31 of the Customs Act provide the basic 
rules for establishment and storage length while the Customs Regulations e xpand upon them. 
There are different responsibilities of the warehouse operators or traders depending on the type of 
warehousing arrangement; for example, type A allows for ordinary stocking only, whereas D allows 
for processing. Goods may be stored in bon ded warehouses indefinitely and any type of good may 
be stored so long as it is not a hazard. The use of bonded warehouses requires an application 
submitted by the user to Customs, which is then in charge of approving them. There are 
approximately 650 bond ed warehouses in Norway; a figure that has remained relatively stable 
over the review period.  
3.11.   A number of simplified or special schemes exist for goods in transit. Through the bonded 
warehouse scheme, Norway offers an authorized recipient scheme whereby go ods in transit can be 
received directly to the importer's warehouse. An importer must apply for this status and meet 
certain criteria in order to qualify. There is also an authorized sender scheme in which the sender 
can use a simplified transit procedure so that the goods and documentation do not have to be 
submitted to Customs at the departure point.  
3.12.   In terms of the right to appeal under the Customs Act, traders have the right to contest the 
customs authorities' decision within six months of the notificat ion pursuant to Section 12 -14 of the 
Customs Act. The Customs may require an administrative appeal before the matter is taken to the 
district courts. Traders have the right to appeal any decision made by one of the six regional 
customs authorities to the D irectorate of Customs. The decisions of the Directorate in appeals 
cases are final, unless it is the Directorate that has made the decision in the first place, in which 
case the decision can be appealed to the Ministry of Finance. Of the decisions made by the regional 
customs authorities in 2017, approximately 200 were contested and appealed to the Directorate.  
3.13.   Norway's Customs Act provides for free trade zones and ports but currently there are none 
and no plans to establish them.  
3.14.   Norway has two border ag reements, with Sweden and Finland, from 1959 and 1968 
respectively.14 The agreements simplify customs control and clearance, and for this reason aim at 
improving cooperation between the countries. They also have provisions for the establishment of 
control z ones along each side of the border in order to facilitate importation and exportation.  
3.1.1.1   Trade facilitation  
3.15.   Norway has been a strong supporter of the WTO's work on trade facilitation. In 
October  2015, Norway ratified the agreement which has prompted some ch anges in law and 
regulations. To allow for formal consultations with traders according to the Trade Facilitation 
Agreement (TFA) Article 2.2, a new Section 12 -15 was introduced in the Customs Act with effect 
from 2016. Some minor adjustments to the Customs  regulations were under consideration by the 
                                                
12 Norwegian Customs online information. Viewed at: https://www.toll.no/no/bedrift/aeo/ . 
13 Altinn online information. Viewed at: https://www.altinn.no/en/Start -and-Run-a-
Business/Operation/Export -and-import/Bonded -warehousing -in-Norway/ . 
14 Norwegian Customs online information. Viewed at: 
https://www.toll.no/no/verktoy/regelverk/avtaler/t ollsamarbeidsavtaler/ . WT/TPR/S/373 • Norway  
 
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  Ministry of Finance as of early 2018.15 Norway had been active in the negotiations on trade 
facilitation before the TFA's conclusion, continues to take an active interest in the TFA, and is a 
donor to the Trade F acilitation Agreement Facility (TFAF).16 Norway's financial contribution to the 
TFAF in 2015 and 2016 was NKr 30 million. As of February  2018, Norway had made one 
notification, pursuant to Articles 22.1 and 22.2 of the Agreement. Trade facilitation provisio ns are 
also introduced in several free trade agreements to which Norway is a party.  
3.16.   Norway has rules for advance rulings, i.e. binding tariff information (BTIs), binding origin 
information (BOIs), and fees or charges that may apply to imports or exports. T he rules are 
contained in the Customs Act, Section 12 -13, and the Customs Regulations, Section 12 -13-1 to 
10. Norway makes the binding tariff information (BTIs) available through the TASS database on its 
website.17 BTIs are valid for six years whereas BOIs are valid for three years. Customs can choose 
not to issue an advance ruling, and this decision cannot be appealed, however once an advance 
ruling is made, the ruling may be appealed, but not taken to court. However, if this advance ruling 
has been used as  the basis for another decision, then it may be brought before a district court. 
Requests for advance rulings are to be made in writing to the customs office where the importer is 
resident. The rules do not specify the period of time to issue an advance ru ling. 
3.17.   In terms of electronic systems, Norway continues to use TVINN and does not have a single 
window application as such. Norway is in the early stages of elaborating and digitalizing customs 
systems. For customs enforcement, Norway is developing TREFF wh ich will strengthen intelligence 
and improve information flow.  
3.18.   Norway does not maintain separate provisions for expedited shipments.  
3.1.1.2   Customs valuation  
3.19.   Norway's rules on customs valuation are contained in Section 7 of the Customs Act and 
further elaborated  in Section 7 of the Customs Regulations. There have been no changes to the 
Act as concerns customs valuation during the review period. The Regulations, as they pertain to 
customs valuation, underwent only minor changes with respect to certain duty -free im ports (see 
Section 3.1.3.5) and currency conversion rates, thus the main elements as they pertain to 
valuation methods have not changed.18 
3.20.   Section 7 of the Act provides for the determination of customs duty by volume or weight 
and by value (based on WTO pro visions). There are also special rules or procedures for goods that 
are re -imported after processing or repair, reduction of the calculation when goods are damaged 
or spoilt, for setting aside the declared basis of the calculation, and deferring the final 
determination of value.19 Sections 7 -10 through 7 -16 set out the hierarchical order of customs 
valuation methods per the Agreement on Implementation of Article VII of GATT 1994. Similarly, 
the regulations provide further guidance on many of the sections of the Act, often incorporating 
information from the WTO Agreement or its interpretive notes.  
3.21.   Norway values goods on a c.i.f. basis and the costs of transport, insurance and freight are 
to be added to the customs value if the price does not already include th em.20 The customs value 
must also be converted to Norwegian kroner using the Customs exchange rates that are published 
every week.21 According to the authorities, the transaction value method is used in the vast 
majority of cases. Norway has provisions for t reatment of interest charges through Customs 
Regulation Section 7 -18 which outlines that interest paid by the buyer under a written financing 
arrangement shall not be included in the customs valuation provided it is separate from the price 
actually paid or  payable. For valuation of carrier media bearing software for data processing 
equipment, Norway first determines if such item is a good or service, and in the case it is a good, 
the whole product is defined as a good and the customs value according the pri ncipal method will 
                                                
15 WTO online information. Viewed at: http://www.tfafacility.org/ratifications . 
16 WTO online information. Viewed at: http://www .tfafacility.org/norway . 
17 Norwegian Customs online information. Viewed at: http://tass.interpost.no/toll/TASSTollNo.jsf . 
18 Lovdata online information. Viewed at: https://lovdata.no/dokument/LTI/forskrift/2016 -06-29-848. 
19 Sections 7 -4, 7-5, 7-6, and 7 -20 of the Customs Act.  
20 Norwegian Customs online information. Viewed at: 
https://www.toll.no/no/bedrift/import/beregning/tollverdi/transaksjonsverdien --tolloven --7-10/. 
21 Norwegian Customs online information. Viewed at: https://www.toll.no/no/verktoy/valutakurser/ . WT/TPR/S/373 • Norway  
 
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  be the transaction value, that is the price actually paid or payable for the goods (carrier and digital 
content) when sold for export.  
3.22.   Norway last notified its domestic legislation on customs valuation to the WTO Committee on 
Customs Val uation in May 2009.22  
3.1.2   Rules of origin  
3.23.   Norway's rules of origin (preferential and non -preferential) are set out in the Customs Act 
and associated Customs Regulations (chapter 8). Amendments to the Act in 2013, implemented in 
2016, changed the rules for non -preferential and preferential origin, both for FTA and GSP 
preferential trade.23 The associated changes to the regulations were also implemented in 2016.24 
There have also been some other, relatively minor, clarifications made on origin rules during the 
review period. As such, the structure of the regulations as they pertain to origin has changed 
significantly during the review period (Box 3.1).  
Box 3.1 Outline of the main elements in the amended Customs Regulation s on 
preferential and non -preferential rules of origin  
Section 8 -4 Preferential rules of origin  
Rules of origin concerning free trade agreements (Section 8 -4 Part I)  
Section 8 -4-1  Originating products  
Section 8 -4-2  Requirements for physical or accounting segregation  
Section 8 -4-3  Proof of origin upon exportation  
Section 8 -4-4  Approved exporter  
Section 8 -4-5  Control of the proof of origin  
Section 8 -4-6  Supplier's declaration  
Section 8 -4-7  Preservation of documentation of origin  
Rules of origin for the GSP scheme (Section 8 -4, Part II)  
Section 8 -4-30  Definitions  
Section 8 -4-31  Conditions for preferential tariff treatment  
Section 8 -4-32  Products wholly obtained in a beneficiary country  
Section 8 -4-33  Sufficient working or processing - processing list  
Section 8 -4-34  Insufficient working or processing  
Section 8 -4-35  Cumulation  
Section 8 -4-36  One product - Unit of qualification  
Section 8 -4-37  Accessories, products in sets, neutral elements etc.  
Section 8 -4-38  Direct transport  
Section 8 -4-39  Exhibitions  
Section 8 -4-40  Re-importation of products  
Section 8 -4-41  Exemption from the rules of origin  
Section 8 -4-42  Proof of origin when exporting goods with GSP origin  
Section 8 -4-43  Proof of origin upon exportation of products of Norwegian origin to a GSP country  
                                                
22 WTO document G/VAL/N/1/NOR/2.  
23 Law No. 124 of 13 December 2013 and Law No. 220 of 4 March 2016. Lovdata online information. 
Viewed at: https://lovdata.no/dokument/LTI/lov/2013 -12-13-124 and 
https://lovdata.no/dokument/LTI/forskrift/2016 -03-04-220. 
24 Regulation No. 216 of 4 March 2016. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/LTI/forskrift/2016 -03-04-215. WT/TPR/S/373 • Norway  
 
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  Section 8 -6 Non -preferential rules of origin  
Section 8 -6-1  Originating products - definitions  
Section 8 -6-2  Products originating in Norway  
Section 8 -6-3  Products originating in another country  
Section 8 -6-4  Products wholly obtained in Norway  
Section 8 -6-5  Sufficient working or processing  
Section 8 -6-6  Insufficient working or processing  
Section 8 -6-7  One product - Unit of qualification  
Section 8 -6-8  Accessories, spare parts and tools  
Section 8 -6-9  Neutral elements  
Section 8 -6-10  Working or processing of products abroad before exportation from Norway  
Section 8 -6-11  Issuing a national proof of origin (Certificate of Origin) upon exportation  
Section 8 -6-12  Duty of confidentiality  
Section 8 -6-13  Control of the proof of origin  
Section 8 -6-14  Supplier's declaration  
Section 8 -6-15  Verification of the proof of origin  
Source:  Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2008 -12-17-
1502/KAPITTEL_8#KAPITTEL_8 . 
3.1.2.1   Non-preferential  
3.24.   Amendments to the non -preferential rules of origin removed th e provisions on wholly 
obtained  and substantial transformation from the text of the Act and created new Sections 8 -6-1 
to 8-6-15 in the Regulations (Box 3.1). The Act provides that Norway's non -preferential rules of 
origin apply to WTO MFN trade for goods not covered by a free trade agreement, and for the 
purposes of trade remedies.  
3.25.   The new rules on non -preferential origin, as contained in the regulations, provide for 
products originating in Norway and those originating in other countries. For each of these  
categories, the regulations explain the rules for wholly obtained goods and the rules for sufficiently 
worked or processed . The wholly obtained rules do not differ substantially from those that were 
removed from the Act, but the rules on substantial trans formation, or what has been termed 
"sufficient work or processing" have been further elaborated compared to the previous rules. Thus, 
under section 8 -6-5 of the Regulations, Norway now uses a change in HS sub -heading, at the six -
digit level, or value crite ria to determine origin for goods that are not wholly obtained. The 
relevant rules are as follows for products in HS chapters 2 -9725: 
 the value of the materials does not exceed 50% of the finished product's ex -works price;  
 production in which all used mate rials change subheading in the Harmonized System; or  
 the product is only supplied with software to make it operational and the value of the 
materials does not exceed 30% of the finished product's ex -works price.  
3.26.   The non -preferential rules also define specific processes that are insufficient to confer origin, 
neutral elements that are not to be taken into account when determining origin, and how 
accessories, spare parts, and tools are to be handled. The  remaining new elements for 
non-preferential origin  deal with procedural aspects for issuing certificates of origin, supplier's 
declaration of origin, control of the proof of origin, and verification of this proof of origin.26 
                                                
25 For goods in HS chapter 1, origin is determined  by where the animal was born.  
26 Sections 8 -6-11 to 8 -6-15. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2008 -12-17-1502/ KAPITTEL_8#KAPITTEL_8 . WT/TPR/S/373 • Norway  
 
- 42 - 
 
  3.1.2.2   Preferential  
3.27.   Norway has different rules of origin for preferential trade pursuant  to free trade agreements 
and for unilateral preferential regimes, i.e. GSP. The basic rules, or framework, as set out in the 
Customs Act, have not changed during the review period for preferential rules, but nearly all the 
related customs regulations have  been modified (Box 3.1). The section on origin rules for free 
trade agreements has been simplified and now mainly refers to the specific FTA agreements for 
origin determination. For GSP origin determination, the section maintains much of the structure of 
the previous regulations but many of the rules have been modified. There have also been changes 
to the section on documentary proof for the claims of preferential origin treatment, mostly as a 
consequence of the other changes.  
3.28.   For trade covered under free trade agreements, the revised regulations make clear that it is 
the provisions in those free trade agreements that determine the origin rules. Section 8 -4-1 of the 
Regulations provides the relevant rules by trade agreement: for trade with EEA, EFTA, Greenl and, 
and the EFTA agreements with Bosnia -Herzegovina and Montenegro, it is the Conventio n on 
Pan-Euro-Mediterranean Preferential Rules (PEM Convention) that is applied. For all other EFTA 
FTAs with third parties, it is the rules of origin as specified in the relevant protocol or annex that 
are applicable. Origin rules for these EFTA FTAs, in particula r for developing countries, often 
involve simpler rules, i.e. more use of change of tariff heading.  
3.29.   Similar to Norway's rules of origin, the PEM Convention provides origin rules for wholly 
obtained goods and for products that are sufficiently worked or pro cessed. The Convention 
provides a list for wholly obtained goods and an Annex II (listed by HS chapter) to determine 
whether products are sufficiently worked or processed.27 The criteria used in the Annex utilize 
three main criteria for the determination of  sufficiently worked or processed: value percentage, 
change of tariff heading, and specific rules. The PEM Convention also provides for bilateral and 
diagonal accumulation between the parties, and full accumulation between EEA partners.  
3.30.   Norway's GSP rules of origin continue to have nearly identical rules on wholly obtained with 
minor modifications to include aquaculture products and more stringent rules applied to vessels 
that are used to obtain or manufacture products from the sea. There are, however, more  changes 
to the rules for sufficient working or processing and for cumulation.  
3.31.   Section 8 -4-33 on sufficient processing has removed the main criteria of a change of tariff 
classification for origin determination. Instead, the previous secondary criterion of  using the 
processing list in Appendix 6 of the regulations has become the main origin determinant. This list 
is similar to that of the PEM Convention in structure but the origin confirming processes often 
differ.28 The alternative criteria of using a value  method if the processing criterion is not met is 
retained but with significant amendments, as it changes the level and adds a volume measure as 
well. This provision provides that non-originating materials may nonetheless be used in the 
manufacture of prod ucts in HS chapters 1 to 49 and 64 to 97 provided that the total value or 
weight of the materials does not exceed:  
 15% of the product's total weight for products in HS chapters 2 and 4 to 24 (except for 
processed fishery products under HS heading 16);  
 15% of the product's ex -works price for other products; and  
 the maximum value of non -originating materials laid down in the product specific rules 
for the relevant product are not exceeded (Appendix 6).  
3.32.   Rules on GSP cumulation have been changed to include regi onal cumulation for the South 
Asian Association for Regional Cooperation (SAARC) and for incorporating materials also from the 
European Union, Turkey, or Switzerland. In line with changes emanating from the European Union, 
Norway has also moved to a self -certification  scheme for GSP exporters. Since 1 January 2017 , 
this involves GSP exporters registering in the Registered  Exporter System (REX) for 
                                                
27 PEM Convention. Official Journal of the European Union, L 54, 26 Feb. 2013. Viewed at: http://eur -
lex.europa.eu/legal -content/EN/TXT/?uri=OJ:L:201 3:054:TOC . 
28 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2008 -12-17-
1502/KAPITTEL_22#KAPITTEL_22 . WT/TPR/S/373 • Norway  
 
- 43 - 
 
  self-certification.29 The system is being gradually phased in depending on the beneficiary country, 
with the tra ditional origin Form A operating in parallel for 12 months. As of 1 January 2017, the 
REX system applied to 38 countries or territories;30 from 1 January 2018 it applied to another 22 – 
the second set of beneficiaries31; and from 1 January 2019, it is expect ed to apply to the last set 
of beneficiaries.32  
3.1.2.3   Notification  
3.33.   Norway notified its existing rules of origin under the 2007 Customs Act and 2008 Customs 
Regulations to the WTO Committee on Rules of Origin in 2009, and subsequently notified the 
amendments to t hese rules in 2016.33 In 2017, Norway notified preferential rules of origin as they 
pertain to least developed countries pursuant to the 2015 Ministerial Decision.34 The last 
notification to the Committee for preferential rules of origin pursuant to free tra de agreements was 
in 2012 for the agreement between the EFTA States and Ukraine and the agreement between the 
EFTA States and Peru.35 Thus, there appear to be a number of preferential notifications 
outstanding.  
3.1.3   Tariffs  
3.34.   The Ministry of Finance has the autho rity to determine regulations for new tariffs or to 
change the current subdivisions in the Customs Tariff, i.e. the parliamentary resolution on customs 
duties for the relevant  budget period. The authority is delegated to the Directorate of Norwegian 
Custom s when the changes do not have a revenue, business or trade policy impact. The Customs 
Tariff is announced as a regulation in the Public Law Data Base and is usually applied from 
1 January to 31  December. The customs tariff contains the rates of duties for  MFN as well as 
preferential regimes, and also contains other information such as import and export control 
measures and tariff quotas. There are two columns for rates of duty, ordinary duties, i.e. MFN 
rates applied to all non -preferential imports, and du ties under free trade agreements, i.e. varying 
rates per the various agreements.  
3.1.3.1   Nomenclature  
3.35.   Norway's 2017 applied tariff schedule is in the HS2017 nomenclature, as introduced on 
1 January  2017. In addition to the HS changes proposed by the WCO, Norway regularly makes 
other, relatively small changes to its nomenclature each year. This is mostly in  response to the 
business community . In February each year, an invitation is sent to other governmental bodies 
and the trade organizations to propose amendments for the following year's customs tariff. In 
addition, the invitation is also published on the C ustoms website. The Directorate of Norwegian 
Customs then reviews these proposals and makes them available to the public for comment. 
Following the review, a recommendation is sent to the Ministry of Finance for approval.  Norway's 
bound schedule was last c ertified in the HS2007 nomenclature.36 As of August 2017, Norway had 
not submitted its proposed new WTO schedules containing the HS2012 or HS2017 changes, but it 
is currently under waiver for the HS2012 and HS2017 changes.37 
                                                
29 Norwegian Customs online information. Viewed at: https://www.toll.no/en/corporate/import/free -
trade/gsp ---generalized -system-of-preference/the -registered -exporter -system -the-rex-system -/. 
30 Angola, Burundi, Bhutan, Brazil, Democratic Republic of Congo, Central African Republic, Chad, 
Comoros, Congo, Cook Islands, Djibouti, Ethiopia, Equatorial Guinea, Guinea Bissau, India, Kenya, Kiribati, 
Kosovo, Laos, Liberia, Mali, Micronesia, Nauru, Nepal, Niue Island, Pakistan, Solomon Islands, Sierra Leone, 
Somalia, South Sudan, São Tomé and Príncipe, Thailand, Togo, Tonga, Timor Leste, Tuvalu, Yemen, and 
Zambia. Viewed at: https://www.toll.no/no/bedrift/import/tollfrihet/gsp/rex -systemet/ .  
31Afghanistan, Argentina, Armenia, Belarus, Bolivia, Cameroon, Côte d'Ivoire, Eritrea, Gambia, Guinea, 
Malawi, Maldi ves, Mauritius, Mozambique, Myanmar, Niger, Rwanda, Sri Lanka, Swaziland, Syria, South Africa, 
and Tanzania. Viewed at: https://www.toll.no/no/bedrift/import/tollfrihet/gsp/rex -systemet/ .  
32Bangladesh, Benin, Burkina Faso, Cape Verde, Cambodia, Haiti, Indonesia, Kyrgyzstan, Lesotho, 
Madagascar, Mauritania, Mongolia, Nigeria, Paraguay, Philippines, Samoa, Senegal, Tajikistan , Uganda, 
Uzbekistan, Vanuatu, and Viet Nam. Norwegian Customs online information. Viewed at: 
https://www.toll.no/no/bedrift/import/tollfrihet/gsp/rex -systemet/ .  
33 WTO docu ments G/RO/N/62 and G/RO/N/149.  
34 WTO document G/RO/LDC/N/NOR/1.  
35 WTO document G/RO/N/82 and G/RO/N/83.  
36 WTO document WT/Let/1097.  
37 WTO documents WT/L/998 and WT/L/999.  WT/TPR/S/373 • Norway  
 
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  3.1.3.2   Bound rates  
3.36.   Norway's bound rates have not undergone significant modification since the Uruguay Round, 
although during the review period there were small reductions in the bound rates for some 
plurilateral initiatives such as the ITA II and revised lists of pharmaceutical products.38 This h as 
slightly reduced the overall average by about 0.2%,  and 100% of tariff lines are bound. The bound 
rates provide significant tariff protection, for agriculture in particular, where many rates exceed 
50% or even 600%, and averages in certain sectors such as meat and dairy are above 300% and 
cereals above 200% (Table 3.2). Also, importantly, 57% of Norway's agricultural tariffs are bound 
in both ad valorem  and specific terms with the provision of "whichever is higher" allowing for very 
high levels of protec tion when for example a specific rate is used but its ad valorem  equivalent 
(AVE) exceeds the ad valorem  component, a situation that occurs in a number of cases. It is also 
noted that the bound rates provide a lot of flexibility as a significant gap, of ab out 100% or more 
on average, exists between applied and bound rates in many sectors, i.e. meat, dairy, cereals, 
coffee, tea, and cocoa.  
Table 3.2 Norway's bound tariff summary, 2018  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-
free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  7,179  30.4 0-630 88.5 46.5 16.1 
HS 01 -24 1,740  114.6  0-606 149.6  38.7 57.9 
HS 25 -97 5,439  3.7 0-630 16.2 49.0 2.8 
By WTO category        
WTO agricultural products  1,414  143.1  0-630 155.0  22.3 72.5 
Animals and products thereof  187 318.3  0-556 141.9  15.0 85.0 
Dairy products  37 326.2  223-453 80.4 0.0 100.0  
Fruit, vegetables, and plants  464 107.1  0-606 113.4  11.9 84.3 
Coffee, tea, and cocoa and  cocoa 
preparations  30 104.2  0-474 189.5  43.3 46.7 
Cereals and preparations  181 211.9  0-549 166.6  9.4 87.3 
Oils seeds, fats, oil and their 
products  183 90.7 0-363 104.9  27.3 56.8 
Sugars and confectionary  39 55.3 0-369 82.3 20.5 79.5 
Beverages, spirits and tobacco  83 74.9 0-424 142.3  53.0 47.0 
Cotton  5 0.0 0.0 0.0 100.0  0.0 
Other agricultural products, n.e.s.  205 67.9 0-630 119.0  46.3 44.9 
WTO non -agricultural 
products  5,765  3.1 0-344 9.2 52.5 2.3 
Fish and fishery products  414 4.4 0-344 31.5 96.6 2.7 
Minerals and metals  1,043  0.9 0-12 1.8 78.0 1.9 
Chemicals and photographic 
supplies  1,128  3.2 0-7.9 3.1 48.1 0.2 
Wood, pulp, paper and furniture  425 0.2 0-5 0.9 82.8 12.7 
Textiles  649 7.1 0-13.7 4.7 16.0 4.5 
Clothing  261 10.8 0.4-13.7 2.7 0.0 0.4 
Leather, rubber, footwear and 
travel goods  193 2.8 0-10 3.9 53.4 8.3 
Non-electric machinery  664 2.4 0-6 1.9 36.0 0.0 
Electric machinery  307 2.0 0-14 2.9 51.1 0.0 
Transport equipment  200 3.6 0-10 3.0 32.5 0.0 
Non-agricultural products, n.e.s.  445 1.9 0-10 2.1 47.4 0.0 
Petroleum  36 0.0 0.0 0.0 100.0  0.0 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the national tariff line level (8 -digit), excluding in -quota 
rates. Tariff schedule is based on HS2017. Ad valorem  equivalents (AVEs) were provided by the 
authorities. In case of unavailability, the ad valorem  part is  used for mixed rates.  
Source:  WTO Secretariat calculations based on tariff information provided by the authorities and the WTO 
IDB database.  
                                                
38 WTO documents WT/Let/1268 and WT/Let/1181.  WT/TPR/S/373 • Norway  
 
- 45 - 
 
  3.1.3.3   Applied  rates  
3.37.   About 85% of tariff lines are duty free and the lines subject to tariffs are in only a few 
sectors, i.e. agriculture, textiles and clothing, and a few fish product tariff lines. However, among 
the 15% of lines with tariffs, many have very high rates. Non -ad valorem  rates of duty are also 
highly prevalent, accounting  for about 10% of all tariff lines or a bout 50% of agricultural product 
lines. In terms of customs revenue, most of the revenue is from agricultural products, i.e. over 
two thirds, and about one third on industrial products. Most agricultural product revenue is 
generated from imports from the E uropean Union while most of the revenues on industrial 
products, i.e. textiles, are from developing countries.39 
3.38.   During the review period, the simple average tariff rate decreased slightly from 7.5% to 
6.9%, due to lower rates in agriculture while the avera ge rate in the industrial sector remained 
unchanged at 0.5% (Table 3.3). This is partially due to 114 agricultural tariff lines being 
autonomously liberalized during the period. The applied rates given in the customs tariff for 
agricultural products can be  considered as ceilings because many of the published rates are not 
applied in practice due to the many duty reductions (see Section 3.1.3.5).40 
3.39.   Furthermore, in the areas where tariffs are applied, the rates vary considerably: for 
agricultural products, eve n though over two fifths of lines are duty free, the simple average is 
37.1% and the standard deviation 76% (Table 3.4). In addition, tariffs of over 100% are not 
unusual in many agriculture sub -sectors i.e. meat, dairy, fruits and vegetables, cereals, bev erages 
and oilseeds, and other agricultural products. Certain sectors such as meat and dairy also stand 
out for their very high tariff averages for the sector, i.e. 101% and 105% respectively. The cereals 
and fruit and vegetable sectors have relatively hig h averages as well of 43% and 32% respectively 
(Chart 3.1). The products with the highest tariffs are those that are produced in Norway, whereas 
those not produced in Norway are often duty -free, i.e. bananas, citrus fruits, and coffee (see also 
Section 4.1 ).41  
3.40.   As of 1 January 2013, Norway switched from specific to ad valorem  duties on a number of 
agricultural products, in particular two tariff lines for cheeses, and four tariff lines for boneless beef 
and lamb meat.42 Ad valorem  duties were put in place to s trengthen the protection that had been 
gradually eroded in order to support local food production.43 As part of the same initiative, Norway 
also introduced a new tariff quota of 500 tonnes on beef steaks from GSP developing countries to 
ensure the continuat ion of beef imports with GSP preference.  
3.41.   Also, in 2013, Norway harmonized a number of textile and clothing tariffs, thus 
autonomously reducing the rates on approximately 90 tariff lines.44 This measure reduced the 
highest tariffs on textiles from 13.7% to 10.7%, and gave uniform tariffs to similar products while 
simplifying the tariff structure. The products concerned mainly baby clothes, blankets, bed linens, 
gloves, scarves, ties, shawls, curtains, towels, and sport clothing.  
3.42.   In 2015, Norway autonomously reduced tariffs for 114 tariff lines (HS 8 -digit) to zero. The 
tariffs involved were low or considered nuisance tariffs, i.e. below NKr 1 per kg, and provided only 
negligible tariff protection. The change was made to reduce bureaucracy and administrative 
costs.45 
                                                
39 Regjeringen online information. Viewe d at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20152016/id2455933/sec2#KAP10 . 
40 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20162017/id2514108/sec2#KAP11 . 
41 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20162017/id2514108/sec2#KAP11 . 
42 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/aktuelt/changes -to-
border -protection -for-selecte/id701321/ . 
43 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/aktuelt/changes -to-
border -protection -for-selecte/id701321/ ; Norwegian Agricultural Agency online information. Viewed at: 
https://www.landbruksdirektoratet.no/no/internasjonal -handel/import/tollkvoter/publikasjoner/importvernet -
for-ost. 
44 Regjeringen online informat ion. Viewed at: https://www.regjeringen.no/no/dokumenter/prop -1-ls-
20122013/id702583/sec27 . 
45 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/Prop -1-LS-
2014--2015/id2005476/sec33  and National Budget online information. Viewed at: 
http://www.statsbudsjettet.no/upload/Statsbudsjett_2015/dokumenter/pdf/skatt.pdf . WT/TPR/S/373 • Norway  
 
- 46 - 
 
  Table 3.3 Tariff structure of Norway, 2012 and 2018  
(%, unless otherwise indicated)  
  2012a 2018b Final boundb 
1. Bound tariff lines (% of all tariff lines)  100.0  100.0  100.0  
2. Simple average tariff rate 7.5 6.9 30.4 
 Agricultural products (WTO definition)  40.9 37.1 143.1  
 Non-agricultural products (WTO definition)  0.5 0.5 3.1 
 Agriculture, hunting, forestry and fishing (ISIC 1)  28.2 24.4 73.8 
 Mining and quarrying (ISIC 2)  0.0 0.0 0.1 
 Manufacturing (ISIC 3)  5.8 5.2 26.3 
3. Duty-free tariff lines (% of all tariff lines)  83.5 85.2 46.5 
4. Simple average rate of dutiable lines only  54.7 55.7 57.1 
5. Tariff quotas (% of all tariff lines)  0.4 1.0 1.0 
6. Non-ad valorem  tariffs (% of all tariff lines)  11.4 9.7 16.1 
7. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  3.1 2.8 3.3 
8. Domestic tariff peaks (% of all tariff lines)c 5.9 5.9 9.7 
9. International tariff peaks (% of all tariff lines)d 6.6 6.4 11.3 
10. Overall standard deviation of applied rates  35.0 34.7 88.5 
11. Nuisance applied rates (% of all tariff lines)e 1.1 0.2 5.7 
a The 2012 tariff is based on HS2012 nomenclature, consisting of 7,207 tariff lines (8 -digit).  
 AVEs were estimated based on Norway's 2010 import data (8 -digit).  
b The 2018 tariff is based on HS2017 nomenclature, consisting of 7,179 tariff lines (8 -digit).  
 AVEs were provided by the authorities.  
 In case of unavailability, the ad valorem  part is used for mixed rates.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.   
Note:  All tariff calculations exclude in -quota lines.  
Source:  WTO Secretariat calculations based on tariff information provided by the authorities and the WTO 
IDB database.  
Table 3.4 Norway's applied MFN tariff summary, 2018  
 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  7,179  6.9 0-555 34.7 85.2 9.7 
HS 01 -24 1,740  28.6 0-555 66.9 54.9 39.0 
HS 25 -97 5,439  0.7 0-495 10.0 94.9 0.3 
By WTO category        
WTO agricultural products  1,414  37.1 0-555 75.7 43.8 48.5 
Animals and products thereof  187 101.4  0-555 126.0  16.0 78.6 
Dairy products  37 104.5  18.5-443 129.6  0.0 83.8 
Fruit, vegetables, and plants  464 31.6 0-281.7  57.1 49.6 40.3 
Coffee, tea, and cocoa and cocoa 
preparations  30 10.7 0-77.2 21.2 66.7 33.3 
Cereals and preparations  181 43.4 0-464.4  70.6 21.5 72.4 
Oils seeds, fats, oil and their 
products  183 12.8 0-158.4  26.0 43.2 42.1 
Sugars and confectionary  39 14.2 0-92.8 25.7 41.0 59.0 
Beverages, spirits and tobacco  83 20.5 0-374 57.3 72.3 27.7 
Cotton  5 0.0 0.0 0.0 100.0  0.0 
Other agricultural products, n.e.s.  205 19.4 0-495 62.7 68.3 27.8 
WTO non -agricultural products  5,765  0.5 0-197.2  3.5 95.4 0.2 
Fish and fishery products  414 0.8 0-197.2  10.8 98.1 1.9 
Minerals and metals  1043 0.0 0.0 0.0 100.0  0.0 
Chemicals and photographic 
supplies  1128 0.0 0.0 0.0 100.0  0.0 WT/TPR/S/373 • Norway  
 
- 47 - 
 
   Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Wood, pulp, paper and furniture  425 0.0 0.0 0.0 100.0  0.0 
Textiles  649 0.5 0-10.7 2.2 94.9 0.2 
Clothing  261 7.9 0-10.7 3.8 13.8 0.0 
Leather, rubber, footwear and 
travel goods  193 0.0 0.0 0.0 100.0  0.0 
Non-electric machinery  664 0.0 0.0 0.0 100.0  0.0 
Electric machinery  307 0.0 0.0 0.0 100.0  0.0 
Transport equipment  200 0.0 0.0 0.0 100.0  0.0 
Non-agricultural products, n.e.s.  445 0.0 0.0 0.0 100.0  0.0 
Petroleum  36 0.0 0.0 0.0 100.0  0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  683 24.4 0-555 72.6 67.6 23.7 
ISIC 2 - Mining and quarrying  106 0.0 0.0 0.0 100.0  0.0 
ISIC 3 - Manufacturing  6,389  5.2 0-495 27.7 86.9 8.3 
By stage of processing        
First stage of processing  1,135  15.3 0-555 57.8 77.7 17.1 
Semi-processed products  2,100  0.7 0-119.3  6.7 97.2 2.8 
Fully processed products  3,944  7.8 0-495 34.4 81.0 11.2 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the national tariff line level (8 -digit), excluding in -quota 
rates. Tariff schedule is based on HS2017. AVEs were provided by the authorities. In case of 
unavailability, the ad valorem  part is used for mixed rates.  
Source:  WTO Secretariat calculations based on tariff information provided by the authorities and the WTO 
IDB database.  
Chart 3.1 MFN applied tariff averages by WTO product groups, 2018  
 
Note:  Including AVEs for non -ad valorem  rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.4   Tariff  quotas (TQs)  
3.43.   Norway maintains a number of TQs pursuant to WTO provisions, FTAs, and preference 
regimes; it can also offer quotas unilaterally on its own accord. The unilateral quotas are either put 
in place on a yearly basis to supply the domestic market, or the result of political decisions; the 
yearly quotas are open to all importers. Section 9 -4 of the Customs Act provides the general 
framework for TQs, while several regulations give further guidance on TQs, the main one being 
Regulation No. 1132 of 10 October 2008 on  the Distribution of Tariff Quotas for Agricultural 
0% 20% 40% 60% 80% 100% 120%TextilesFish and fishery productsClothingWTO non-agricultural productsCottonCoffee, tea, and cocoa and cocoa preparationsOils seeds, fats, oil and their productsSugars and confectionaryOther agricultural products, n.e.s.Beverages, spirits and tobaccoFruit, vegetables, and plantsCereals and preparationsAnimals and products thereofDairy productsWTO agricultural productsTotalChart 3.[Norway] MFN applied tariff averages by WTO product groups, 2018
Source:  WTO Secretariat calculations, based on data provided by the authorities.Note:   Including AVEs for non -ad valorem rates.WT/TPR/S/373 • Norway  
 
- 48 - 
 
  Products (for WTO and EU quotas).46 TQs can provide zero rates of duty or reduced rates of duty. 
There were about 90 tariff quotas in place in 2016 (Tables 3.5 and 3.6, and Section 4.1) with a 
few TQs bein g merged during the review period.  
3.44.   MFN tariff quotas are administered mainly by auction. Section 9 -4 of the Customs Act 
provides that auctioning is the default method assuming no agreement prevents its use. Other 
methodologies  that can be used are provided  for in the regulat ions, notably first -come, 
first-served, and by historical import levels. In 2016, NKr 194 million was collected through the 
auctioning of quotas.47 
Table 3.5 MFN tariff quotas, 2015 and 2016  
HS code  Product  Quota 
size Quota 
imports Quota fill rates  Auction amountb Total 
imports  2016  2016  2016  2015  2016  2015  
Tonnes  Tonnesa % % NKr/  
kg NKr/  
kg Tonnes  
01.06.1910,  
02.08.9021  Live reindeer and 
reindeer meat  - - - - - - 100 
pieces  
02.02  Meat of bovine 
animals, frozenc 1,084  1,071  99 99 50.01  44.97  1,666  
02.03.2101  Meat of swine, 
frozen  1,381  5 - 4 0.01 0.01 13 
02.03.1109/  
1209/1909/  
2109/2209/  
2909; 
02.08.1000/  
9030/9094/  
ex. 9099  Other game meat  250 240 96 72 10.86  8.16 244 
02.04.1000/  
2100/2200/  
3000/4100/  
4200/4300/  
5000 Meat of sheep or 
goats3 206 164 80 23 14.51  27.81  874 
02.07.1200  Chicken meat, 
frozen  221 69 31 4 0.02 0.50 296 
02.07.2500  Turkey meat, 
frozen  221 - - - 0.01 0.01 - 
02.07.4200/  
5200/6010  Meat and edible 
offal of ducks, 
geese, and 
guinea fowl  221 152 69 82 0.04 4.51 155 
02.08.9046/  
9047/9048  Deer meat3 200 193 96 99 17.01  42.04  140 
02.08.9043/  
9044/9045  Elk meat3 100 83 83 97 10.70  9.56 74 
HS ch. 2 and 
16 Meat for fairs  35 8 24 20 - - - 
HS ch. 2 and 
16 Halal meat  30 29 98 89 - - - 
HS ch. 2 and 
16 Kosher meat  15 6 41 - - - - 
04.05.1000  Butter  575 366 64 59 3.16 0.77 372 
04.07.2100  Eggs from 
chickens  1,295  409 32 5 0.04 0.01 697 
07.04.9013/  
9020 White cabbage  134 88 66 100 0.01 0.01 1,375  
07.04.9040  Red cabbage  134 14 10 38 0.01 0.01 366 
ex08.08.1011  Apples 01.08 –
30.11  750 735 98 100 4.05 4.22 8,898  
                                                
46 Regulation No. 1723 of 22 December 2005. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2005 -12-22-1723; Regulation No. 1424 of 20 December 2012. 
Lovdata online information. Viewed at: https://lovdata.no/dokument/ SF/forskrift/2012 -12-20-1424; Regulation 
No. 1132 of 10 October 2008. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2008 -10-10-1132?q=tollkvoter .  
47 Regjeringen online information. Viewed at: https://www.regjeringen.no /no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec2?q=gsp#KAP11 . WT/TPR/S/373 • Norway  
 
- 49 - 
 
  HS code  Product  Quota 
size Quota 
imports Quota fill rates  Auction amountb Total 
imports  2016  2016  2016  2015  2016  2015  
Tonnes  Tonnesa % % NKr/  
kg NKr/  
kg Tonnes  
ex08.08.1011  Apples 01.11 –
30.11  250 96 38 32 4.07 4.22 3,407  
ex08.08.1011  Apples 01.05 –
31.07  7,000  6,271  90 84 0.51 0.40 14,236  
08.08.3020  Pears  250 250 100 100 3.97 3.97 5,122  
08.11.1000  Strawberry 
preserves  1,700  1,698  100 99 - - 5 100  
ex. 
08.11.2019,  
08.11.2091  Raspberry 
preserves  750 745 99 100 - - 2,510  
07.13.1001,  
10.01.9900,  
10.02.9000,  
10.03.9000,  
10.04.9000.  
10.05.9010,  
10.07.9010,  
11.03.1310,  
12.14.1000,  
15.20.0010,  
17.03.1010/  
9010,  
23.02.1010/  
3000/4090, 
23.03.2010  Commodities  205,000  202,799  99 97 0.01 0.01 - 
10.01.1900/  
9900,  
10.02.9000,  
10.08.4000/  
5000/6000/  
9000 Feed grains  162,000  156,183  96 97 0.01 0.01 - 
12.01.9010,  
12.05.1010/  
9010 Oilseeds  10,000  7,518  75 28 0.01 0.01 - 
12.14.9091  Hay (outside EU)  500 - - - - 0.01 - 
16.02.3101  Turkey roll  20 15 75 21 0.33 0.28 15 
ex16.02.5009  Corned beef  200 60 30 25 0.03 0.01 123 
- No allocation by auction.  
a Generally provided in tonnes, but live animals are in pieces and plants in value (NKr million).  
b Not distributed by auction.  
c Calculated with bone in meat.  
Source:  Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec31?q=gsp . 
3.45.   Norway maintains 29 MFN quotas open to all importers, most of these pursuant to WTO 
commitments (Table 3. 4). Many of the quotas have high fill rates, i.e. beef, deer and elk meat, 
pears, and fruit preserves; but others such as eggs, chicken meat, red cabbage, and pork are 
underutilized. According to the authorities, utilization rates typically vary due to domestic 
production  and demand. There have not been many significant changes to the MFN quotas during 
the review period except for the quotas pertaining to deer and other wild game, elk, and wild bird 
game. In 2013, the Regulations on the Distribution of Tariff Quotas for Ag ricultural Products were 
amended to change the product mix under these categories and increase certain quota amounts. 
The new categories of deer, elk, and other wild game were created with an increase in the quota 
amount for deer. At the same time, Chapter  IV of the regulation was repealed as it pertained to 
direct quotas allocated to a few processors of game meat, thereby also making them available to 
all registered companies through auction.48 During the review period, unilateral nationally 
                                                
48 Regulation No. 1100 of 16 November 2012. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/LTI/f orskrift/2012 -11-16-1100. WT/TPR/S/373 • Norway  
 
- 50 - 
 
  determined quot as were in place for halal meat, kosher meat, grains, oilseeds, commodities, and 
fruit preserves.49 
3.46.   Preferential tariff quotas are determined by the applicable regime, i.e. the EEA, FTA or GSP 
agreements. Norway had about 60 preferential quota categories in  place in 2016, about two thirds 
of which pertained to the European Union, the main source for most of Norway's agricultural 
imports (Table 3.6). Most quotas have high fill rates, but a few have no imports, i.e. Egypt, 
Canada, and Ukraine, which again can be attributed to domestic production and demand. A few 
new or expanded quotas, e.g. GSP beef and molasses and EFTA quotas on cheese and meat, have 
been put in place or amended since the last Review due to revision of the EFTA treaty and to 
improve access u nder GSP. A number of quota volumes, in particular for the European Union, have 
been increased due to the conclusion of new negotiations under the EEA in 2010  (implemented in 
2012) and in 2017 (expected to be implemented in 2019 ). The latest negotiations a re expected to 
include one new quota and increases in quota volumes for several existing quotas.  
Table 3.6 Preferential tariff quotas, 2015 and 2016  
Agreement  HS code  Product  Quota 
size Quota 
imports  Quota fill 
rates  Auction 
amountb Total 
imports  2016  2016  2016  2015  2016  2015  
Tonnes  Tonnesa % % NKr/  
kg NKr/  
kg Tonnes  
European 
Union  02.01.1000/  
2001/2002/  
2003/2004;  
02.02.1000/  
2001/2002/  
2003/2004  Beef 900 900 100 98 20.50  23.00  16,636  
02.03.1101/  
2101 Meat of swine  600 598 100 99 5.55 3.41 603 
02.06.4100  Pig livers, 
frozen  350 - - 36 0.01 0.01 - 
02.07.1100/  
1200/2400/  
2500 Meat and 
edible offal of 
chicken or 
turkey  800 629 79 73 3.12 3.00 704 
02.07.4401  Meat and 
edible offal of 
duck 100 12 12 21 0.01 0.32 14 
02.10.1101  Ham or pork  400 399 100 100 28.60  10.16  426 
04.06  Cheese, total  7,200  7,199  100 99 - - 11,261  
  Historic  4,500  4,497  100 99 - - - 
  Auction  2,700  2,702  100 100 25.56  25.52  - 
04.07.1100/  
2100/9000  Eggs 290 249 86 48 2.01 0.02 859 
05.11.9911/  
9921 Blood powder  350 - - 99 - 0.01 644 
06.02.1021/  
1024 Root cuttings 
of Begonia 
and 
Pelargonium  NKr 
2 million  NKr 
2 million  100 100 - - NKr 
8.2 million  
06.02.9031  Green potted 
plants  NKr 
4 million  NKr 
4 million  100 100 - - NKr 
6.3 million  
ex06.02.904 ; 
06.02.9044  Flowering 
potted plants  NKr 
8 million  NKr 
8 million  100 100 - - NKr 
59.5 million  
06.02.9091  Grass in rolls  NKr 
4 million  NKr 
1.9 million  49 4 - - NKr 
2.2  million  
07.01.9022  New potatoes  
01.04 – 14.05  2,500  - - 10 0.01 0.01 581 
07.05.1112/  
1122 Iceberg 
lettuce  
01.03 – 30.11  600 95 16 60 0.07 1.16 5,084  
07.05.1112  Iceberg 
lettuce  
01.03 – 31.05  400 321 80 85 0.21 0.27 3,536  
         
                                                
49 The TQs for halal and kosher meat were put in place in 2015.  WT/TPR/S/373 • Norway  
 
- 51 - 
 
  Agreement  HS code  Product  Quota 
size Quota 
imports  Quota fill 
rates  Auction 
amountb Total 
imports  2016  2016  2016  2015  2016  2015  
Tonnes  Tonnesa % % NKr/  
kg NKr/  
kg Tonnes  
07.12.9011  Potatoes, 
dried 300 123 41 - 0.01 0.01 146 
ex08.08.1011  Apples 01.05 
– 31.07  2,000  1,657  83 98 0.32 0.67 6,170  
08.10.1023/  
1024 Strawberries  300 276 92 100 5.60 5.52 1,607  
08.11.1000  Strawberry 
preserves  
(2,200t)  2,200  2,200  100 95 - - 4,509  
ex08.11.201 ; 
08.11.2091  Raspberry 
preserves  
(950t)  950 943 99 94 - - 1,849  
ex.08.11.2019;  
08.11.2093;  
9003;  
20.09.8911;  
8919;  
8993 Black 
current/che rry 
concentrate  340 337 99 95 - - 670 
08.12.1000  Cherries  100 - - - - - - 
10.01.1900  Durum wheat 
for pasta  5,000  1,150  23 - 0,01 0,01 1,362  
10.02.1000  Rye for 
sowing  1,000  801 80 100 0,01 0,36 823 
10.05.9010  Maize for feed  10,000  9,998  100 100 0.04 0.01 40,519  
11.03.1310  Maize for feed  10,000  9,996  100 100 0.01 0.10 28,633  
12.09.2300  Fescue seed  75  74 99 97 0.02 0.01  
12.09.2300  Fescue seed 
for lawn  400  385 96 100 0.02 3.72  
12.09.2400  Kentucky blue 
grass seed  50  44 87 100 0.02 5.01  
12.09.2400  Kentucky blue 
grass seed for 
lawn 200 182 91 93 0.06 1.24  
12.09.2500  Rye grass 
seed 700 641 92 100 0.01 14.14  671 
12.14.9091  Hay 35,000  10,891  31 35 0.01 0.01 10,963  
16.01.0000  Sausages  400 363 91 88 54.51  50.02  1,268  
16.02.5001  Meat balls  200 138 69 64 2.10 1.00 145 
16.02.4910  Bacon crisp  350 111 32 31 0.01 0.03 110 
20.05.2091  Potatoes, 
partially 
processed for 
snacks  3,000  1,673  56 59 0.01 0.01 1,673  
20.09.7100/  
7900 Apple 
concentrate 
for industrial 
purposes  3,300  3,299  100 99 3.70 3.03 8,199  
ex20.09.8999  Blueberry 
concentrate  200 71 35 32 0.01 0.01 339 
EFTA 02.10.2000  Dried beef  10 - 1 - 0.01 0.04 - 
04.06  Cheese  200 152 76 89 7.06 14.02  149 
16.01.0000  Sausages  10 - - - 0.02 0.10 - 
20.09.7900  Apple juice  400 - - - 0.01 0.01 - 
Iceland  01.01.2100/  
2902/2908  Icelandic 
horses  200 
pieces  34 pieces  17 23 - - 51 pieces  
02.04  Lamb  600 547 91 98 - - 547 
Namibia/  
Botswana  02.01; 02.02  Beef 2,700  2,700  100 100 - - 3,189  
02.01; 02.02  Beefc 500 500 100 100 15.80  9.09 3,189  
Swaziland  02.01; 02.02  Beef 500 488 98 100 - - 500 
Botswana, 
Namibia or  
Swaziland  02.04.1000/  
2100/2200/  
2300/3000/  
4100/4200/  
4300 Lamb  400 139 35 40 - - 139 
GSP 02.01.3001;  
02.02.3001  Boneless beef  500 - - 44 - - 4,211  
04.09.0000  Honey  192  173 90 100 4.11 11.40  888 WT/TPR/S/373 • Norway  
 
- 52 - 
 
  Agreement  HS code  Product  Quota 
size Quota 
imports  Quota fill 
rates  Auction 
amountb Total 
imports  2016  2016  2016  2015  2016  2015  
Tonnes  Tonnesa % % NKr/  
kg NKr/  
kg Tonnes  
Ex16.02.4100;  
16.02.5009  Canned ham 
and tongue  150 - - - 0.01 0.01 - 
17.03.1010/  
9010 Molasses  40,000  40,000  100 100 0.03 0.01 52,750  
20.05.4003/  
4009/ex5901  Canned peas 
and beans  350  75 21 16 0.01 0.01 81 
ex20.05.9908  Canned 
vegetable 
mixtures  150 24 16 20 0.01 0.01 890 
Egypt  07.01.9028  Potatoes  1,310  - - - - - - 
07.08.1000  Peas 60 - - - 0.01 - 15 
Canada/  
Ukraine  10.01.1900  Durum wheat  10,000  - - - 0.01 0.01 - 
- No allocation by auction.  
a Generally provided in tonnes, but live animals are in pieces and plants in value (NKr million).  
b Not distributed by auction.  
c Calculated with bone in meat.  
Source:  Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec31?q=gsp . 
3.1.3.5   Duty reductions  or sus pensions  
3.47.   Norway  has several regimes for the reduction of certain tariff items mostly pertaining to 
agricultural products. The Customs Act's Section 9 -2 provides the general framework for general 
reductions of tariffs on agricultural products and Section 9 -3 for individual requests for tariff 
reductions in agriculture and processed agricultural products. Section 9 -5 provides for any other 
reduction in tariffs. These provisions are further elaborated in several regulations. The number of 
general agricultural tariff reductions was between 250 and 350 each year during the review period 
and remained relatively constant. Individual requests for tariff reductions were far more 
numerous, about 18,000 in 2012, and increased to about 21,000 in 2017 (Table 3.7).  
Table  3.7 Overview of use of tariff reductions, 2012 -17 
Number  
 2012  2013  2014  2015  2016  2017  
General tariff reductions (FAT)  298 322 278 258 246 264 
Individual tariff reductions – Regulation on 
Administrative Tariff Reductions for Agricultural 
Products (FAT)  3,424  3,573  3,985  3,774  3,735  3,811  
Individual tariff reductions – Regulation on the 
Determination of Reduced Rates of Duty on 
Imports of Processed Agriculture Agricultural 
Products  (RÅK)  15,575  19,742  15,500  15,362  18,673  18,530  
Processing abroad  206 232 275 239 231 245 
Domestic processing  16 38 18 19 49 60 
Source:  Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec31?q=gsp , https://www.regjeringen.no/no/dokumenter/prop. -1-ls-ls0-
20162017/id2514108/sec34 , https://www.regjeringen.no/no/dokumenter/prop. -1-ls-ls0-
20152016/id2455933/sec37#VED3 , https://www.regjeringen.no/no/dokumenter/Prop -1-LS-2014--
2015/id2005476/sec32 , https://www.regjeringen.no/no/dokumenter/prop -1-ls-
20132014/id740943/sec39  and https://www.regjeringen.no/no/dokumenter/prop -1-ls-
20122013/id702583/sec26 . 
3.48.   The Regulation on Administrative  Tariff Reductions for Agricultural Products (FAT) provides 
the scope for tariff reductions with the overall go al of securing the supply of Norwegian products 
while also preventing market disturbances.50 It has three types of reductions: general tariff 
reductions, individual tariff reductions, and specific tariff reductions for certain products, 
                                                
50 Regulation No. 1723 of 22 December 2005. Lovdata online information. Viewed at: 
https://lovd ata.no/dokument/SF/forskrift/2005 -12-22-1723. WT/TPR/S/373 • Norway  
 
- 53 - 
 
  i.e. cereals, flours , reindeer, oilseeds, etc. These tariff reductions are implemented as tariff quotas 
as they are limited. The general tariff reductions are applied to goods in the target price system 
(Appendix 1), i.e. meat, dairy, fruits and vegetables, and are granted to  all importers. Individual 
tariff reductions are much more varied and apply to every HS chapter for agricultural products. 
Individual tariff reductions must be applied for by a Norwegian registered company and are 
generally granted for a specific product f or a defined time -period. Although they can be subject to 
quantity limits, i.e. quotas, they rarely are.  
3.49.   A similar Regulation, the Determination of Reduced Rates of Duty on Imports of Processed 
Agricultural Products (RÅK),  provides for reduced rates on processed agricultural products if 
covered in Appendix 1.51 This regulation covers certain dairy products, processed cereals and flour 
products, and confectionery and snacks. Duty rates are determined by the product designatio n in 
the Annexes, i.e. by tariff classification, whereby either matrix or declaration methods are applied 
based on the duty regime, i.e. EEA, FTA, GSP, or MFN imports; or a standard fixed rate is used. 
Whichever the methodology, the duty is based on the ra w material content of the finished 
agricultural product.  
3.50.   Since 2007, regulations have been in place for special tariff reductions in order to process 
certain agricultural products abroad.52 When re -imported, the goods face a reduced tariff generally 
based on the proportion of foreign goods incorporated abroad. Different provisions apply for 
industrially processed agricultural products, and the rules for meat and dairy products require that 
the business has been awarded a quota at auction. The regulation req uires that the exported 
goods are incorporated in the imported goods and that importation takes place within one year of 
the exportation of the product. The use of this provision is relatively minimal, averaging about 
200 per year during the review period (Table 3.6).  
3.51.   Section 7 -4-1 of the Customs Regulations provides for relief of customs duties for certain 
textile products53 imported from abroad if the company produces the same textile products in 
Norway and is registered with the Register Centre (Brønnøysu ndregisteret).54 Duty-free 
importation must be applied for beforehand to Norwegian Customs with supporting materials.  
3.52.   Another section of the Customs Regulations covering preferential rules of origin 
(Section  8-4-50) provides for the reduction or eliminatio n of tariffs on certain horticultural 
products55 from the European Union under special conditions. These are implemented through 
yearly quotas administered by the customs authorities, pursuant to Article 19 of the EEA 
Agreement and earlier free trade agreem ents with the European Union (see also Section 3.1.3.4 
on tariff quotas).  
3.1.3.6   Preferential  tariffs  
3.53.   Norway has preferential tariffs for imports from certain countries pursuant to its reciprocal 
or unilateral preferential agreements. The percentage of duty -free lines varies by agreement and 
ranges from 89% to 100% of total tariff lines (Table 3.8). As also reflected in the MFN tariff 
profile, significantly  greater tariff protection remains in the agricultural sector compared with the 
non-agricultural sector in pr eferential agreements. Generally less than 50% of agricultural tariff 
lines are duty free , except for a few FTAs and a few GSP categories. Nearly all non -agricultural 
tariff lines are duty free under Norway's preferential regimes.  
3.54.   Developments  during the p eriod include a general overall reduction in the simple average 
tariff and a slightly higher percentage of duty -free lines for FTA and GSP partners. This reflects the 
overall reduction in MFN tariffs and the continued implementation of preferential rates u nder the 
                                                
51 Regulation No. 1424 of 20 December 2012. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2012 -12-20-1424. 
52 Regulation No. 580 of 1 June 2007. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2007 -06-01-580. 
53 Goods under HS headings: 61.01 to 61.06, 61.10, 61.12, 61.13, 62.01 to 62.06, 62.10, 62.11, 61.05 
to 61.09, 61.12, 62.05 to 62.08, 62.10 to 62.12, 61.11, 61.13 to 61.17, 62.09, 62.13 to 62.17.  
54 Norwegian Customs online information. Viewed at: 
http://www.toll.no/contentassets/eb096d765fd3460c9415b6a3d158aec1/regulations_to_the_act_on_customs_
duties_and _movement_of_goods_april17.pdf . 
55 Cuttings, unrootened, for horticultural purposes; certain pot plants, in flower; green pot plants; and 
grass in rolls or plates (lawn).  WT/TPR/S/373 • Norway  
 
- 54 - 
 
  agreements. For GSP preferential tariffs, a new category of lower middle income countries56 was 
created and they were given improved preferences during the review period. In the event of a 
change of income category, transitional arrangements apply.  
Table 3.8 Tariffs under preferential agreements, 2 018 
 Total  
WTO agriculture  WTO 
non-agriculture   
Average 
(%) Duty -
free 
lines 
(%)a Preferential 
tariff rate 
(%)b 
 duty 
= 
zero duty 
> 
zero Average 
(%) Duty -
free 
lines 
(%)a Average 
(%) Duty -
free 
lines 
(%)a 
MFN applied duty rates  6.9 85.2 n.a. n.a. 37.1 43.8 0.5 95.4 
Albania  5.7 89.5 4.3 1.7 33.5 46.7 0.0 100.0  
Bosnia and Herzegovina  5.5 89.8 4.6 2.0 32.2 48.2 0.0 100.0  
Canada  5.7 89.5 4.3 1.8 33.8 46.9 0.0 100.0  
Chile 5.6 89.4 4.2 1.8 33.0 46.5 0.1 99.9 
Colombia  4.8 90.3 5.1 8.5 28.2 51.1 0.0 99.9 
Costa Rica  5.2 89.8 4.5 3.3 30.8 48.3 0.0 99.9 
EEA (excluding Switzerland)  5.7 89.3 4.1 1.7 33.2 46.0 0.1 99.9 
EEC 5.2 90.0 4.8 2.1 30.6 49.7 0.1 99.9 
EFTA 5.6 89.3 4.1 2.0 33.2 45.8 0.0 100.0  
Egypt  5.6 89.4 4.2 2.1 32.5 46.7 0.1 99.9 
Faroe Islands  6.4 89.0 3.8 0.1 36.8 44.4 0.0 100.0  
GCC 5.8 89.4 4.1 1.5 34.0 46.3 0.0 99.9 
Georgia  5.3 90.2 4.9 2.5 31.2 50.1 0.0 100.0  
Greenland  5.4 89.7 4.4 2.6 31.7 47.6 0.0 100.0  
Hong Kong, China  5.8 89.3 4.1 1.5 34.1 46.0 0.0 99.9 
Israel  5.6 89.4 4.2 2.7 33.0 46.5 0.1 99.9 
Jordan  5.7 89.3 4.1 2.2 33.4 45.9 0.1 99.9 
Korea, Republic of  5.7 89.5 4.3 2.0 33.5 47.1 0.0 99.9 
Lebanon  5.7 89.3 4.0 1.6 33.2 45.8 0.1 99.9 
Mexico  6.4 89.2 3.9 0.6 36.4 45.3 0.1 99.9 
Montenegro  5.8 89.3 4.1 1.7 34.0 45.8 0.0 100.0  
Morocco  5.6 89.5 4.2 3.5 32.9 46.8 0.1 99.9 
Palestinian Authority  5.6 89.3 4.1 2.3 33.0 46.2 0.1 99.9 
Panama  5.2 89.8 4.6 3.5 30.7 48.4 0.0 99.9 
Peru 4.8 90.3 5.1 8.6 28.0 51.1 0.0 100.0  
SACU  4.6 90.5 5.2 8.7 26.9 51.9 0.0 99.9 
Serbia  5.7 89.5 4.2 2.2 33.5 46.6 0.0 100.0  
Singapore  5.6 89.5 4.3 1.6 33.0 46.9 0.0 100.0  
The former Yugoslav 
Republic of Macedonia  5.6 89.3 4.1 2.7 32.9 46.2 0.1 99.9 
Tunisia  5.6 89.4 4.2 3.7 32.6 46.5 0.1 99.9 
Turkey  5.8 89.4 4.2 2.7 33.8 46.4 0.1 99.9 
Ukraine  5.7 89.6 4.4 2.8 33.4 47.2 0.0 100.0  
GSP 5.0 89.3 4.1 8.7 28.8 50.1 0.1 99.0 
GSP+  4.7 90.6 5.3 8.2 27.6 52.8 0.1 99.8 
LDC 0 100 14.8 0 0 100 0 100 
n.a. Not applicable.  
a Duty-free lines (MFN and preferential tariff rate = zero) as a percentage of total tariff lines.  
b % of total number of lines. Only rates that are lower than the corresponding MFN rate (excluding 
MFN rate = duty free) are taken into account. In the case of different type of duties applied to tariff 
lines between MFN and preferential rates, these preferential tariff lines are treated as "reduced 
preferential rates" (duty > zero).  
Note:  Calculations for averages include AVEs which were provided by the authorities.  
 0.0 refers to >0 and <0.05; 100.0 refers to >99.55 and <100.  
Source:  WTO Secret ariat calculations based on tariff information provided by the authorities and the WTO 
IDB database.  
3.1.4   Other charges affecting  imports  
3.55.   Norway has a number  of other charges on imports; these include VAT, excise taxes and the 
agricultural research levy. In the  state budget for 2018, the preliminary estimate for 2017 tax 
                                                
56 With a population of less than 75 million inhabitants.  WT/TPR/S/373 • Norway  
 
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  revenue is available. In this estimate, VAT amounts to 22% and excise 8% of the total tax 
revenue.57 Norway's VAT is a tax on consumption as it taxes the final supply in a supply chain. 
There are  some exemptions and reductions from the standard VAT rate of 25%, for example food 
products, public services, and exports. The excise tax system is mainly devised to act as a 
disincentive for tax products deemed less healthy or harmful to the environment,  e.g. alcohol and 
tobacco; while other categories, i.e. the document fee and motor vehicle registration are aimed at 
generating government revenues.58 The collection of both excise and VAT goes to the general 
budget and is not earmarked for special purposes . Each year the Storting determines the rates and 
exemptions for the VAT and excise taxes pursuant to Section 75 of the Constitution.59 
3.56.   Norway also has other fees in respect of services rendered i.e. to clear customs outside of 
normal operating hours, for c ertain licences, and for the inspection and control of agricultural 
products.  
3.1.4.1   VAT 
3.57.   VAT charged on imports into Norway is valued on a c.i.f. basis and payable on the customs 
value plus customs duties and any other charges. The rules are provided for in the V AT Act of 
2009, and the VAT Regulations, and the rates are adopted by the parliament (Storting) for each 
year and included in its annual resolution  on the budget. The rates have been maintained at nearly 
the same levels since 2012, with the exception that the rate for passenger transport, cinema 
tickets, and room rentals60 increased to 12% in 2018, and certain exemptions have also changed61 
(Table 3.9). In 2016, the responsibility for VAT on import of goods (and excise) duties was 
transferred from the Customs  Administration to the Tax Administration. As regards VAT, this 
entered into force on 1 January 2017.  
3.58.   The main changes to the VAT Act during the period concern procedural aspects and 
modifications due to changes in other laws. Changes introduced in 2014 w ere to align the 
terminology to that used in the Fisheries Act, thus the reduced rate category of "raw fish" has 
been expanded to cover "wildlife marine resources". Also, in a related change, the increase in the 
threshold on private duty -free imports (see Section 3.1.1) has had a consequential impact, as 
these products are also exempt from VAT.62 In 2016, changes were introduced to give the same 
exemptions to electronic news services as had been previously given to news in print form so as to 
keep in step wi th technological developments. This exemption applies only if certain conditions are 
met. The scheme is not limited to news in the Norwegian language and there are no requirements 
regarding national ownership.63  
3.59.   Prior to 2016, during the importation of goo ds, it was the person making the customs 
declaration that was responsible  for paying the VAT to the Customs authorities. Procedural and 
organizational changes that entered into force in January  2017 have now rationalized the process 
and VAT -registered impo rters no longer declare, calculate, nor pay the VAT to Customs upon 
importation. Rather, VAT -registered importers declare and pay the import VAT as part of the 
ordinary VAT assessment. This change is expected to increase liquidity for foreign -based 
Norwegi an-registered companies. For non -registered importers, the procedure remains as before 
                                                
57 Regjeringen online informat ion. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec1 . 
58 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20162017/id2514108/sec2#KAP9 -4. 
59 Lovdata online information. Viewed at: https://lovdata.no/dokument/NL/lov/1970 -06-26-74 and 
https://lovdata.no/dokument/STV/forskrift/2016 -12-17-1673. 
60 Passenger transport, acc ommodation, public broadcasting and entry to cinemas, sports events, 
amusement parks and experience centres.  
61 The Norwegian Tax Administration online information. Viewed at: 
http://www.s katteetaten.no/en/Rates/Value -added -tax/. 
62 VAT Act Article 7 -2 with reference to Customs Act Article 5 -9, see Lovdata online information. Viewed 
at: https://lovdata.no/dokument/LTI/forskrift/2014 -12-22-1915. 
63 The details for this exemption are provided in VAT Regulation Article 6 -2, see Lovdata online 
information . Viewed  at: https://lovdata.no/dokument/SF/forskrift/2009 -12-15-1540#KAPITTEL_6  and 
http://www.skatteetaten.no/no/Radgiver/Rettskilder/Uttalelser/Prinsipputtalelser/meirverdiavgiftslova --6-2---
fritak -for-elektroniske -nyheitstenester --skattedirektoratets -fellesskriv -til-skattekontorene -av-26.-februar -
2016/  and notification to the EFTA surveillance authority . Viewed at: 
https://www.regjeringen.no/contentassets/95cf7028fac3455d859305d0d72399f2/14 -4781-notifikasjon -01-12-
2015.pdf . WT/TPR/S/373 • Norway  
 
- 56 - 
 
  with the VAT declared and paid to Norwegian Customs. As regards services acquired from suppliers 
established outside Norway, businesses and public bodies established in Norway are required to 
declare these acquisitions and pay VAT on them. VAT -registered businesses include this 
information in the ordinary VAT return, while non -VAT registered entities must make the 
declaration to the tax administration in a separate form.  
Table 3.9 VAT rates and exemptions, 2018  
Products/sector  Rate 
Standard rate:  
For goods and services not covered by other rates   
25% 
Reduced rate:   
Food products  
Passenger transport, cinema tickets, room rentalsa 
Wildlife marine resources  15% 
12% 
11.11%  
Specific rates/rules:   
Electronic services supplied from abroad to private individuals in Norway (VOES), 
simplified registration scheme:  
provision and hosting of websites, remote maintenance of software and hardware; 
software and updating of software; provision of images, texts and information and 
access to databases; provision of music, video, games, broadcasting and political, 
cultural, sporting, scientific and entertainment events and occasions; provis ion of 
remote teaching; and other services  25% 
Purchases of services from abroad, Svalbard, and Jan Mayen B2B (business to business)  Calculated by the 
purchaser 
(reversed charge)  
Domestic supply of gold and carbon credits B2B  Calculated by the 
purchaser 
(reversed charge)  
Exemptions:   
a) General exemptions from VAT:   
Health services; alternative treatments; social services; educational services; art and 
culture; sport; exercise of public authority; intra -governmental services; certain 
financial services; real property; charitable and philanthropic institutions and 
organizations; non -profit organizations and associations; lottery services; ceremonial 
services; services as a member of a board; postage stamps, notes and coins; goods 
used for private  purposes; and offsetting emission allowances; public entities  Exempt without 
right to deduct 
VAT  
b) On domestic sales:   
Newspapers; periodicals; books; other publications; electric power for use in households 
in northern Norway; vehicles powered exclusively by electricity; certain vessels; supply 
and hiring out of aircraft for commercial aviation activities and of military aircraft; oil 
platforms, pipelines; construction of embassy buildings; international military forces and 
command units; transfers of undertakings; biological material; and funeral services  Zero-rated 
c) Withdrawals:   
Charitable causes; workplace canteens; primary industries; and exemptions for 
corresponding supplies  Zero-rated 
d) Exports:   
Export of goods; export of services; goods placed in a bonded warehouse; resale of 
goods to purchasers outside the VAT area; goods for tourists; retail outlets at airports 
on departure; retail outlets at airports on arrival; certain transport services; brokering 
services if performed outside the VAT area; goods and services for certain vessels; 
goods and services for aircraft in international commercial a viation; goods and services 
to certain petroleum activities; advertising publications in a foreign language; and 
warranty repairs  Zero-rated 
e) Imports:   
Temporary imports; re -imported goods; samples; destroyed items; foreign 
representations and international organizations; vessels and goods for vessels; aircraft 
and goods for aircraft; oil platforms, pipelines; goods received free of charge; electric 
power; goods of an educational, scientific or cultural nature; equipment for foreign 
scientific e xpeditions; stamps, banknotes, and coins as collectibles; new and used 
electric vehicles; and goods for maintenance of the F -35 weapon system  Zero-rated 
a Passenger transport, transport of vehicles on ferries or other vehicles on domestic road-connections, 
accommodation in hotels , etc, public broadcasting and entry to cinemas, access to museums, sports 
events, amusement parks and experience centres.  
Source:  VAT Act. The Norwegian Tax Administration online information. Viewed at: 
http://www.skatteetaten.no/en/Rates/Value -added -tax/; and Norwegian Customs online 
information. Viewed at: https://www.toll.no /no/bedrift/import/beregning/fritak/ . WT/TPR/S/373 • Norway  
 
- 57 - 
 
  3.1.4.2   Excise duties  
3.60.   Norway has an Excise Act and related regulations that provide the framework for excise 
duties, together with the Storting's annual decisions on each of the excise duties respectively.64 
The excise rates are updated annually by the Storting, in line with changes in the consumer price 
index, so that the tax incidence will remain unchanged. As of 2018, there were 17 categories of 
excise duties applied mainly on goods, but also on emissions (NOx) and services ( commercial 
flights) (Table 3.10). Some taxes are not charged anymore, i.e. pesticide tax, while the scope or 
exemptions of some of the other taxes changed over the review period, i.e. electricity tax. In 
2018, the excise tax on chocolate and sugar products  was raised significantly as part of the 
Government's public health policy initiatives.  
3.61.   Excise duties are generally applied equally to domestic and imported products but there are 
sometimes exceptions, lower rates, or refunds provided to domestic operation s or certain sectors. 
For example, there are refunds on the CO 2 tax on mineral oil for the wood processing and fish 
meal/oil industries; and also for domestic aviation and fishing in coastal waters.65 Domestic freight 
and passenger transport is also subject  to certain exemptions.66 When goods are imported, the 
obligation to pay excise duties arises at the time of importation for non -registered importers, 
whereas for registered importers (and producers) the obligation arises when the goods are 
removed from the  company's approved premises.67  
Table 3.10 Products subject to excise duties and rates, 2018  
Products  Rates  Exemptions  
Alcoholic beverages:  
Liquor -based beverages containing more 
than 0.7% by volume of alcohol  
Alcoholic beverages over 0.7% up to and 
including 2.7% by volume  
Alcoholic beverages over 2.7% and up to 
and including 3.7% by volume  
Alcoholic beverages over 3.7% and up to 
and including 4.7% by volume  
Alcoholic beverages over 4.7% and up to 
and including 22% by volume   
NKr 7.58 per %  by 
volume and litre  
NKr 3.39 per litre  
 
NKr 12.74 per litre  
 
NKr 22.07 per litre  
 
NKr 4.94 per % by 
volume and litre  Exemption for technical, scientific or 
medical purposes  
Non-alcoholic beverages:  
With added sugar or artificial sweeteners 
and syrup with added sugar or artificial 
sweeteners used in the production of non -
alcoholic beverages for sale, in dispensers 
and similar  
Prepared products  
Concentrate (syrup)  
Juice and syrup based on fruit, berries or 
vegetables w ithout added sugar  
Concentrate (syrup based on fruit, berries 
or vegetables) without added sugar   
 
 
 
 
 
4.75 per litre  
28.91 per litre  
1.70 per litre  
 
10.32 per litre  Exemption if used as part of another 
product  
Beverage packing:  
Environmental tax — 
Glass  and metal  
Plastic  
Cardboard  
Basic tax — 
On single -use packaging   
 
NKr 5.79 per unit  
NKr 3.50 per unit  
NKr 1.43 per unit  
 
NKr 1.19 per unit  Packaging covered by an approved return 
scheme is subject to a lower 
environmental tax rate depending on the 
return percentage.  
Exemptions from the environmental tax 
for packaging used for beverages in 
powder form and breast milk substitutes.  
Basic tax is not levied on single -use 
packaging for: milk and milk products, 
beverages made from cocoa and chocolate 
and concent rates thereof, products in 
powder form, cereal - and soya -based milk 
substitute products, and breast milk 
substitutes.  
                                                
64 Lovdata online information. Viewed at: https://lovdata.no/dokument/NL/lov/1933 -05-19-11 and 
https://lovdata.no/dokument/SF/forskrift/2001 -12-11-1451. 
65 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2001 -12-11-1451. 
66 Lovdata online information. Viewed at: https://lovdata.no/dokument/STV/forskrift/2016 -12-17-1673. 
67 Lovdata online info rmation. Viewed at: https://lovdata.no/dokument/SF/forskrift/2001 -12-11-1451. WT/TPR/S/373 • Norway  
 
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  Products  Rates  Exemptions  
Tax on electric power, 3 tax brackets:  
1. residential bracket;  
2. industrial bracket, for wide range of 
industries, manufacturing, trade  etc.; 
3. zero bracket, for power used as input 
in chemical reduction and electrolytic, 
metallurgical and mineralogical processes; 
the greenhouse industry; propulsion of 
rail-borne transport vehicles  1. NKr 0.1658 per 
kWh;  
2. NKr 0.0048 per 
kWh;  
3. NKr 0.0 0 per 
kWh Exemptions apply for households and 
public administration in Finnmark and 
Nord-Troms.  
Hydrofluorocarbons (HFC) and 
perflourocarbons (PFC)  NKr 0.4500 per kg  Does not cover the recycling of HFC and 
PFC. 
Mineral products  
CO2-tax:  
Mineral oil, high rate  
Mineral oil, in domestic aviation  
For fishing and catching inshore waters  
Petrol  
Natural gas  
 
 
LPG 
Sulphur tax on mineral oil containing 
more than 0.05% weight of sulphur  
 
Base tax on heating oil  
Mineral oil used in wood -processing   
 
NKr 1.33 per  litre 
NKr 1.28 per litre  
NKr 0.29 per litre  
NKr 1.16 per litre  
NKr 1.00 per 
standard cubic 
metre  
NKr 1.50 per kg  
Øre 13.1 per litre 
for each 0.10% 
weight sulphur  
NKr 1.63 per litre  
NKr 0.20 per litre  CO2 tax is not payable on the use of 
mineral products for aircraft in 
international service and ships in 
international service.  
Biodiesel is exempt from CO 2, sulphur and 
basic tax. Reduced rates apply for certain 
types of industry.  
Nitrogen oxides (NOx)  NKr 21.94 per kg  Exemptions apply to business 
organizations which have signed the 
Environmental Agreement on NOx 
2018-2025; vessels used for fishing and 
hunting in remote waters; and direct 
international shipping.  
Chocolate and sugar products  NKr 36.92 per kg  Exempt if used in making another product.  
Sugar  NKr 7.93 per kg of 
taxable weight  Exempt if used in making another product.  
Lubricating oil  NKr 2.20 per litre  Lubricating oil sold in consumer packaging 
of less than 0.15 litres.  
Technical ethanol and ethanol 
preparations  Same as for 
alcoholic beverages  Same as for alcoholic beverages.  
Tobacco:  
Cigarettes  
Cigars and smoking tobacco  
 
 
Chewing tobacco and snuff  
 
 
Cigarette paper and cigarette tubes   
NKr 2.59 per item  
NKr 2.59 per gr. of 
packaging's net 
weight 
NKr 1.05 per gr. of 
packaging's net 
weight  
NKr 0.0396 per 
item Tobacco products imported as travel 
goods are exempt from tax and labelling 
obligations.  
Trichloroethene (TRI) and 
tetrachloroethene (PER)  
0.1 - 1% 
1 – 5% 
5 - 10% 
10 - 30% 
30 - 60% 
60 - 100%   
NKr 0.72 per kg 
(only PER)  
NKr 3.62 per kg  
NKr 7.23 per kg  
NKr 21.69 per kg  
NKr 43.37 per kg  
NKr 72.29 per kg  The tax is not payable on recycling for 
own use  
Road tax on fuel:  
Petrol:   
Sulphur -free petrol (under 10ppm 
sulphur)  
Low sulphur petrol (under 50ppm sulphur)  
Other petrol  
Bioethanol covered by the turnover 
requirement  
Diesel:  
Sulphur -free mineral oil (under 10ppm 
sulphur)  
  
 
NKr 5.17  per litre  
 
NKr 5.21 per litre  
 
NKr 5.21 per litre  
NKr 5.17 per litre  
 
NKr 3.75 per litre  
 
 Exemptions apply to duty -free diesel oil 
for use in tractors, provided the oil is 
marked;  petrol used in work equipment 
with a two -stroke engine; and boats or 
snowmobiles in areas without roads are 
subject to reimbursement.  WT/TPR/S/373 • Norway  
 
- 59 - 
 
  Products  Rates  Exemptions  
Low sulphur mineral oil (under 50ppm 
sulphur)  
Mineral oil  
Biodiesel covered by the turnover 
requirement  
LPG NKr 3.81 per litre  
 
NKr 3.81 per litre  
NKr 3.75 per litre  
 
NKr 2.23 per kg  
Motor cars : 
One off registration and scrap deposit  
Annual weight -based motor vehicle tax  
Tax on traffic insurance:c 
Excise group a  
Excise group b  
Excise group c  
Excise group d  
Excise group e  
Re-registration fee   
Variesa 
Variesb 
 
NKr 7.73/7.85  
NKr 9.01/9.15  
NKr 7.73/7.85  
NKr 5.37/5.46  
NKr 1.25/1.27  
Variesd  
Air passenger tax  NKr 80  Exempt from the air passenger tax are 
airline employees travelling on business; 
children under the age of two; and transit 
and transfer passengers  
Document (stamp) tax on real estate 
transactions  2.5% of sale value  Exemptions apply in the case of transfer of 
rights to real property between sp ouses, 
transfer of real property to spouse in the 
event of the division of jointly owned 
property following separation or divorce, 
transfer of joint residential property 
following the break -up of a relationship, 
and inheritance in accordance with the 
provisions of the Inheritance Act.  
a For calculation of the fee, use the calculator here: https://www.skatteetaten.no/nn/Person/bil -og-
andre -kjoretoy/importere/rekn -ut-kva-det-kostar/kalkulator -import/ . 
b For calculation of the fee, use the calculator here: http://www.skatteetaten.no/en/person/cars -and-
other -vehicles/annual -motor -vehicle -tax/weight -based/ . 
c From 2018.  
d For calculation of the fee, use the calculator here: https://www.skatteetaten.no/en/person/cars -and-
other -vehicles/eierskifte/re -regisration -fee/. 
Source:  The Norwegian Tax Administration online information. Viewed at: 
http://www.skatteetaten.no/en/business -and-organisation/duties1  and Lovdata online information. 
Viewed at: https://lovdata.no/dokument/STV/forskrift/2016 -12-17-1673. 
3.1.4.3   Agricultural research  levy 
3.62.   In addition to VAT and excise, the other main tax applied on imports is the research levy on 
agricultural products as provided in the Act on the Research Tax on Agricultural Products, No. 74 
of 26 June 1970 and its related regulation s.68 The purpose of the levy is to secure research funds 
for agricultural products used in commercial food production or feed for animals. This tax is levied 
on imported or domestically manufactured food and feed products (excluding fish) (Table 3.11). 
For domestic products, the fee is levied on 0.35% of the taxable base which is the gross invoice 
amount not including VAT, and the rate is subject to change yearly according to changes in 
value.69 Whereas for imported agricultural commodities, it is levied on 0.35% of the taxable base 
which is the customs value. For semi -processed and processed food, the levy is 0.25% of the 
taxable base. The attachment to the regulations lists about 40 food produc ts not subject to the 
levy.70 For shipments of less than NKr 350, the fee is not applied.  
3.63.   The monies collected  go into the Research Fund for Agricultural Products as overseen by a 
seven -member board; the Ministry of Agriculture and Food determines how the Fund will be 
managed. The Fund works with many established Norwegian research institutions and also issues 
calls for tenders based on the projects it is supporting for a given year. A significant percentage of 
the funds go to strategic programmes at the re search firm Nofima. The rest has been used to fund 
other long -term national research projects involving the agricultural industry by open invitation for 
                                                
68 Lovdata online information. Viewed at: https://lovdata.no/dokument/NL/lov/1970 -06-26-74 and 
https://lovdata.no/dokument/SF/forskrift/2012 -12-20-1417. 
69 For the period 1 July to 30 June.  
70 Lovdata online information. Viewe d at: https://lovdata.no/dokument/SF/forskrift/2012 -12-20-1417. WT/TPR/S/373 • Norway  
 
- 60 - 
 
  applications. In 2017, the Fund generated NKr 173 million, of which NKr 55 million came from 
imported p roducts.71 Budget estimates for 2018 expected that the levy would raise 
NKr 163 million.72  
Table 3.11 Agricultural research levy, products and rates, 2016 -18  
NKr per l/kg  or per cent as indicated  
 July 2016 -June 2017  July 2017 -June 2018  
Ducks and geese  0.15 0.14 
Eggs 0.07 0.07 
Hens 0.15 0.14 
Turkey  0.15 0.14 
Chicken  0.15 0.14 
Honey  0.35%  0.35%  
Sheep  0.15 0.14 
Lamb  0.15 0.14 
Beef 0.15 0.14 
Pig 0.15 0.14 
Reindeer  0.15 0.14 
Deer 0.15 0.14 
Grain  0.0095  0.0097  
Fruit and vegetables  0.35%  0.35%  
Cow milk  0.0188  0.0189  
Goat milk  0.0188  0.0189  
Source:  Norwegian Agriculture Agency online information. Viewed at: 
https://www.landbruksdirektoratet.no/no/dokumenter/satser/_attachment/66259?_ts=15e13e6560
0. 
3.1.5   Import prohibitions, restrictions , and licensing  
3.64.   Norway m aintains a number of measures that restrict or otherwise prohibit imports. Some 
of these are subject to licensing or special conditions before importation. Most of the prohibitions 
or restrictions are long -standing although there have been a number of deve lopments during the 
review period (Table 3.12). Norway has notified six categories of products subject to import licence 
in its latest notification to the WTO (agricultural products, alcoholic beverages, medicinal products, 
firearms and ammunition, explosi ve substances, and endangered species).73  
3.65.   In 2015, Norway issued new regulations aimed at preventing the introduction and spread of 
foreign organisms, i.e. the Regulations relating to alien organisms issued pursuant to the Nature 
Diversity Act.74,75 These ne w rules came into force on 1 January 2016. The purpose of the 
Regulations is to prevent the import, release and spread of alien organisms that have or may have 
adverse impacts on biological or landscape diversity. It includes a general requirement of a per mit 
for the import of organisms, and for the release of alien organisms, however with a number of 
exceptions. The Regulations also include a prohibition against the import, release and placing on 
the market of 31 alien organisms, mainly plants, but also li ve American Lobster ( Homarus 
americanus ). Several hundred species are subject to exemption (Annex II) and about 70 species 
are subject to specific authorization to import (Annex III) per a  licence. The regulation also 
imposes a duty of care on persons who may introduce a species so that preventative action or 
remediation can take place to limit the consequences on the environment. Norway has not 
implemented the EU Regulation 1143/2014 on invasive alien species.  
                                                
71 Agricultural Directorate online information. Viewed at: 
https://www.landbruksdirektoratet.no/no/styrer -rad-utvalg/styrene -for-ffl-og-
ja/arsmeldinger/_attachment/64221?_ts=15ad26aa990&download=true . 
72 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -1-ls-
ls0-20172018/id2574326/sec2?q=gsp#KAP12 . 
73 WTO document G/LIC/N/3/NOR/9.  
74 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2015 -06-19-716 
and https://lovdata.no/dokument/NL/lov/2009 -06-19-100. 
75 Norway has notified this to the WTO as an SPS measure; see WTO document G/SPS/N/NOR/33.  WT/TPR/S/373 • Norway  
 
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  Table 3.12 Import restrictions, prohibitions or licensing requirements, 2018  
Products  Type of measure  Legal basis  
Automatic licensing:  
Certain products which 
might be used as feeding 
stuff in domestic animal 
production  Automatic licensing  Regulation No.  556 of 9 June 1995, and Act 
No. 32 of 6 June 1997 on import and 
export regulations  
Security mechanism and 
surveillance system for 
duty- and quota -free 
import of grains, flour 
and feed products from 
LDCs and low -income 
countries with less than 
75 million inhabitants  Automatic licensing  Regulation No. 228 of 7 March 2008 on the 
security mechanism for imports of 
agricultural products from developing 
countries covered by the Generalized 
System of Preferences for Goods Imported 
from Developing Countries (GSP)  
Drug precursors  Restriction  Medicinal Products Act pursuant to EU 
Council Regulation (EC) No. 111/2005, 
Regulation (EU) 2015/1011, and 
Regulation (EC) No. 111/2005  
Controlled substances 
that deplete the ozone 
layer  Prohibited unless a permit is 
obtained  Regulation No. 922 of 1 June 2004, Product 
Control Regulations  
Prohibitions and/or restrictions:  
Laserpointers  Prohibited unless approved by the 
Norwegian Radiation Protection 
Authority  Regulation No. 1659 of 16 December 2016 
on Radiation Protec tion and Use of 
Radiation  
E-cigarettes  Prohibited but may apply to the 
Directorate of Health for exception  Regulation No. 1044 of 13 October 1989 on 
the Prohibition of New Tobacco and 
Nicotine Products  
E-cigarettes and other 
novel tobacco or nicotine 
products, that are not 
medicines  Prohibited unless approved by the 
Norwegian Directorate of Health  On-going process incorporating the 
Tobacco Product Directive (2014/40/EU) 
into the Norwegian Tobacco Control Act  
Alien organisms  Annex I organisms are prohibited 
and other organisms covered by the 
regulations require, with some 
exemptions, a licence  Act No. 100 of 19 June 2009 Relating to 
the Management of Biological, Geological 
and Landscape Diversity (Nature Diversity 
Act); Regulation No. 716 of 19 Jun e 2015  
Wastes  Pursuant to EEA and the Basel 
Convention, there are restrictions on 
the import and export of wastes. 
Shipping of wastes to Svalbard is 
prohibited  Regulation No. 930 of 1 June 2004 on 
Waste Recycling and Treatment  
Chemicals  Pursuant to the R EACH Regulation 
certain restrictions may apply  Regulation No. 516 of 30 May 2008 on 
Registration, Evaluation, Authorization, and 
Restriction of Chemicals  
Narcotic drugs and 
psychotropic substances  Imports and exports of covered 
drugs are prohibited unless  
authorized by the Norwegian 
Medicines Agency  Act No. 132 of 4 December 1992 on 
Medicinal Products; Regulation No. 199 of 
14 February 2013 on Drugs  
Mackerel, tuna, and 
swordfish  Import and/or export restrictions 
dependent on catch document 
approval  Regulation No. 332 of 20 March 2009 on 
mackerel, tuna, and swordfish  
Toys Toys may be prohibited if they do 
not meet the conditions in the 
regulation on toy safety  Regulation No 1403 of 18 November 2013 
on toy safety  
Harvested timber  Prohibitions pursuan t to the EU 
Timber Regulations  Regulation No. 406 of 24 April 2015 on 
trade of timber and wood products 
originating outside Norway  
Hazardous chemicals, 
toys and products  Prohibitions and restrictions apply  Regulation relating to restrictions on the 
use o f chemicals and other products 
hazardous to health and the environment 
(Product Regulation) No. 922 of 1 June 
2004, Regulation No. 516 of 30 May 2008 
on Registration, Evaluation, Authorization, 
and Restriction of Chemicals  WT/TPR/S/373 • Norway  
 
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  Products  Type of measure  Legal basis  
Explosives, fireworks  Prohibited  unless approved by the 
Directorate for Civil Protection and 
Emergency Planning  Act No. 20 of 14 June 2002 on the 
Prevention of Fire, Explosion and Accidents 
involving Hazardous Substances and the 
Fire Service's duties in Rescue Operations;  
Regulation No.  844 of 15 June 2017 on 
Civil Handling of Explosives Substances, 
which implements Directive 2014/28/EU of 
the European Parliament and of the Council 
of 26 February 2014 on the harmonization 
of the laws of the Member States relating 
to the making available on the market and 
supervision of explosives for civil uses  
Restricted explosives 
precursors  Prohibited from import by members 
of the general public and enterprises 
with no professional need for the 
substances  Regulation No. 588 of 2 June 2015 on the 
handl ing of explosives precursors, which 
implements Regulation (EU) No 98/2013 of 
15 January 2013 on the marketing and use 
of explosives precursors  
Endangered animals and 
plants  Animals and plants listed as 
endangered by CITES, prohibited 
(Appendix I -species) and requiring a 
licence (Appendix II - and III -species)  Act No. 32 of 6 June 1997 on Import and 
Export Regulations; Regulation No. 1276 of 
15 November 2002 for the implementation 
of the Convention of 3 March 1973 on 
International Trade in Endangered Species  
of Wild Fauna and Flora (CITES)  
Alcoholic beverages  Commercial imports restricted to 
licensed importers (licensed 
wholesalers and producers, and 
holders of an extended retail or 
service licence). Exception applies to 
the state -owned company AS 
Vinmonopolet  Act No. 27 of 2 June 1989 on the Sale of 
Alcoholic Beverages, Regulation No. 538 of 
8 June 2005 on the Sale of Alcoholic 
Beverages  
Arms and ammunition  Importers of weapons, weapon parts 
or ammunition need a licence from 
the Police Authority  Act No. 1 of 9 June 1961 on Weapons and 
Ammunition; Regulation No. 904 of 
25 June 2009 on Firearms, Firearm 
Components and Ammunition  
Medicinal products  All importers need a wholesale 
import licence issued by the 
Norwegian Medicines Agency. 
Pharmaceuticals  from countries 
outside the EEA require prior 
approval from Norwegian Medicines 
Agency. Personal imports outside the 
EEA are prohibited  Act No. 132 of 4 December 1992 on 
Medicinal Products, Regulation No. 1219 of 
21 December 1993, and Regulation 
No. 1441 o f 2 November 2004  
Diamonds  Valid certificate required for rough -
cut diamonds in accordance with the 
Kimberly Process  Regulation No.  470 of 24  February 2004 on 
the certification of rough -cut diamonds 
implementing the Kimberly Process 
Certification Scheme  
Cultural objects  Imports are prohibited or require 
licence or consent of authorized 
institutions in the exporting country  Act No. 50 of 9 June 1978 on Cultural 
Heritage  
Pirated goods that 
infringe IPRs  All commercial imports that infringe 
IPRs Act No. 119 of 21 December 2007 on 
Customs  
Source:  WT/TPR/S/269/Rev.1, G/LIC/N/3/NOR/7, laws specified in the table, Norwegian Customs online 
information. Viewed at: https://w ww.toll.no/no/bedrift/import/varer -med-restriksjoner/ , and 
information provided by the authorities.  
3.66.   Norway has been a party to the CITES convention since 1974 and has been protecting 
35,00076 threatened species listed by CITES through a licensing system. It  applies the CITES 
provisions as they pertain to the three appendices. However, it has a number of specific 
reservations and thus does not apply the trade restrictions of Appendix I to certain species of 
whales, sharks, and seahorses.77 Rather, these specie s are treated according to Appendix II 
provisions. Through the Norwegian Environment Agency, Norway requires a permit for the 
importation, exportation, or re -exportation of the items contained in Norway's CITES appendices. 
                                                
76 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/902deab2906342dd823906d06ed05db2/en -
gb/pdfs/stm201520160014000engpdfs.pdf . 
77 CITES online information. Viewed at: https://www.cites.org/eng/app/reserve.php . WT/TPR/S/373 • Norway  
 
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  Norway's provisions for the prohi bition or regulated trade of these species are contained in 
Regulation No. 1276 of 15 November 2002 for the implementation of the Convention of 
3 March  1973 on International Trade in Endangered Species  of Wild Fauna and Flora (CITES) 
Foreign Organisms. The regulation is currently under revision (see para. 2.12).  
3.67.   Other developments during the review period were with respect to e -cigarettes. Since 1989, 
the production, sale, and importation of e -cigarett es has been prohibited in Norway pursuant to 
the Regulation on Prohibition of New Tobacco and Nicotine Products. In 2016, the Storting passed 
new legislation lifting this prohibition, but as of 2017 the ban was still in effect.78 It is expected 
that this prohibition  will be lifted in 2018 but  registration will be required in line with the EU 
Tobacco Products Directive 2014/40/EU. The process of including this directive in the EEA 
Agreement is ongoing. Pursuant to its adoption of the EU Timber Regulation in 2 015, Norway now 
monitors timber imports (see Section 4.1.2.4).  
3.68.   As of November 2017, Norway was considering introducing a licensing system for the import 
of tobacco products, in line with the WHO FCTC Protocol on illicit trade. Norway has also started 
prepa rations to amend its legislation regarding medical devices to implement new EU Regulations 
in this area adopted in 2017 (Regulations (EU) No. 2017/745 and 2017/746).  
3.69.   Pursuant to the Regulation on the security mechanism for imports of agricultural products  
from developing countries covered by the GSP, Norway has a system of import licensing for certain 
products under the GSP.79 The annex to the regulation lists approximately 80 ex -outs of four -digit 
tariff lines.  
3.70.   It would appear that a number of these provis ions should also be notified to the WTO under 
the notification requirement on quantitative restrictions.  
3.1.6   Anti-dumping, countervailing , and safeguard measures  
3.71.   Norway's legal framework for trade remedies, i.e. anti -dumping, countervailing, and 
safeguard mea sures, remains part of the Customs Act, mainly section 10, but procedural aspects 
related to investigations are contained in Section 12. While the Act provides for related 
regulations, there are none in place at this time. Furthermore, there have been no c hanges during 
the review period.  
3.72.   Norway has not initiated any anti -dumping or countervailing duty investigations since the 
inception of the WTO; nor has it taken any global safeguard measures.80 Eight trade remedy 
investigations against Norway have been con ducted since 1995 and five of them resulted in 
measures being applied.81 In one case, in 2005, Norway notified the WTO of proposed suspension 
of concessions pursuant to Article 12.5 of the Agreement on Safeguards in response to measures 
imposed by the Europ ean Union on farmed salmon.82 An anti -dumping investigation followed 
whereby measures were put in place, which Norway subsequently took to a panel in the WTO.  
3.73.   As regards anti -dumping and countervailing duties, they are not applied between EEA 
member States as a general rule, i.e. where the EEA Agreement is applicable83; and are also not 
applied between EFTA States.84 In regard to EFTA FTAs, they mainly incorporate or refer to WTO 
anti-dumping and countervailing duty rules, and in some of the more recent FTAs, the agreement 
goes further to incorporate provisions relating to consultations, sunset, a prohibition against 
zeroing, the "lesser duty" rule and other elements. Some FTAs contain a prohibition against taking 
anti-dumping measures.  
                                                
78 Act of 9 December 2016 on Amendments to the Tobacco Injury Act (Implementation of Directive 
2014/40/EU and Standardized Tobacco Packs).  
79 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2008 -03-07-228. 
80 WTO online information. Viewed at: 
https://www.wto.org/english/tratop_e/adp_e/AD_InitiationsByRepMem.pdf . 
81 WTO online information. Viewed at: https://www.wto.org/english/tratop_e/adp_e/adp_e.htm . 
82 WTO document G/SG/N/12/ NOR/1.  
83 For example, fish and fish products are excluded.  
84 EFTA online information. Viewed at: www.efta.int/media/publications/fact -sheets/EEA -factsheets . WT/TPR/S/373 • Norway  
 
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  3.74.   Many of the EFTA FTAs al so have safeguard rules, i.e. for global safeguards and bilateral 
safeguards. The global safeguard provisions generally reaffirm the rights under the WTO rules and 
exclude imports of the parties to the agreement when taking such safeguard measures if these  
imports are not a substantial cause of serious injury or threat thereof. Safeguard measures with 
the European Union are governed by a 1973 bilateral agreement.85 
3.75.   Pursuant to the outcome of the Uruguay Round on agriculture, Norway has provisions in its 
WTO schedule for the Special Safeguard mechanism (SSG). The domestic rules for its invocation 
are contained in the Regulations on increases of ordinary customs duties, safeguard duty, on 
agricultural products.86 The SSG has not been invoked during the review pe riod. Norway also has a 
security mechanism for agricultural products under the GSP (see Section 2.3.2.4) (Unilateral 
preferences).  
3.76.   Norway notified it laws with respect to trade remedies in June 2009 and regularly informs 
the respective Committees that it h as not taken any anti -dumping or countervailing measures 
during the previous six -month period s.87 
3.1.7   Other measures  affecting imports  
3.1.7.1   Sanctions  
3.77.   Norway imposes sanctions as a result of UN Security Council Resolutions and may impose 
restrictive measures emanating from regulations adopted by the EU Council. According to the 
authorities, sanctions are most effective when they have broad, international  support, and Norway 
does therefore not have a tradition for imposing unilateral sanctions. Such a decision would also 
necessitate passing of a new, separate act (primary legislation). The sanctions take many forms 
and include prohibitions or restrictions  on imports, exports, financial measures, licensing 
requirements, etc. Norway's legislative framework on sanctions consists mainly of the Act No. 4 of 
7 June 1968 for UN resolutions, and Act No. 14 of 27 April 2001 for EU and other similar 
international mea sures.88 There are also some sanctions, i.e. arms embargoes, implemented 
through the export control legislation. Sanctions are put in place through the issuance of 
regulations relating to these laws.  
3.78.   As of December 2017, Norway had sanctions of various type s in place with respect to 
27 countries, persons, or areas.89 All but one corresponds to a UN Security Council Resolution or 
EU Council Regulation. One is in place due to measures taken by the Organization for Security and 
Co-operation in Europe (OSCE). Dur ing the review period, Norway implemented all UN sanctions. 
Some of the additional measures adopted by the UN Security Council on 22  December  2017 have 
yet to be implemented into national legislation. This will , however , be done shortly after the 
European Union has revised its corresponding Council regulation. Norway has , throughout 2017 , 
aligned itself with EU restrictive measures.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.79.   Norway's customs procedures for exports are similar t o those for imports. Exporters must 
present a customs declaration upon exportation in order for customs clearance to be granted, but 
                                                
85 Agreement between the European Economic Community and the Kingdom of Norway of 14 May 1973.  
86 Regulation No. 1448 of 17 December 1998. Lovdata online information. Viewed at: 
https:// lovdata.no/dokument/SF/forskrift/1998 -12-17-1448. 
87 WTO document G/ADP/N//1/NOR/4, G/SCM/N/1/NOR/4, G/SG/N/1/NOR/4; and numerous semi -
annual notifications pursuant to Art. 16.4 of the Agreement on the Implementation of Article VI of the GATT 
1994 and Art. 25.11 of the Agreement on Subsidies and Countervailing Measures (see Table A2.1).  
88 Act on implementation of binding decision of the United Nations Security Council. Lovdata online 
information. Viewed at: https://lovdata.no/dokument/NL/lov/1968 -06-07-4. Act on implementation of 
international, non -military measures involving the suspension of or restrictions on economic and other relations 
with third countries or movements. Lovdata online inform ation. Viewed at: 
https://lovdata.no/dokument/NL/lov/2001 -04-27-14. 
89 For the list of sanctions in place, see Regjeringen online information. Viewed at: 
https://www.regjeringen.no/no/tema/utenrikssaker/Eksportkontroll/sanksjoner -og-tiltak1/gjeldende -
sanksjoner -og-tiltak/id2008495/ .  WT/TPR/S/373 • Norway  
 
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  certain exceptions may apply if, for example, goods do not exceed NKr 5,000 per shipment. 
Declarations are done electronica lly through the TVINN system. Alternatively, the SAD is also 
acceptable in paper form at a customs office. Section 4 of the Customs Act and the Customs 
Regulation s provide the legal framework for customs clearance of exports. In cases where not all 
the inf ormation is available, a provisional declaration may be made. No particular approvals are 
required for exports, except for document or physical checks of merchandise that may be 
performed by Customs and approvals for fish and fish products performed by the  Norwegian 
Seafood Council (see Section 3.2.4).  
3.2.2   Taxes, charges , and levies  
3.80.   There are no taxes or levies on Norwegian exports. However, exporters of seafood must pay 
a marketing fee used to finance the activities of the Norwegian Seafood Council, i.e. gener ic 
marketing of seafood abroad, registration of exporters, export promotion activities, etc. The fee is 
collected by Customs upon exportation and all proceeds are passed on to the Norwegian Seafood 
Council (see Section 3.2.4). The fee is ad valorem , thus t he annual income will vary from one year 
to the next. This may also result in adjustments to the rates. The three levels of rates primarily 
reflect differences  in the degree of processing of the end product (Table 3.13). The income from 
the fee was NKr 543 million in 2016.  
Table 3.13 Tax rate on fish and fish products, 2016 -17 
(Rates in % of f.o.b. value)  
HS Descrip tion 2016  2017  
03.01 to 03.08, and 16.05  Fish (other than those below), crustaceans, 
molluscs, and aquatic animals  0.75 0.75 
03.01 to 03.05  Salmon, trout, herring, mackerel, capelin, grayling, 
horse mackerel, haddock, and sprat  0.60 0.30 
16.04  Preserved fish  0.00 0.00 
05.11.91, 15.04, 15.16.1012, 
15.16.1020, 16.03.0020, 
23.01.2010 and 23.01.2090  Industrial fish and by -products of fish, fish oil, 
extract and juice of fish, and fishmeal  0.00 0.00 
Source:  Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/1991 -03-22-157. 
Information provided by the authorities.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.81.   Norway's export restrictions, prohibit ions, and licensing provisions continue to apply in a 
number of areas; and most have remained in place for many years without change (Table 3.14). 
In addition, Norway has licensing requirements or controls on defence and related dual -use goods 
pursuant to a number of international conventions (see Section 3.2.3.1).  
3.82.   The Norwegian Customs Service may block exportation (or importation) of counterfeit or 
pirated goods upon request from the right holders or on its own initiative according to Article 15 of 
the Cu stoms Duty and Movement of Goods Act. For travellers, exports of cash or cash equivalents 
in Norwegian or foreign currency exceeding NKr 25,000 must be declared to the Norwegian 
Customs Service on departure.90 Similarly, as the customs code allows private p ersons to bring a 
certain amount of goods with them when they are leaving the country, tourists may take out of 
the country a certain amount of fish as a result of sports - or leisure -fishing. This fishery is not 
regulated by total allowable catches and the re is a need to curb the uncontrolled outtake by people 
fishing for leisure. The new limits are a maximum of 10 kg fillets per person for unregistered 
catches and 20 kg fillets for catches taken at registered sea -angling sites (see Section 4.1.3).  
3.83.   In 2016,  Norway introduced requirements for the exportation of used electrical and 
electronic equipment pursuant to the EU's Directive 2012/19/EU of 4 July 2012 on waste electrical 
and electronic equipment (WEEE). These provisions were incorporated into Norway's W aste 
Regulations.91 Upon exportation, the exporter must provide: documentation of the testing of all 
                                                
90 The Norwegian Cu stoms Service began more systematic enforcement of this obligation in 2010. The 
declaration is not subject to fees or charges, but contraventions may result in a fine equal to 30% of the 
undeclared amount (Customs Duty and Movement of Goods Act, Article 16 , paragraph 5).  
91 Regulation No. 930 of 1 June 2004 on Wastes. Lovdata online information. Viewed at: 
https://lovdata.no/dokument/SF/forskrift/2004 -06-01-930/.  WT/TPR/S/373 • Norway  
 
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  products, testing protocol, contract or invoice showing that the products are suitable for re -use, 
declaration that the shipment does not contain wastes, tr ansport document, and declaration of 
responsible person for the shipment.92 
Table 3.14 Export prohibitions and restrictions, 2017  
Products 
affected  Type of restriction  Legal basis (date)  
Endangered animal 
and plant species 
(CITES)  Export prohibition/export 
licence required from the 
Norwegian Environment 
Agency  Act No. 32 of 6 June 1997 on Import and Export 
Regulations; Regulation No. 1276 of 15 November 
2002 for the implementation of the Convention of 
3 March 1973 on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES)  
Wastes  A permit is required from the 
Norwegian Environment 
Agency  Regulation No. 930 of 1 June 2004 on Wastes  
Cultural objects  Export requires consent of the 
Arts Council N orway  Cultural Heritage Act (1978) and Regulation No.  1 of 
1 January 2007 concerning the prohibition of export 
of cultural objects  
Strategic goods 
and defence 
materials  Export licences required from 
the Ministry of Foreign Affairs  Act No. 93 of 18 December 1987 on the export of 
strategic goods, services and technology;  
Regulation No. 718 of 19 June 2013 on the export of 
defence materials, multipurpose goods, technology, 
and services  
Weapons, including 
firearms and 
ammunition   Act No. 1 of 9 June 19 61 on Weapons and 
Ammunition; Act No. 93 of 18 December 1987 on 
the export of strategic goods, services and 
technology; Regulation No. 904 of 25  June 2009 on 
firearms, firearm components and ammunition; 
Regulation No. 718 of 19 June 2013 on the export of 
defence materials, multipurpose goods, technology, 
and services  
Minke whale 
products  Export licence required from 
the Norwegian Environment 
Agency  Regulations relating to the export of minke whales 
No. 799 of 29 June 2001  
Used electrical and 
electronic pr oducts  Requirements for testing, 
documentation and packaging  Regulation No. 930 of 1 June 2004 on Wastes  
Counterfeit goods  All commercial exports or re -
exports are illicit, but subject 
to civil prosecution  The Customs Act (No. 119 of 1 September 2007) 
Chapter  15, on detention of goods infringing 
Intellectual Property Rights (IPR) and pursuant to 
the relevant IPR legislation (see Table III.12)  
Radioactive and 
nuclear waste  Export licence required from 
Norweg ian Radiation Protection 
Authority  Waste Regulation No. 930 of 1 June 2004  
Pharmaceuticals, 
precursors, etc.  All exports require licence from 
the Norwegian Medicines 
Agency  Medicinal Product Act (No. 132 of 4  December  1992) 
§12 and  §13 and Regulation (No.  1219 of 21 
December 1993) regarding wholesaling; and  
Regulation No. 156 of 12 February 2010 
implementing EU regulations (EU) Nos.  273/2004 
and 1277/2005 on narcotic precursors  
Explosives  Exports of explosive 
substances, require an export 
licence from t he Directorate for 
Civil Protection and Emergency 
Planning  Act No. 20 of 14 June 2002 on the Prevention of 
Fire, Explosion and Accidents involving Hazardous 
Substances and the Fire Services' duties in Rescue 
Operations, and Regulation No. 844 of 15 June 20 17 
on Civil Handling of Explosives Substances, which 
implements Directive 2014/28/EU of the European 
Parliament and of the Council of 26  February 2014 
on the harmonization of the laws of the Member 
States relating to the making available on the 
market and supervision of explosives for civil uses  
Restricted 
explosive 
precursors  Export of restricted explosives 
precursors to members of the 
general public is prohibited  Regulation No 588 of 2 June 2015 on the handling 
of explosives precursors  
                                                
92 Norwegian Environmen t Agency online information. Viewed at: 
http://www.miljodirektoratet.no/no/Nyheter/Nyheter/2016/Februar -2016/Strengere -krav-til-eksport -av-
brukte -EE-produkter/ .  WT/TPR/S/373 • Norway  
 
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  Products 
affected  Type of restriction  Legal basis (date)  
Snuff  Exportation of snuff is 
prohibited for all EU countries 
except Sweden and to a 
certain degree Denmark; 
requires export licence from 
Norwegian Directorate of 
Health  Act No. 14 of 9 March 1973 on protection against 
tobacco  
Source:  WT/TPR/S/269/Rev.1 and Nor wegian Customs online information. Viewed at: 
https://www.toll.no/no/bedrift/eksport/varer -med-restriksjonar -ved-eksport/ .  
3.2.3.1   Export control of defence  and related pr oducts  
3.84.   Norway's Export Control Act, the Export Control Regulations, and related Guidelines provide 
the main rules for the export of defence and related dual -use goods; a licence93 is required from 
the Ministry of Foreign Affairs in order to export the produ ct or service.94  Norway is also guided by 
the Government's declaration of 1959, the Storting's 1959 Resolution, and the Storting's 
clarification of 1997, all of which provide guidance on when and how the exportation of defence 
and related materials can occ ur. For example, Norway does not allow exportation to countries 
where there is war or civil war. As a member of the EEA, Norway adopts EU legislation as it 
pertains to export controls  of defence -related products and dual -use products and uses the same 
criteria and conditions so as to maintain harmonization. Norway is a participant in the Australia 
Group, Missile Technology Control Group, Nuclear Suppliers Group, Hague Code of Conduct against 
Ballistic Missile Proliferation, Chemical Weapons Convention,  Proliferation Security Initiative,  and 
the Wassenaar Arrangement.95 
3.85.   Norway's Export Control Regulations were amended in 2013,  the main reason the being 
implementation of an EEA -relevant Directive (ICT). The Guidelines concerning the Export of 
Defence -Related Pr oducts  were updated in 2014, mainly in order to consolidate all criteria. The 
lists of defence and related products were also revised regularly during the review period to reflect 
changes in the underlying agreements, typically at the same time as the Euro pean Union updated 
its lists. Norway became a party to the Arms Trade Treaty (ATT) during the review period, which 
entered into force for Norway in December 2014.96 In 2015, through an exchange of letters, 
Norway and the European Union embarked on closer co operation on policies concerning dual -use 
products and exchange of information on the rejection of export licences.  
3.86.   The Storting ratified the ATT in February 2014 and it was determined that no new provisions 
needed to be added to Norwegian law as the expo rt control rules already contained the necessary 
elements and provisions for the ATT.97 Then, in November 2014, the Guidelines concerning the 
Export of Defence -Related Products  were revised to incorporate the most important provisions of 
the ATT, i.e. Artic les 6 and 7, and the eight criteria set out in the EU Code of Conduct for Arms 
Exports.98 These criteria and principles are included in one consolidated list in the Guidelines, 
which provides more transparency and clarity as to the assessments performed by the Ministry of 
Foreign Affairs in regard to applications for the export of arms and defence -related items.  
3.87.   During the review period, there was a slight decline in the export of defence and related 
goods, although there were fluctuations (Table 3.15). The highest level of exports was in 2012, the 
                                                
93 Licensing requirements for goods destined for EEA countries are slightly different. They are exported 
pursuant to a general transfer licence applicable to certain categories of products as announced by the Minist ry 
of Foreign Affairs; a global transfer licence valid for three years for certain categories of products and 
destinations; or individual transfer licences, applicable if a general or global licence cannot be issued.  
94 Lovdata online information. Viewed a t: https://lovdata.no/dokument/NL/lov/1987 -12-18-93 and 
https://lovdata.no/dokument/SF/forskrift/2013 -06-19-718.  
95 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-5-
20172018/id2576728/sec10#KAP9 -1. 
96 Arms Trade Treaty onli ne information. Viewed at: 
http://www.thearmstradetreaty.org/images/Status_lists/List_of_ATT_States_Parties_by_order_of _deposit11_D
ecember_2017.pdf .  
97 Prop. 186 S (2012 -2013).  
98 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/e19e0d2f0fe74437897036c1ddaf45f6/guidelines -for-defence -
related -exports.pdf .  WT/TPR/S/373 • Norway  
 
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  lowest in 2014, and increases occurred in 2015 -6 although not to 2012 levels. There was also a 
significant increase in the category for service, returns from abroad, etc. The number of companies 
exporting and the n umber of export licences refused also increased during the period.  About 80% 
of Norway's exports of these goods are to NATO countries with the majority destined for the United 
States. Other significant export destinations were Canada, France, Germany, Ital y, Netherlands, 
Poland, and Sweden during the period, although their levels varied from year to year. The Ministry 
of Foreign Affairs rejects the approval of a small number of licences each year (34 in 2016) that 
fall into a number of predetermined categor ies that do not allow exportation, i.e. adherence to 
international obligations (UN sanctions), danger of internal oppression, etc. Norway does not 
automatically reject export licences based on the country of destination, rather the Ministry treats 
each app lication individually.  
Table 3.15 Export control of defence materials, 2012 -16 
(NKr, unless otherwise indicated)  
 2012  2013  2014  2015  2016  
Export licencesa issued (no.)  1,552  1,440  1,301  1,000  1,014  
Export licences rejected (no.)  18 19 20 25 34 
Companies exporting (no.)  52 54 51 74 93 
Exports:       
List Ab  3,303,896  2,549,498  2,299,856  2,961,448  2,937,504  
List Bc 574,437  750,509  644,066  302,415  647,491  
  Subtotal A and B  3,878,333  3,300,007  2,943,922  3,263,863  3,584,995  
Multipurpose goods for defence end -use 404,437  683,432  196,320  311,582  294,089  
Service, returns, etc.  279,368  291,799  475,006  779,668  888,866  
  Total 4,562,138  4,275,238  3,615,248  4,355,113  4,767,950  
a For goods in List A, related services, and return of goods from abroad.  
b Weapons, ammunition, and certain types of military equipment.  
c Other defence -related goods not covered under List A.  
Source:  Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-5-
20172018/id2576728/sec10#KAP9 -1, https://www.regjeringen.no/no/dokumenter/meld. -st.-8-
20152016/id2459560/sec10 , https://www.regjeringen.no/no/dokumenter/Meld -St-8-
20142015/id2342492/sec10 , https://www.regjeringen.no/no/dokumenter/meld. -st.-36-
20152016/id2503422/sec10 , and https://www.regjeringen.no/no/dokumenter/meld -st-49-
20122013/id737145/sec10 .  
3.2.4   Export support  and promotion  
3.88.   Innovation Norway is the Government's main entity for business development, innovation, 
and export and investment promotion. It has a variety of programmes and services in order to 
support start -ups, improve opportunities for growth companies, and promote the 
internationalization of businesses. It is owned by the Ministry of Trade, Industry, and Fisheries 
(51%) and the county municipalities (49% ) and its main role is to support profitable business 
development. As part of its mandate, Innovation Norway has a number of financing products to 
support businesses, and it provides a number of loans, grants, or guarantees.99 
3.89.   In terms of support for export s, Innovation Norway mainly provides international advisory 
services, an international network for Norwegian companies abroad, organization of trade fairs, 
and information on trade regulations through the Export Centre, i.e. exporter's handbook and 
similar  materials. According to its 2016 Annual Report, Innovation Norway provided more export 
assistance than in any previous year. Through its domestic offices and 35 offices abroad, it helped 
more than 850 companies with international market consultancy servic es, an increase of 25% from 
the previous year. It also helped over 300 companies participate in international trade fairs. In 
2016, a new programme aimed at export growth called "Global Growth" was launched to provide 
information on expertise, customer con tact, and international exposure to groups of companies.100 
Furthermore, Innovation Norway cooperates with the Norwegian Export Credit Guarantee Agency 
                                                
99 These include: company and project financing; start -up grants; research and development contracts; 
environmental technology scheme; agr iculture; seafood and fishing; agricultural tourism programme; reindeer 
programme; wood -based innovation programme; bioenergy programme; bio refinement programme; 
investment funds in Russia and Eastern Europe; seed capital; SkatteFUNN; industry -oriented su bsidy for the 
Arctic and Russia.  
100 Innovation Norway online information. Viewed at: http://www.innovasjonnorge.no/en/arsrapport ---
spa-page-en/#side=en_220532 .  WT/TPR/S/373 • Norway  
 
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  (GIEK), Export Credit Norway (Eksportkreditt Norge), and GIEK Kredittforsikring on a number of 
different p rojects.  
3.90.   Pursuant to the Fisheries Export Act, the Norwegian Seafood Council (NSC), a state -owned 
enterprise under the Ministry of Trade, Industry and Fisheries, provides information and support 
similar to that of Innovation Norway but particularly for the  Norwegian seafood sector.101 It is 
involved in providing reports and information, maintaining an export registry, conducting 
marketing activities, and providing market risk management globally. Its main goal is to promote 
trade and consumption of seafood.102 NSC's operations are financed by the export fee on fish and 
fish products (see Section 3.2.2) which amounted to an income of NKr 543 million in 2016. The 
level of the fee has recently been reduced, and for 2017 is estimated to be NKr 400 million.103 
3.91.   The Norw egian Foreign Service also has a role in supporting or promoting exports. Through 
its more than 100 missions abroad, the Foreign Service coordinates events and promotional 
activities, provides information on markets and regulations, assists in business out reach, and gives 
advice on risks and challenges. 104 
3.92.   As part of its customs regime, Norway has special provisions on temporary exports and 
drawback in the case of re -exportation. These provisions provide duty relief to the trader pursuant 
to the rules in the  Customs Act and Customs Regulations.  
3.93.   Regarding export subsidies, Norway continued to provide export subsidies to the agricultural 
sector during the review period, notably for cheese, butter, meat of swine, and certain processed 
agricultural products (see also Section 4.1). According to its most recent notification to the WTO in 
2017 containing data for the 2016 reporting period, Norway had a total budgetary outlay of 
NKr 166.5 million for subsidized exports.105 
3.2.5   Export finance, insurance , and guarantees  
3.94.   The m ain source of export financing in Norway when it comes to loans has traditionally been 
Eksportfinans ASA. Eksportfinans ASA is owned partly by the State (15%) and the remainder, 
85%, by 23 banks in Norway. In 2011, the Storting decided to create a state -owned entity for 
export finance, Export Credit Norway (Eksportkreditt Norge) (see Section 3.2.5.3) for all new 
officially supported export loans. As a result, Eksportfinans' role after 2011 has been to manage its 
portfolio of existing loans which is graduall y reduced as these loans are repaid.106 The last officially 
supported export loan matures in 2029. Eksportfinans had total assets of NKr 33.2 billion in 2016 
and NKr 18.3 billion in loans outstanding; both of which declined compared to previous years, 
reflec ting its reduction  in activity.107  
3.2.5.1   Export credit guarantees  
3.95.   The Norwegian Export Credit Guarantee Agency's (GIEK) purpose is to contribute to 
Norwegian exports and investments abroad by issuing guarantees on behalf of the Government. 
Guarantees secure finan cing for foreign purchasers of Norwegian products, loans for exporter's 
production costs, and a variety of other risks. The guarantees cover both political and commercial 
risks. GIEK is an administrative enterprise meaning GIEK is not its own legal entity,  but a part of 
the Norwegian State. The Ministry of Trade, Industry and Fisheries and the Minister of Trade and 
Industry is constitutionally responsible for GIEK's guarantee schemes, but the schemes are 
independently implemented by GIEK. GIEK has two expor t guarantee schemes and, since 
                                                
101 Act No. 9 of 27 April 1990.  
102 Norwegian Seafood Council online information. Viewed at: https://en.seafood.no/about -norwegian -
seafood -council/about -us/.  
103 Norwegian Seafood Co uncil online information. Viewed at: 
https://seafood.azureedge.net/4a1aa6/contentassets/3137e23e3ff04c2a832744bdea9da051/arsmelding -
2016.pdf.  
104 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/topics/foreign -
affairs/busine ss-cooperation -abroad/innsikt/promotion -business -interests/id2076766/ .  
105 WTO document G/AG/N/NOR/95.  
106 Eksportfinans online information. Viewed at: https://www.eksportfinans.n o/news -archive/staten -
overtar/?ln=uk .  
107 Eksportfinans online information. Viewed at: 
https://www.eksportfinans.com/media/132880/eksportfinans -annual -report -2016.pdf.  WT/TPR/S/373 • Norway  
 
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  January  2018, there are also three domestic guarantee schemes, one for energy and two within 
the maritime sector.108 Each guarantee scheme is subject to a maximum exposure limit, a defined 
purpose, and specific regulations. GIE K issued its first guarantees under the power purchase 
guarantee scheme in October 2017. In 2016, GIEK contributed to export contracts worth 
NKr 30.5 billion.109 
3.96.   GIEK mainly guarantees the export of goods and services from Norway or when a 
transaction promot es Norwegian value creation. Although it supplements the banking and finance 
sector, GIEK is a major player in certain markets, and it guarantees most of Export Credit 
Norway's loans. There are many products that GIEK offers, but buyer credit guarantees ar e the 
most prevalent; the others being letter of credit guarantee, building loan guarantee, bond 
guarantee, supplier credit guarantee, contract guarantee, investment guarantee, power purchase 
guarantee, and tender guarantee. All of these serve to reduce ri sks to either the buyer, the 
exporter, or the financial institutions. In 2017, GIEK launched a new product, the production loan 
guarantee, that finances the production costs related to a specific export contract.110 Furthermore, 
in 2017, a new buyer credit g uarantee for export -related investments in Norway was also 
launched. In January 2018, a new ship guarantee scheme was implemented, offering buyer credit 
guarantees for Norwegian buyers' purchases from Norwegian shipyards when the vessels are to be 
used in Norway.  
3.97.   The majority of GIEK's outstanding guarantee liabilities are in the oil and gas sector, about 
85%. The sector has seen a decline in recent years due to low oil prices. As such, there has been a 
general downturn in GIEK's business, as reflected in a decrease in new guarantees and in 2016 
also in guarantee liabilities (Table 3.16). Furthermore, this sector has weak debt service capacity 
resulting in several debt restructurings in recent years. In order to reduce losses and preserve 
assets, GIEK has c reated limited liability companies to take ownership of certain companies/assets 
when necessary in recent years.111 
Table 3.16 GIEK, key figures, 2012 -16 
(NKr billion, unless otherwise noted)  
 2012  2013  2014  2015  2016  
Outstanding guarantee liabilities  
- in the oil and gas sector  77.5 
65 81.0 
68.4 89.3 
76.8 100.2  
87.2 98 
84.2 
Export contracts triggered  27.3 28 28.5 44.8 30.5 
New guarantees (amount)  
(no.) 15.2 
198 24.2 
182 21.4 
163 19.2 
126 16.7 
93 
Current guarantees (no.)  476 443 458 431 419 
Guarantee revenues  1.4 1.5 1.5 1.6 1.5 
Paid out under guarantee schemes  0.02 0.05 0.06 1.2 3.2 
Exposure limit  148 165 173 173 173 
Source:  GIEK Annual Reports, 2013 -16. GIEK online information. Viewed at: 
https://www.giek.no/gehttps://www.giek.no/getf ile.php/132772/web/Dokumenter/GIEK,_12953_An
nual%20Report_ENGELSK_WEB.pdftfile.php/133779/web/Dokumenter/GIEK_2016_%C3%85rsrappo
rt_ENGELSK%20KORT.pdf , and 
http://www.nsd .uib.no/polsys/data/filer/aarsmeldinger/AE_2013_4700.pdf .  
3.2.5.2   Short -term export -credit insurance  
3.98.   Norway's short -term export insurance scheme has traditionally been part of GIEK since 
1922 and a separate subsidiary of GIEK since 2001, known as GIEK Kredittfors ikring AS (GK). The 
                                                
108 The building loan guarantee scheme secures bank loans to shipyards for shipbuilding, but the ship 
does not need to be exported. The ship guarantee scheme secures loans for Norwegian buyers' purchases from 
Norwegian yards when the vessels are to be used in  Norway. The power purchase guarantee scheme is 
designed to provide industry with long -term power purchase agreements.  
109 GIEK and Export Credit Norway will often, but not always, be involved in the same contracts. GIEK 
online information. Viewed at: https://www.giek.no/overview/ .  
110 GIEK Annual Report, 2016. GIEK online information. Viewed at: 
https://www.giek.no/getfile.php/133779/web/Dokumenter/GIEK_2016_%C3%85rsrapport_ENGELSK%20KORT
.pdf.  
111 GIEK Annual Report, 2016. GIEK online information. Viewed at: 
https://www.giek.no/getfile.php/133779/web/Dokumenter/GIEK_2016_%C3%85rsrapport_ENGELSK%20KORT
.pdf.  
 WT/TPR/S/373 • Norway  
 
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  separation of GK from GIEK was a response to the new ESA guidelines on short -term export -credit 
insurance. The state's ownership was managed by GIEK until the end of 2014, and was transferred 
to the Ministry of Trade, Industry and Fishe ries on 1 January 2015.112 GK provides short -term 
credit insurance up to a maximum of two years for both Norwegian and foreign exporters. The 
company emphasizes good, responsible access to credit insurance for small and medium -sized 
businesses. GK operates o n a commercial basis and with a view to delivering competitive returns. 
GK issues insurance for receivables to more than 150 countries, but most of the business is 
concentrated in the European Union, i.e. 79% in 2016.113 In 2016, GK insured a volume of 
NKr 43.3 billion and the net earnings were NKr 3.4 million.114 
3.99.   GK has two main products: credit insurance, insuring the companies' total credit sales; and 
the single risk product, covering a single project or contract known as a supplier's credit 
guarantee. Fish export companies account  for approximately 70% of the portfolio, and general 
industry the remaining part. The volumes insured have fallen from NKr 46.0  billion in 2013 to 
NKr 43.3 billion in 2016.  
3.2.5.3   Export credits   
3.100.   Norway's dedicated export credit facility, Export Credit Norway (Eksportkreditt Norge), was 
established in July 2012 to provide export financing to Norwegian and foreign firms that purchase 
Norwegian goods and services for export. Export Credit Norway's only task is to manage the 
State's export cre dit scheme. Export  Credit Norway is wholly owned by the Norwegian State and is 
administered by the Ministry of Trade, Industry, and Fisheries pursuant to the Export Credit Act 
and the Export Credit Regulations.115 It provides medium - and long -term financing for companies 
in the form of CIRR (commercial interest reference rate/fixed rate) or market (floating rate) loans. 
It may provide financing for up to 85% of the contract value and all loans must be guaranteed by 
an export credit guarantee agency such as GI EK or commercial financial institutions with a rating 
that is acceptable according to the Export Credit Regulations. Furthermore, its lending activities 
are backed by the Norwegian state. As part of its objectives, it ensures that export credits are 
offere d on comparable terms to those offered by competing countries.  
3.101.   Since its inception in 2012, Export Credit Norway has gradually increased its lending 
balance from NKr 45 billion to 76 billion in 2016 (Table 3.1 7). During the same period, interest 
income has slightly increased and the percent of CIRR loans has also increased. Export Credit 
Norway regularly receives about NKr 100 million per year from the state for its operations 
(Table  3.17). Loans disbursed have been reduced due to the current situation in the Norwegian 
offshore/shipping sector which is a considerable sector in the loan portfolio.116  
3.102.   In terms of industries supported based on the lending balance, Export Credit Norway's 
loans go mainly to the shippin g industry, producers of equipment for the oil and gas industry, and 
shipping equipment manufacturers. Export Credit Norway also places  a strong emphasis on 
corporate social responsibility per its mandate. As such, it incorporates various environmental and  
social conditions, and anti -corruption initiatives in the context of its loan transactions.  
3.103.   There have been several developments for Export Credit Norway during the review period 
and since its inception. Developments in 2015 included a greater focus on me eting the needs of 
small and medium -sized businesses and revising the regulations and credit policy limits. The 
company underwent restructuring in 2016 to streamline its operations and offer better services. In 
2017, Export Credit Norway's mandate was expa nded to include the financing of offshore fish 
farms so as to promote new fish farming  technologies.  
                                                
112 The Ministry of Trade, Industry and Fisheries proposed this to the Parliament in the annual state 
budget for 2015 (Prop. 1 S (20 14-2015)) which was then decided by the Norwegian Parliament (Innst. 8 S 
(2014 -2015)).  
113 GIEK Kredittforsikring online information. Viewed at: https://www.giekkreditt.no/OmOss  and 
https://www.giekkreditt.no/ResourceServlet/jbbb98d66f1749539b02aafbafd22e9c . 
114 GIEK Kredittforsikring online information. Viewed at: 
https://www.giekkreditt.no/ResourceServlet/jbbb98d66f1749539b02aafbafd22e9c . 
115 Act No. 57 of 22 June 2012. Lovdata online information. Viewed at: 
https://lov data.no/dokument/NL/lov/2012 -06-22-57; Regulation No. 573 of 22 June 2012. Lovdata online 
information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2012 -06-22-573.  
116 Export Cre dit Norway online information. Viewed at: https://www.eksportkreditt.no/wp -
content/uploads/2017/02/%C3%85rsrapport -2016_EN.pdf . WT/TPR/S/373 • Norway  
 
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  Table 3.17 Export Credit Norway, key figures, 2013 -16 
(NKr million, or as indicated)  
 2013  2014  2015  2016  
Total lending balance  45,023  60,858  76,499  76,505  
Loans, total disbursed  23,237  25,117  17,863  10,121  
Application volume  172,189  133,247  120,088  209,143  
Loan applications received (No.)  409 308 275 278 
CIRR loans (%)  38 58 59 61 
Market loans (%)  62 42 41 39 
Interest income  987 1,159  1,557  1,711  
Fee income  62 48 41 20 
Operating and investment grants from the Government  105 100.5  100.0  100.8  
Operating expenses  85.2 93.3 101.7  106.7  
Profit/loss  12 5.6 1.1 -2.2 
Source:  Export Credit Norway, Annual Reports 2013 -16 and information received from the authorities.  
3.104.   In the state budget for 2018, the Government launched a new loan and guarantee scheme 
for Norwegian buyers' purchases from Norwegian shipyards when the vessels are to be used in 
Norway. The sch eme aims to assist Norwegian companies in achieving financing and thus increase 
output at Norwegian  shipyards.117 The guarantee scheme (GIEK) is operational as of January 
2018, whereas the lending scheme (Export Credit Norway) will be operational later in 20 18. Loans 
offered as part of this scheme from Export Credit Norway will be on commercial market terms (and 
not CIRR) and GIEK will issue guarantees on pari passu  terms with commercial financial 
institutions.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.105.   The EEA Agreement provides a legal framework and practices for the granting of state aid 
in Norway that matches the disciplines applicable in the European Union in all areas except for 
agriculture and fisheries (i.e. sectors not covered by the A greement). As a general rule, state aid is 
prohibited as it has the potential to distort  competition and intra -EEA trade, and could work as a 
disguised form of protection in the absence of trade barriers. However, exemptions to the general 
rule exist, as i t is recognized that government intervention may be required in response to market 
failure or for other justified reasons. The stated objective in the EEA is to achieve less and better 
targeted aid.  
3.106.   The EFTA Surveillance Authority  assumes the same function s vis-à-vis the three EFTA EEA 
States as does the European Commission in respect of its 28 EU member States. In principle, no 
public money may be disbursed in Norway unless the measure has been notified to, and approved 
by, the EFTA Surveillance Authority.  The Authority may accept the proposed scheme, approve it on 
certain conditions, or prohibit it. The Norwegian Government may challenge the Authority's 
decision before the EFTA Court. The Court also has the final word in cases brought before it (and 
the EF TA Surveillance Authority) by private parties, e.g. the competitors to beneficiaries of 
approved schemes. Governments are obliged to recover expeditiously any aid declared illegal.  
3.107.   Some adjustments in the EEA state aid regime have taken place since Norway' s last trade 
policy review. During 2012 and 2013, the EFTA Surveillance Authority adopted new guidelines for 
(i) short -term export -credit insurance; (ii) compensation for public services provided by private 
economic agents; (iii) national regional aid118; (iv) temporary state aid to troubled banks; and 
(v) revised guidelines for state aid in the deployment of broadband networks. As part of EU 
reforms to modernize its aid framework and decentralize the monitoring of aid measures, the 
revised General Block Exem ption Regulation (GBER) entered into force simultaneously in the 
                                                
117 Export Credit Norway onli ne information. Viewed at: 
https://www.eksportkreditt.no/en/2017/10/12/new -ship-financing -scheme/ .  
118 The regional aid map (2014 -2020) allows investment aid to be grante d in areas that make up 
approximately 25% of Norway's total population. Large enterprises are eligible to have up to 15% of their 
investments costs covered. The permissible aid level increases to 25% for medium -sized enterprises, and 35% 
for small business es.  WT/TPR/S/373 • Norway  
 
- 73 - 
 
  European Union and in the EEA EFTA States on 1  July 2014.119 The Regulation simplified the 
granting procedure, provided more leeway for member States to grant "good aid" without scrutiny, 
and introduced ex-post requirements, including the evaluation of large schemes. Norway has been 
an active user of the revised GBER, which exempts broad categories of aid measures from prior 
notification to the EFTA Surveillance Authority, claiming 95 block -exem pted aid measures in 
2014-15, a further 34 measures in 2016, and 40 in 2017.120 With an increasing share of aid 
measures being block -exempted, the EFTA Surveillance Authority has been shifting its focus to 
ex-post evaluation and monitoring of new measures. T he Authority has therefore imposed new 
transparency and accountability obligations on Norway, Iceland, and Liechtenstein.  
3.108.   Norway's Act No. 117 of 27 November 1992 relating to state aid was accordingly amended 
in June 2016. A new section (paragraph 2(a)) wa s added to the law to establish a national register 
of state aid.121 Henceforth, all public grants exceeding €500,000 per named beneficiary must be 
notified by the granting body (central government as well as local administrations) for the support 
to be vali d.122 The requirement applies to all aid granted to large undertakings and small and 
medium -sized enterprises irrespective of the type of administrative decision taken, or whether the 
aid has been approved by the EFTA Surveillance Authority or is exempted un der the GBER. As of 
January 2018, Norway's new state aid register contained more than 3,500 entries.123 
3.109.   Over the period 2013 -17, the EFTA Surveillance Authority issued 98 decisions relating to 
aid schemes proposed or maintained by Norwegian  authorities. Most  of the cases were concluded 
at the preliminary investigation stage with the Authority raising no objections to the proposed 
measures.124 Formal investigations were opened in seven instances. The Authority's final decisions 
were positive (i.e. compatible aid  or no aid) with respect to three aid schemes, i.e. regarding the 
inclusion of ambulant services in the regionally differentiated social security contributions scheme; 
the public services performed against compensation by the privately owned transporter 
Hurtigruten; and support provided by the local authorities to a football club for the construction of 
a new home ground. Negative determinations (i.e. prohibited aid) were last reached in 2015 in 
two cases; one involving aid provided by Innovation Norway to Finnfjord AS,125 a producer of 
ferrosilicon, the other concerning excessive compensation for bus transportation services in the 
county of Aust Agder. A summary of the cases concluded in 2016 and 2017 is provided in 
Table  A3.1.  
3.110.   The EFTA Surveillance Authority  prepares an Annual State Aid Scoreboard for its 
three  member States, using the same criteria the European Commission applies to the EU member 
States. According to the latest available information, Norway's non -agricultural state aid, as 
defined under EEA rules, has been roughly stable (measured in euros) at €2.5 -3 billion annually in 
recent years. Regional development schemes account for about one third of this support126, and 
nearly twice as much as the value of aid provided to innovation, research, and dev elopment 
(Table  3.18).127 Incentives granted to "green measures", particularly from the Norwegian Energy 
Fund, have become gradually more important, and amounted to nearly €1 billion in 2015. Tax 
                                                
119 Commission Regulation (EU) No. 651/2014 of 17 June 2014 declaring certain categories of aid 
compatible with the internal market in application of Articles 107 and 108 of the Treaty. Council Regulation 
No. 994/98 of 7 May 1998 (amended in 2013) empow ers the Commission to declare specific categories of state 
aid compatible with the EU Treaty as long as certain conditions are fulfilled.  
120 Prior to 2014, Norway also availed itself of the simplified aid -granting procedures laid down in 
Commission Regulati on (EC) No. 800/2008 of 6 August 2008 (GBER).  
121 Regulation No. 834 of 29 June 2016 (as amended) provides more detail regarding the registration 
requirement.  
122 The threshold refers to the amount of the specific grant, or the annual benefit if the aid is granted as 
a tax concession.  
123 The register is accessible online from Brønnøysundregistrene at https://data.brreg .no/rofs/nob . 
124 The Authority thus concluded either that the schemes were compatible with the functioning of the 
EEA Agreement or that they involved no aid according to the rules.  
125 The EFTA Surveillance Authority approved a grant from Enova SF of NKr 175 million for the 
replacement of a cooling system with an energy recovery unit in 2011. Following cost overruns, Finnfjord AS 
applied to Enova for additional aid, but its application was rejected. However, Finnfjord AS also approached 
Innovation Norway, whic h agreed to provide NKr 16 million in additional aid, a decision eventually overturned 
by the EFTA Surveillance Authority.  
126 The main component, by far, is the reduction in social security contributions applicable in certain 
areas facing de -population. The  scheme accounted for €920 million in revenue foregone in 2015.  
127 A major portion of the support to research and development is provided through a tax credit scheme 
(Skattefunn).  WT/TPR/S/373 • Norway  
 
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  concessions account for approximately 70% of Norway's non -agricultural support, with grants 
making up most of the remaining aid.128 
Table 3.18 State aid granted by Norway, 2012 -15 
€ million  
Measure/Year  2012  2013  2014  2015  
Culture  47.66  56.49  93.80  104.48  
Employment  114.99  108.30  104.20  58.73  
Environmental protection including energy saving  878.77  693.09  724.31  956.55  
Promotion of export and internationalization  60.07  45.97  44.89  41.90  
Regional development  980.30  992.64  1,015.76  941.26  
Research and development including innovation  457.64  490.17  525.21  590.58  
Sectoral development  0 2.05 21.63  15.72  
SME including risk capital  11.30  11.27  26.83  14.47  
Training  19.15  18.02  15.95  29.94  
Other  0 0 0 0.02 
Maritime transport  394.35  264.72  202.92  216.45  
Other transport  0 0.15 0.08 0 
Total aid  2,964.22  2,682.87  2,775.58  2,970.10  
Source:  EFTA Surveillance Authority, State Aid Scoreboard 2016.  
3.111.   Norway notifies certain aid schemes to the WTO in accordance with Article XVI:1 of the 
GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures. According 
to the latest notification (December 2017), Norway's support to non -agricul tural activities 
amounted to less than NKr 2 billion in 2015 (Table 3.19). The reported tax concessions are 
administered by the Ministry of Finance. In several other instances, the aid schemes are 
administered by Innovation Norway on behalf of the responsi ble Ministry.  
Table 3.19 Industry -wide and selected sector -specific support programmes, 2015 and 
2016  
NKr million  
Initiation 
year Expiry  Type of programme/project  Measure  Estimated 
subsidy in 
2015  Estimated 
subsidy in 
2016  
Research and development   87.5 85.0 
2006 2016 Wood -based innovation scheme  Grant  27.6 19.5 
2003 - Bioenergy scheme  Grant  59.9 65.5 
Disadvantaged  regions   486.9  418.5  
1998 2020 Regional transport aid  Grant  16.9 14.5 
1987 - Regional investment Grant and 
risk loans  220.0  192.0  
.. - Regional development aid  Grant  230.0  212.0  
2015 - Regional development at Svalbard  Grant  20.0 0 
Specific sector support   .. 337.9  
1969 2020a Press grant scheme  Grant    
  - Nationwide secondary media   .. 157.9  
  - Other secondary media   .. 65.6 
  - Leading and sole media   .. 76.7 
  - Nationwide weekly media   .. 12.9 
  Promoting Norway's space industry   24.2 24.9 
General measures   578.0  688.0  
1991/2000  - CO2 taxes and excise on mineral oil, 
exemptions and rebates by beneficiary:  Tax 
concession    
  - Vessels used for fishing and catching 
(CO 2 tax)  120.0  130.0  
  - Fish oil and fish meal industry (CO 2 tax)  1.0 3.0 
  - Commercial greenhouses   15.0 20.0 
  - Domestic freight and passenger transport   60.0 80.0 
  - Offshore vessels   23.0 24.0 
  - Manufacturing and mining (not covered 
by EU ETS)   16.0 18.0 
  - Pulp and paper industry   7.0 58.0 
                                                
128 Soft loans are rarely used as a form of public aid in Norway, and the incid ence of equity participation 
and guarantees is negligible.  WT/TPR/S/373 • Norway  
 
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  Initiation 
year Expiry  Type of programme/project  Measure  Estimated 
subsidy in 
2015  Estimated 
subsidy in 
2016  
  - Production of pigments and colouring 
agents   1.0 2.0 
  - Fish oil and fish meal industries   25.0 23.0 
  - Vessels used for fishing and catching   310.0  330.0  
Fisheries   26.0 35.0 
1964 - Transport support  Grant  26.0 33.0 
 - Sealing  Grant  0 2.0 
Forestry   362.2  388.2  
1965 - Forest Trust Fund  Tax 
concession  121.0  125.0  
2017 - Timber Account  Tax 
concession  0 0 
1971 - Forest management planning  Grant  29.1 24.6 
2004 - Subsidies for industrial and environmental 
purposes in forestryb Grant  159.8  177.0  
1976 - Subsidies for forest infrastructure  Grant  42.2 66.2 
Total support (excluding agriculture)    1,939.7  
Agriculture   12,811.5  .. 
  Support under Chapter 1150 of the central 
government budget     
  - Agricultural Development Fund   1,177.0  .. 
  - Market regulation   24.4 .. 
  - Price support   2,944.2  .. 
  - Other direct payments to producers   8,665.9  .. 
Total support (including agriculture)   .. .. 
.. Not available.  
- No expiry date.  
a The maximum duration authorized by the EFTA Surveillance Authority is six years.  
b This scheme includes: (1) subsidies for silviculture; (2) subsidies for construction of forest roads; 
(3) subsidies for conservation and enhancement of environmental values in forestry; (4)  national grant 
for environmental considerations (extraction of round wood in difficult terrain using cable logging 
systems a nd horses); and (5) subsidies for the extraction of energy wood other than fuel wood.  
Source:  WTO document G/SCM/N/315/NOR, 11 December 2017; and information provided by the 
authorities.  
3.112.   In addition to the programmes detailed above, Norway also participat es in EU framework 
programmes on research and other programmes of EEA relevance through the EEA Agreement, 
which also regulates the participation costs of the EFTA members.  
3.3.2   Standards and other technical  requirements  
3.113.   Like other members of the EEA, the legal basis for technical requirements, standards, 
conformity assessment, and accreditation is that of the European Union, and the Blue Guide by the 
European Commission sets out the framework for technical regulations, st andards, and conformity 
assessment that applies to the members  of the EEA.129 Therefore, for most products, Norway 
follows the "New Approach" whereby common essential requirements for a product sector or to 
meet a particular risk are set out in legislation, and the technical specifications to achieve these 
essential requirements are in voluntary harmonized standards.130 Market operators are not 
required to use these standards to meet the essential requirements, and alternative methods of 
demonstrating complianc e with the regulatory requirements are the same in Norway as in the 
European Union and they are set out in the Blue Guide.  
                                                
129 Commission Notice: The "Blue Guide" on the implementation of EU products rules 2016 
(2016/C  272/01), OJ C 272, 26 July 2016. Viewed at: http://ec.europa.eu/DocsRoom/documents/18027/ . 
130 WTO document WT/TPR/S/357, Section 3.3.1.  WT/TPR/S/373 • Norway  
 
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  3.3.2.1   Technical regulations  
3.114.   The New Legislative Framework is set out in EEA legislation under Decision of the EEA Joint 
Committee No. 126/2 012131 under which several  EU regulations and decisions were adopted into 
the EEA Agreement, including:   
 Regulation (EC) 765/2008 setting out the requirements for accreditation and the market 
surveillance of products132; 
 Decision 768/2008 on a common framework  for the marketing of products, which 
provides a template for future product harmonization legislation133; and  
 Regulation (EC) 764/2008 laying down procedures relating to the application of certain 
national technical rules to products lawfully marketed in another EEA country.134 
3.115.   At end -2017, product legislation for several areas in the EEA had been reviewed and 
harmonized based on the New Legislative Framework under which the essential requirements for 
products are set out in the legislation135. By end -2017, ou t of 20 regulations and directives on 
product harmonization in the European Union, Norway had transposed 17 into national 
legislation.136 Areas not covered by specific legislation must comply with the General Product 
Safety Directive137 or product specific leg islation.  
3.116.   The New Legislative Framework does not apply to all products. The "old approach" of 
detailing technical requirements is still applied to some products, such as motor vehicles, while 
different approaches to EEA harmonization are followed in differ ent sectors such as 
pharmaceuticals, chemicals and cosmetics. In addition, construction products are also covered by 
harmonization regulations although the authorities noted that the content and concepts used were 
different compared to other systems, in pa rticular the mandatory nature of the harmonized 
standards under the Construction Product Regulation system.  
3.117.   As with other EU legislation with EEA relevance, harmonized regulations of the 
European  Union are adopted by amendments to the EEA Agreement through  decisions of the EEA 
Joint Committee, and their transposition into national legislation and application are subject to the 
oversight of the EFTA Surveillance Authority and the EFTA Court. The EEA Joint Committee, which 
is made up of the EFTA EEA members a nd the Commission, may decide to adapt the technical 
regulations before adoption, although at end -2017 there had been no adaptations to the directives 
and regulations on product harmonization that have been made by the Joint Committee.  
3.118.   Within the EEA, the principle of mutual recognition applies to all goods or aspects of goods, 
including those not subject to EU harmonization legislation. This ensures products lawfully put on 
the market in one EEA country can be marketed in another even if the product does n ot fully 
                                                
131 Decision of the EEA Joint Committee No. 126/2012 of 13 July 2012 amending Annex II (Technical 
regulations, standards, testing and certification) to the EEA Agre ement.  
132 Regulation (EC) No. 765/2008 of the European Parliament and of the Council of 9 July 2008 setting 
out the requirements for accreditation and market surveillance relating to the marketing of products and 
repealing Regulation (EEC) No. 339/93.  
133 Decision No. 768/2008/EC of the European Parliament and of the Council of 9 July 2008 on a 
common framework for the marketing of products, and repealing Council Decision 93/465/EEC.  
134 Regulation (EC) No. 764/2008 of the European Parliament and of the Council of 9 July 2008 laying 
down procedures relating to the application of certain national technical rules to products lawfully marketed in 
another Member State and repealing Decision No. 3052/95/EC.  
135 WTO document WT/TPR/S/357/Rev.1 13 October 2017, Section 3. 3.1.2.  
136 Toy safety - Directive 2009/48/EU, Transportable pressure equipment - Directive 2010/35/EU; 
Restriction of hazardous substances in electrical and electronic equipment - Directive 2011/65/EU; 
Construction products - Regulation (EU) No. 305/2011;  Pyrotechnic articles - Directive 2013/29/EU; 
Recreational craft and personal watercraft - Directive 2013/53/EU; Civil explosives - Directive 2014/28/EU; 
Simple pressure vessels - Directive 2014/29/EU; Electromagnetic compatibility - Directive 2014/30/EU; 
Non-automatic weighing instruments - Directive 2014/31/EU; Measuring instruments - Directive 2014/32/EU; 
Lifts - Directive 2014/33/EU; Equipment for explosive atmospheres (ATEX) - Directive 2014/34/EU; Radio 
equipment - Directive 2014/53/EU; Low voltage - Directive 2014/35/EU; Pressure equipment - Directive 
2014/68/EU; Marine equipment - Directive 2014/90/EU.  
137 Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general 
product safety.  WT/TPR/S/373 • Norway  
 
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  comply with the technical rules of the other EEA country. However, the principle does not preclude 
prohibitions or restrictions justified on grounds of legitimate public interest.  
3.119.   Norway and other EEA EFTA States must notify the EFTA Surveillance Authority of plans to 
develop a national technical regulation, and allow time for comments from other EEA members. 
Draft national technical regulations are notified and maintained in the TRIS (Technical Regulations 
Information System) database in accordanc e with Directive (EU) 2015/1535, which superseded 
Directive 98/34/EC.138 From end -2011 to September 2017, Norway made 95 notifications to the 
TRIS database, although this includes some measures that are not considered technical regulations 
and/or state the d raft has no significant impact on international trade.139  
3.3.2.2   Standards  
3.120.   Norway also applies the EEA rules on standardization as set out in Regulation (EU) 
No. 1025/2012 on European standardization.140 This Regulation establishes rules for cooperation 
between the European standardization organizations, national standardization bodies, and the 
European Commission. It also sets out rules for the establishment of European standards, the 
roles of the bodies responsible for standardization, the role of standards as volu ntary technical or 
quality specifications, the financing of European standardization, and stakeholder participation in 
European standardization.  
3.121.   There are three standards organizations in Norway:  
 Standards Norway (SN) is a private and independent organizat ion partly funded by 
grants from the Ministry of Trade, Industry and Fisheries. SN is a member of the 
European Committee on Standardization (CEN) and the International Organization for 
Standardization (ISO). There are about 16,500 valid Norwegian Standards , and 
SN publishes about 1,200 new ones each year.  
 The Norwegian Electrotechnical Committee (NEK), a private, independent, and 
autonomous non -governmental organization, is a member of the European Committee 
for Electrotechnical Standardization (CENELEC) and the International Electrotechnical 
Commission (IE C). There are about 15,700 valid Norwegian electrotechnical standards 
mainly based on publications from the IEC and CENELEC with about 150 Norwegian 
electrotechnical standards.  
 The Norwegian Communications Authority (NKom), which is an autonomous agency o f 
the Ministry of Transport and Communications. NKom is responsible for standards for 
post and telecommunications, and it is a member of the European Telecommunications 
Standards Institute (ETSI) and the International Telecommunications Union (ITU). Nkom 
does not produce standards but transposes standards from ETSI.  
3.122.   In addition : 
 Standard Online AS is responsible for the marketing and sale of standards and related 
products from SN and NEK141;  
 the trade associations Nelfo (Electrical Contractors' Association) and Energy Norway (an 
association of companies involved in production, distribution and trading of electricity) 
sell Norwegian translations of electro technical standards on behalf of NEK; and  
                                                
138 At end -September 2017, a Draft Joi nt Committee Decision was under consideration to incorporate 
Directive (EU) 2015/1535 into the EEA Agreement. Viewed at: http://www.efta.int/eea -lex/32015L1535 . 
139 DG-GROWTH, TRIS database. Viewed at: http://ec.europa.eu/growth/tools -databases/tris/en/ . 
140 Decision of the EEA Joint Committee No. 9/2014 adopted Regulation (EU) No. 1025/2012 of the 
European Parliament and of the Council of 25 October 2012 on European standardization, amending Council 
Directives 89/686/EEC and 93/15/EEC and Directives 94/9/EC, 94/25/EC, 95/16/EC, 97/23/EC, 98/34/EC, 
2004/22/EC, 2007/23/EC, 2009/23/EC and 2009/105/EC of the European Parliament and of the Counc il and 
repealing Council Decision 87/95/EEC and Decision No. 1673/2006/EC of the European Parliament and of the 
Council. Implemented in Norway through Regulation of the Ministry of Food a nd Fisheries No. 1164 of 
12 September 2014.  
141 Standard Online is owne d by SN (80%) and NEK (20%).  WT/TPR/S/373 • Norway  
 
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   SN manages and publishes NORSOK142 standards which are owned by the Federation of 
Norwegian Industries, the Norwegian Oil and Gas Association, and the Norwegian 
Shipowners' Association. NORSOK standards are developed to ensure adequate safety, 
value adding and cost effectiveness for petroleum industry developments and 
operations. Furthermore, as far as possible, NORSOK standards are intended to replace 
oil company specifications and serve as references in the authorities' regulations. There 
are currently about 79 national NORSOK standards in active use.  
3.123.   As members of t he CEN and CENELEC, SN and NEK monitor and delegate experts to their 
technical committees that draw up standards , as coordinated by the CEN -CENELEC Management 
Centre in Brussels. NKom participates in the work of ESTI along with the other members (which in 
the case of ESTI include non -governmental entities such as companies and universities) to develop 
telecommunications standards.  
3.124.   When a new standard has been developed by one of the European standards 
organizations, conflicting national standards should be withdrawn.143 Furthermore, when work on a 
European standard is started in CEN or CENELEC, a standstill procedure applies to national work 
on the same subject, and the work programme of national standards must be reported at least 
annually by each national st andardization body. In the case of harmonized standards, standstill 
and withdrawal are compulsory. Harmonized standards are those created following a request from 
the European Commission to CEN, CENELEC, or ESTI, with references and titles published in the  
Official Journal of the European Union. After being transposed into identical national standards by 
the national standard bodies, there is a presumption of conformity with the corresponding 
essential requirements for a product made in compliance with the standard. However, use of the 
standard is not required but the burden of proving conformity with the essential requirements 
rests with the manufacturer.144  
3.125.   At end -June 2017, CEN and CENELEC had 20,202 standards and harmonization documents 
in their portfolio  of European Standards, and Norway had an implementation rate of over 99%. Of 
the total portfolio of documents for CEN, 68% were based on ISO publications and 32% were 
identical to them. For CENELEC, 22% were based on IEC publications, and 72% were identic al to 
them. Of the total for both CEN and CENELEC, 4,258 were harmonized standards (cited or 
intended for citation in the OJEU), of which 37% were identical to, 6% were based on, and the 
remainder had no relation to ISO/IEC publications.145 
3.126.   In Norway, as in the rest of the EEA, CE marking must be applied whenever required by 
legislation. The marking is applied by the manufacturer as a declaration that the product meets all 
legal requirements for the marking and can be sold throughout the EEA. It is the manufa cturer's 
responsibility to carry out the conformity assessment, set up the technical file, issue the EU 
declaration of conformity, and affix the CE marking to a product. Only then can this product be 
traded on the EEA market.146 
                                                
142 NORSOK was originally an acronym for "the Norwegian shelf's competitive position" which was 
introduced in 1994 to cut costs and improve competitiveness on the Norwegian continental shelf.  
143 CEN-CENELEC Guide 30, p. 8. Viewed at: https://www.cencenelec.eu/standards/Guides/  
Pages/default.aspx . 
144 CEN online information. Viewed at: https://boss.cen.eu/reference%20material/guidancedoc/  
pages/newapproach.aspx . 
145 CEN-CENELEC Quarterly Statistical Pack, 2017 Q2, pp. 3, 6, and 13. Viewed at: 
ftp://ftp.cencenelec.eu/EN/AboutUs/InFigures/CEN -CENELEC_StatPack2017 -Q2.pdf . 
146 Product groups requiring CE marking: Active implantable medical devices; Appliances burning  
gaseous fuels; Cableway installations designed to carry persons; Construction products; Eco -design of energy 
related products; EMC; Equipment and protective systems intended for use in potentially explosive 
atmospheres; Explosives for civil uses; Hot -water boilers; In -vitro diagnostic medical devices; Lifts; Low 
voltage; Machinery; Measuring Instruments; Medical devices; Noise e mission in the environment; 
Non-automatic weighing instruments; PPE; Pressure equipment; Pyrotechnics; Radio equipment; Recreation al 
craft; Restriction of Hazardous Substances in Electrical and Electronic Equipment; Safety of toys; and Simple 
pressure vessels.  WT/TPR/S/373 • Norway  
 
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  3.127.   Norwegian Accreditation (NA) is responsible for the accreditation of conformity assessment 
bodies in Norway. NA is a member of the European cooperation for Accreditation (EA), the 
International Accreditation Forum, and the International Laboratory Accreditation Cooperation.147 
3.128.   When the European Union negotiates mutual recognition agreements, it does so on the 
basis that the third country will conclude a parallel MRA with the EEA. Through the EEA, Norway 
has mutual recognition agreements with:   
 New Zealand (2000), covering pharmaceuticals  (good manufacturing practices (GMP)), 
medical devices, telecommunications terminal equipment, low voltage equipment, 
electromagnetic compatibility (EMC), machinery, and pressure equipment;  
 Australia (2000), covering EMC, pharmaceuticals (GMP), medical dev ices, 
telecommunications terminal equipment, automotive products, pressure equipment, 
machinery, and low voltage equipment;  
 Canada (2001), covering telecommunications terminal equipment, EMC, electrical safety, 
recreational craft, pharmaceuticals (GMP), a nd medical devices;  
 Switzerland (2002), covering machinery, personal protective equipment (PPE), safety of 
toys, medical devices, gas appliances and boilers, pressure equipment, 
telecommunications terminal equipment, equipment and protective systems inten ded for 
use in potentially explosive atmosphere (ATEX), electrical safety and EMC, construction 
plant and equipment, measuring instruments and pre -packages, motor vehicles, 
agricultural and forestry tractors, good laboratory practice (GLP), GMP, inspection  and 
batch certification, construction products, lifts, biocidal products, cableway installations, 
and explosives for civil use;  
 United States, the first (2005) covering marine equipment, and the second (2006) 
covering telecommunications equipment, EMC, a nd recreational craft; and  
 Turkey (2011) covering all sectors.148  
3.3.2.3   WTO and technical barriers  to trade  
3.129.   For 2012 -17, Norway made five notifications to the WTO Committee on TBT (all regular 
notifications), two on fertilizers, two on tobacco products, and one on laser pointers. During this 
period, two specific trade  concerns were raised about Norway's TBT meas ures, one on tobacco 
labelling regulations, and the other an issue first raised in 2008 relating to a regulation on specific 
hazardous substances in consumer products.149 SN is the enquiry  point for Norway under the 
WTO Agreement on Technical Barriers to Tra de (TBT). Norway's notifications to the TBT Committee 
are for national measures only.  
3.3.3   Sanitary and phytosanitary  requirements  
3.130.   The EEA Agreement covers most aspects of sanitary and phytosanitary (SPS) measures 
and, as in other areas, EU legislative changes are incorporated continuously into it through 
decisions of the EEA Joint Committee , including simultaneous implementation in the EU and EEA 
EFTA members for emergency measures and some specific third country regulations (such as the 
list of approved countr ies and establishments). In addition, the EFTA Surveillance Authority 
routinely inspects EEA EFTA members' application of food and veterinary legislation, and 
participates in operating the Rapid Alert System for Food and Feed (RASFF).150 Norwegian food 
and v eterinary legislation is harmonized with the European Union.151 
                                                
147 Norwegian Accreditation online information. Viewed at: http://www.akkreditert .no/no/ . 
148 EFTA online information. Viewed at:  http://www.efta.int/eea/mras . 
149 WTO TBT Information Management System. Viewed at: http://tbtims.wto.org/ . 
150 WTO document WT/ TPR/S/357/Rev.1, 13 October 2017, Section 3.3.2.3.  
151 Norwegian Food Safety Authority online information. Viewed at: 
https://www.mattilsynet.no/language/english/food_and_water/Commercial_import_of_foods_to_Norway/oblig
ations_for_importers_of_foods_to_norway.11700 . WT/TPR/S/373 • Norway  
 
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  3.131.   Several government agencies are responsible for policy, regulation, and legislation relating 
to SPS measures including: the Ministry of Agriculture and Food; the Ministry of Trade, Industry 
and Fisheries; the Ministry of Health and Care Services; the Ministry for Foreign Affairs; and the 
Ministry for the Environment. Responsibility for implementation of the legislation is delegated to 
the Norwegian Food Safety Authority (NFSA) which is the princi pal agency responsible for 
preparation, drafting and implementing food safety and other SPS regulations.  
3.132.   The NFSA represents Norway in a number of committees and working groups under the 
Directorate General for Health and Food Safety of the European Commission, including the 
Standing Committee on Plants, Animals, Food and Feed (PAFF Committee) which is the principal 
regulatory body responsible for delivering opinions on draft implementing measures. The PAFF 
Committee is made up of 14 different section s, each responsible for different aspects related to 
SPS measures.152 In addition, the NFSA represents Norway in five committees that are also 
responsible for specific SPS -related issues :  
 Regulatory Committee under Directive 2001/18/EC on the deliberate rel ease into the 
environment of genetically modified organisms (GMOs);  
 Regulatory Committee under Directive 2009/41/EC on the contained use of GMOs;  
 Standing Committee on Plant Variety Rights;  
 Standing Committee on Zootechnics; and  
 Biocidal Products Committee . 
3.133.   The NFSA is also responsible for Norway's participation in the Rapid Alert System for Food 
and Feed (RASFF) and the TRAde Control and Expert System (TRACES) online system which 
manages official controls  and route planning for imports of animals, semen an d embryos, food, 
feed, and plants which must be accompanied by health certificates and/or trade documents. All 
harmonized certificates for exporting to the EEA are available on TRACES which is used to notify 
the relevant authorities in the importing countr y of the arrival of a consignment.153  
3.134.   Norway is a member of the Codex Alimentarius Commission, and the World Organisation 
for Animal Health (OIE), and a contracting party to the International Plant Protection Convention.  
3.135.   The principal legislation relating t o SPS measures in Norway is the Act Relating to Food 
Production and Food Safety No. 124 of 2003 and supporting regulations, many of which 
incorporate EU legislation into Norway. During the period 2012 -17, several regulations were 
introduced, including : 
 Regulation on Novel Foods No. 1215 of 25 July 2017 which implemented Regulation (EU) 
No. 2015/2283154; 
 Regulation on Common Coordinated Programme for Pesticide Residues in Foodstuffs for 
2017, 2018, and 2019 of 5 August 2017 which implemented Regulation (EU) 
No. 2016/662155; 
                                                
152 Genetically Modified Food and Feed and Environmental Risk; Phytopharmaceuticals; Pl ant Health; 
Propagating Material of Ornamental Plants; Propagating Material and Plants of Fruit Genera and Species; Seeds 
and Propagating Material for Agriculture and Horticulture; Forest Reproductive Material; Vine; General Food 
Law; Biological Safety of the Food Chain; Novel Food and Toxicological Safety; Controls and Import Conditions; 
Animal Nutrition; Animal Health and Animal Welfare. European Commission online information. Viewed at: 
https:/ /ec.europa.eu/food/committees/paff_en . 
153 Directorate -General for Health and Food Safety (DG SANTE) online information. Viewed at: 
http://ec.europa.eu/food/animals/traces_en . 
154 Regulation (EU) 2015/ 2283 of the European Parliament and of the Council of 25 November 2015 on 
novel foods, amending Regulation (EU) No. 1169/2011 of the European Parliament and of the Council and 
repealing Regulation (EC) No. 258/97 of the European Parliament and of the Counc il and Commission 
Regulation (EC) No 1852/2001.  
155 Commission Implementing Regulation (EU) 2016/662 of 1 April 2016 concerning a coordinated 
multiannual control programme of the Union for 2017, 2018 and 2019 to ensure compliance with maximum WT/TPR/S/373 • Norway  
 
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   Regulation on sampling and analysis for the official control of certain pollutants in 
foodstuffs of 7 October 2015 implementing several EU regulations, including Regulations 
(EC) No.  401/2006, (EC) No. 1882/2006, (EC) No. 333/2007, (EU) No. 20 17/644, and 
(EU) No.  2015/705; and  
 Regulation of certain contaminants in foodstuffs of 7 October 2015 implementing 
Regulation (EC) No. 1881/2006156 (as amended) and setting national limits for 
radioactive caesium in some food products and radioactive substan ces in drinking water.  
3.136.   The Norwegian Regulations relating to alien organisms under the Act Relating to the 
Management of Biological, Geological and Landscape Diversity No. 100 of 2009 (the Nature 
Diversity Act) came into force on 1 January 2016. The purpos e of the Regulations is to prevent the 
import, release and spread of alien organisms that have or may have adverse impacts on 
biological or landscape diversity. It includes a general requirement of a permit for the import of 
organisms, and for the release of alien organisms along with a number of exceptions. The 
Regulations also include a prohibition against the import, release and placing on the market of 
31 alien organisms, mainly plants , but also live American Lobster ( Homarus americanus ). Norway 
has not  implemented the EU Regulation 1143/2014 on invasive alien species.  
3.137.   Plant health protection legislation remains the Regulation relating to plants and measures 
against pests and diseases No. 1333 of 2000, last amended in 2016. According to the authorities, 
this remains as national legislation as the EU plant health legislation is not part of the EEA 
agreement. The purpose of the Regulation is to prevent the introduction and spread of pests, to 
control any plant disease outbreaks in Norway, and to safeguard t he production and sale of plants 
intended for planting.  
3.138.   The Gene Technology Act No. 6 of 1993 on living GMOs (including seeds) (last amended in 
2015) sets out the process for approving the use and imports of GMOs. The purpose of the Act is 
to ensure that t he use of GMOs and the production of cloned animals take place in an ethically and 
socially sound manner, in accordance with the principle of sustainable development and without 
health and environmental harm. No authorization is required in Norway for the deliberate release 
of genetically modified organisms (GMOs) that have been authorized in another EEA State in 
accordance with the European Union's GMO Directive (2001/18/EC). However, under the Gene 
Technology Act, a domestic decision to prohibit GMOs can be made and the Norwegian authorities 
may prohibit or restrict the placing on the market of a GMO if it involves a risk to health or the 
environment, or if placing it on the market is otherwise in conflict with the purpose of the Gene 
Technology Act, provi ded that their decision is otherwise in accordance with the EEA Agreement.157 
In 2017, prohibitions of certain genetically modified plants158 for use as feed and for industrial 
processing  were laid down by Royal Decree. At the same time, Norway did not object to the EU 
decisions permitting the import of five genetically modified carnation lines.159 
3.139.   The Animal Welfare  Act No. 97 of 2009 and accompanying regulations set out 
requirements for the raising, transport and slaughtering of animals.  
3.140.   In general, import requ irements are the same as in the European Union, and only products 
coming from the EU list of exporting countries, species, and establishments may be imported into 
Norway. Importers and/or first recipients of imports of food are required to register with th e NFSA, 
and must take responsibility for the imported food, including compliance with regulations and 
internal controls (Regulation No. 1187 of 1994160). All imports of food from outside the EEA must 
be notified to the NFSA at least 24 hours before arrival. Food of animal origin must be notified to 
the TRACES online system, and products subjected to veterinary check at a border inspection post 
are those specified in Annex I of Commission Decision (EC) No. 2007/275 concerning lists of 
                                                                                                                                                  
residue levels of pesticides and to assess the consumer exposure to pesticide residues in and on food of plant 
and animal origin.  
156 Commission Regulation (EC) No. 1881/2006 of 19 December 2006 setting maximum levels for 
certain contaminants in foodstuffs.  
157 See Section 1 0, sixth paragraph, of the Gene Technology Act and the adaptations set out in 
Annex  XX, item 25 d, to the EEA Agreement.  
158 Maize line 1507 and oilseed rape lines Ms8, Rf3 and Ms8xRf3.  
159 The carnation lines Moonlite, Moonvelvet, Moonaqua, Moonberry and SHD -27531 -4, all of which have 
a modified petal colour.  
160 Regulations on internal control to comply with the food law No. 1187 of 1994 (as amended).  WT/TPR/S/373 • Norway  
 
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  animals and products to b e subject  to controls at border inspection posts under Council Directives 
91/496/EEC and 97/78/EC.161 
3.141.   Regulation No. 1333 on plants and plant pests sets out the requirements for imports of 
plants and plant products, including packaging material. Requirements relating to import vary 
depending on the country of origin and the type of product. The Regulation also requires health 
certificates for imports of a number of products, including some fruits, vegetables, potatoes, wood, 
and flowers.  
3.142.   For 2012 -17, Norway made seven notifications to the WTO for SPS measures, including the 
draft regulations relating to ali en organisms and two addenda to this notification. During this 
period, no specific trade concerns were raised by other Members about measures taken by 
Norway. The national notification authority is the Ministry of Foreign Affairs, and the enquiry point 
is the Ministry of Agriculture and Food.162  
3.3.4   Competition policy  and price controls  
3.3.4.1   Competition  policy  
3.143.   The national authority responsible for policies relating to competition and for preparing 
national legislation on competition is the Ministry of Trade, Industry and Fisheries. The Norwegian 
Competition Authority  (NCA) is responsible for enforcing the law, including investigations and 
levying fines. In addition, the European Commission and the EFTA Surveillance Authority are 
responsible for enforcing some aspects of competition law. In some sectors, a sector -specific 
authority may have responsibilities relat ing to competition, such as the Norwegian 
Communications Authority for electronic communications.  
3.144.   In addition, the Authority for Intervention and Prosecution of Economic and Environmental 
Crime (ØKOKRIM) may initiate criminal procedures leading to fines an d/or criminal sanctions on 
individuals for breaches of competition law. Following an investigation, the NCA may request 
ØKOKRIM to undertake a criminal investigation through a notification identifying the individuals to 
be investigated. While there is no r equirement to show leniency for those that collaborate with the 
ØKOKRIM it is possible that collaboration may result in lower penalties compared to other 
individuals named in the investigation who did not collaborate or chose to collaborate later.  
3.145.   The rule s and regulations relating to competition in the EEA are set out in Articles 53 to 
60 of the EEA Agreement, in particular, Articles 53 and 54 (which mirror Articles 101 and 102 of 
the Treaty on the Functioning of the European Union). Protocols 21 to 25 of the EEA Agreement 
provide more detailed rules on competition, including incorporation of the relevant EU regulations 
and directives.  
3.146.   Responsibility for investigation and decision of cases is set out in Article 56 of the EEA 
Agreement, which states that ind ividual cases where "only trade between EFTA states is affected" 
are to be decided by the EFTA Surveillance Authority, in addition to some cases where the 
turnover in the EFTA States of the undertakings concerned is 33% or more. The European 
Commission is responsible for cases affecting trade between EFTA EEA States and the member 
States of the European Union. The Norwegian Competition Authority is responsible for cases where 
an undertaking has a dominant position in Norway, where collusion is between Norwe gian 
enterprises, and, for merger and acquisitions, as far as the Norwegian market could be affected.  
3.147.   Norway, along with Denmark, the Faroe Islands, Finland, Greenland, Iceland, and Sweden, 
is a party to the Agreement between Denmark, Iceland and Norway co ncerning cooperation in 
matters of competition which enables  the participants to exchange confidential information 
                                                
161 Commission Decision of 17 April 2007 c oncerning lists of animals and products to be subject to 
controls at border inspection posts under Council Directives 91/496/EEC and 97/78/EC; Council Directive 
91/496/EEC of 15 July 1991 laying down the principles governing the organization of veterinary checks on 
animals entering the Community from third countries and amending Directives 89/662/EEC, 90/425/EEC and 
90/675/EEC; and Council Directive 97/78/EC of 18 December 1997 laying down the principles governing the 
organization of veterinary checks on pr oducts entering the Community from third countries.  
162 WTO Sanitary and Phytosanitary Information Management System. Viewed at: 
http://spsims.wto.org/ . WT/TPR/S/373 • Norway  
 
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  regarding mergers, cartels, and abuse of dominant position.163 A revised Nordic Agreement has 
been adopted but, at end -2017, it had not yet ent ered into force. The NCA also participates in the 
European Competition Network with other EEA member States, the International Competition 
Network, and the OECD's Competition Committee.  
3.148.   Norway's main legislation on competition comprises: the EEA Competitio n Act No. 11 of  
2004 concerning implementation and enforcement of the competition rules of the EEA Agreement 
(including amendments in Act No. 100 of 2004) (last amended in 2013); and the Norwegian 
Competition Act No. 12 of 2004 on competition between under takings and control of 
concentrations (last amended in 2016). The 2016 amendments to the Norwegian Competition Act 
affected the rules for mergers and settlements in cartel cases, and introduced a new appeals 
system by establishing the Competition Appeals T ribunal. The Competition Act does not apply to 
terms and conditions of employment, and other exemptions apply to specific sectors, such as: the 
fixed-price system for books164; and the agriculture and fisheries sectors for agreements with the 
State.165 
Anti-trust 
3.149.   Articles 53 and 54 of the EEA Agreement prohibit abuse of dominant position and all forms 
of agreements and practices among operators that restrict competition. Article 3.3 of Protocol 21 
of the Agreement adopted Council Regulation (EC) No. 1/2003 on t he general implementation of 
the rules on competition, and the sector specific rules that apply to transport166 and air 
transport.167 
3.150.   Exemptions apply to certain types of agreements, particularly ones that lead to economic 
benefits provided: the restrictions a re needed to achieve these benefits; consumers benefit; and 
competition is not eliminated for a substantial part of the products concerned.168 In addition, 
through regulations, block exemptions may apply:  
 to vertical agreements between an association of unde rtakings and its members, or such 
an association and its suppliers, provided no member of the association has an annual 
turnover greater than €50 million and the supplier's share of the market for its sales is 
no more than 30%, or the retailer's share of t he market for its purchases is no more 
than 30%169;  
 to research and development agreements that include provisions for the transfer or 
licensing of intellectual property rights, or to an entity created by the parties to the 
agreement to carry out joint rese arch and development170; 
 to vertical agreements relating to the parties' purchase, sale or resale of spare parts for 
motor vehicles, or repair and maintenance services for motor vehicles .171 
3.151.   These exemptions do not apply  to agreements that include "hardcore" r estrictions, that is: 
price fixing; territorial restrictions; and division of markets or sources of supply that are not 
subject to exemption.  
                                                
163 NCA online information. Viewed at: http://www.konkurransetilsynet.no/en/om -oss/nordic -co-
operation2/ . 
164 Regulation concerning exceptions from the Competition Act Section 10 for cooperation on the sale of 
books No. 1716 of 2014.  
165 Regulation for exceptions for cooperation, etc. in agriculture and fisheries No. 651 of 2004.  
166 Regulation (EEC) No. 2988/74 of the Council of 26 November 1974 concerning limitation periods in 
proceedings and the enforcement of sanctions under the rules o f the European Economic Community relating 
to transport and competition.  
167 Council Regulation (EC) No. 411/2004 of 26 February 2004 repealing Regulation (EEC) No. 3975/87 
and amending Regulations (EEC) No. 3976/87 and (EC) No. 1/2003, in connection with ai r transport between 
the Community and third countries.  
168 EEA Agreement, Article 53.3.  
169 Regulation on groups of vertical agreements No. 989 of 2010.  
170 Regulation on research and development agreements No. 342 of 2012.  
171 Regulation on groups of vertical agr eements and concerted conduct in the motor vehicle sector 
No. 1214 of 2010.  WT/TPR/S/373 • Norway  
 
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  Abuse of dominance  
3.152.   As in the EEA Agreement, there is no definition of abuse of dominance in the Norwegian 
Competit ion Act, and dominance, per se , is not illegal. An assessment of whether an enterprise is 
dominant in its market is identical to the assessment under EU and EEA law, and several factors 
are taken into account, including market share, the ease with which ot her companies can enter the 
market; the existence of countervailing buyer power; the overall size and strength of the company 
and its resources; and the extent to which it is vertically integrated. A dominant enterprise is 
required to show that it does not  use its dominant position to distort competition through its 
practices, such as: price fixing; production restrictions; application of different terms to trading 
partners; and making contracts depend on the delivery of non -related benefits.  
3.153.   The Electroni c Communications Act No. 3 of 2003 includes provisions relating to those 
companies with significant market power. Under the Act, the Norwegian Postal and 
Telecommunications Authority may impose obligations on a provider with significant market 
power, such as: obligations relating to access and interconnection; and obligations relating to 
access and non -discrimination. Other sector -specific rules apply to energy (Energy Act No. 50 of 
1990), and postal services (Postal Act No. 7391 of 2015).  
Investigations an d penalties  
3.154.   An investigation by the NCA may be initiated on its own authority, on the basis of a 
complaint, or following an application for leniency. Following the investigation, which may include 
surprise inspections (with court authorization) and/or form al requests for information, the NCA 
may make an initial decision. If the initial decision is that there has been an infringement of 
competition law, the parties are informed and allowed time to comment. Then, following a 
reappraisal of the results of the investigation and an assessment of the comments, the NCA may 
make a decision which may include fines. Under the 2016 amendment to the Competition Act, the 
NCA may negotiate a settlement  decision with the parties and end the case subject to the parties' 
commitment to meet specific requirements that would bring them into compliance with the law.  
3.155.   Under the 2016 amendments to the Competition Act, appeals to NCA decisions must, in 
the first instance, be made to the Competition Appeals Tribunal, which was establi shed on 
1 January  2017. Appeals of decisions by the Competition Appeals Tribunal are handled by the 
regular courts.  
3.156.   Under the Competition Act and the Regulation on the calculation of and leniency from 
administrative fines No. 1465 of 2013, the NCA may requ ire that the undertakings end any activity 
that is in breach of the law and impose an administrative fine of up to 10% of turnover in the 
previous year plus an additional 1% of turnover if the investigation was obstructed. Higher fines 
may be imposed for p articularly serious violations of the Competition Act, such as horizontal price 
fixing agreements, market sharing, and limitations of production, or for repeated violations. A 
company may qualify for immunity from fines if, on its own initiative, it provid es information on 
the infringement and cooperates with the investigation. The fines may also be reduced for 
companies that provide evidence to the NCA that help establish an infringement of the Competition 
Act and cooperate with the investigation.  
3.157.   Under th e Competition Act and NCA guidelines of June 2016 on criminal sanctions for 
individuals in competition law cases, individuals may be sent enced to up to a maximum of 
six years in prison.  
Mergers and acquisitions  
3.158.   The Competition Act requires that concentrations involving companies with total annual 
turnover in Norway of NKr 1 billion or more, or with one party to the merger with turnover in 
Norway of NKr 100 million or more, be notified to the Competition Authority  by a standardized 
notification. In some markets with a high degree of concentration, such as power production and 
groceries, all acquisitions must be notified to the NCA. Detailed rules on merger control are in 
Regulation No. 1466 of 2013, which was last amended in 2016.  WT/TPR/S/373 • Norway  
 
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  3.159.   Following notification, the NCA will start a Phase I investigation, at the end of which it will: 
approve the merger; approve with remedies; or start a more detailed Phase II investigation. At the 
end of the Phase II investigation, the merg er will be: approved; approved with remedies; or 
prohibited. As part of the investigation, the NCA may issue a statement of objections to the parties 
in the merger, which  may then respond with comments which are taken into account by the NCA 
in the final d ecision. If there is no decision at the end of the Phase I and II investigations then an 
informal notice is given to the parties and the merger or acquisition may proceed.  
3.160.   According to the 2016 amendments to the legislation, which are designed to improve 
harmonization with EU law, the NCA now prohibits concentrations that will lead to a significant 
impediment to effective competition (SIEC), in particular as a result of strengthening a dominant 
position. The SIEC test has now replaced the significant lessen ing of competition (SLC) test used 
previously.  
Enforcement  
3.161.   In addition to investigations into specific mergers and cases of anti -competitive activities, 
the NCA may also initiate market studies, such as the 2015 studies of the taxi market, the market 
for residential property development, and the mortgage market, and the 2016 study (with the 
other Nordic competition authorities) of the waste disposal market.172  
3.162.   The number of merger notifications declined significantly in 2014 compared to 2013, due 
to an incre ase in the thresholds for notification and, in most cases, they were approved with only 
three prohibitions in 2016 and five the previous year. Similarly, there were relatively few cases 
concerning infringements of the prohibitions on anti -competitive agree ments and the abuse of 
dominant position ( Table 3.20 ). 
Table 3.20 Competition cases at the Norwegian Competition Authority  
 2011  2012  2013  2014  2015  2016  
Cases received (number)        
Notifications of mergers and acquisitions  461 411 391 89 96 97 
Complaints received of anti -competitive activity  81 75 45 27 41 33 
Hearings  203 180 193 124 130 146 
International issues  97 95 82 79 56 57 
Leniency applications  3 6 2 3 3 .. 
Completed cases (number)        
Mergers and acquisitions  2 4 2 3 5 3 
Anti-competitive cases  2 0 1 0 2 1 
Consultations statements  19 12 16 13 10 10 
Infringement fee  4 4 3 5 2 0 
Infringement penalties (NKr thousand)        
Anti-competitive cases  4,400  0 360,000  0 18,850  6,500  
Breach of execution  950 1,250  800 26,300  950 0 
.. Not available.  
Source:  Norwegian Competition Authority Annual Reports for 2016 and 2015.  
3.3.4.2   Price controls  
3.163.   There have been no substantive changes to the legislation relating to price controls since 
2012.173 The Act on Price Measures No. 66 of 1993 allows price controls when necessary "to 
promote socially justifiable price developments" and prohibits "unfair" prices. However, few 
products or services are actually subject to controls.  
3.164.   Under the Act on the Sale  of Alcoholic Beverages No. 27 of 1989, alcoholic beverages over 
4.7% by volume may only be sold in Vinmonopolet outlets and the sales price is the purchase 
price plus taxes and profit, where the profit is NKr 8.90 per litre plus 22% of the purchase price.  
Beverages with an alcohol content of 4.7% or less may be sold in other licensed premises.  
                                                
172 NCA online information. Viewed at: http://www.konkurransetilsynet.no/nb -NO/publikasjoner/ nye-
publikasjoner/ . 
173 WTO document WT/TPR/S/269/Rev.1, 13 November 2012, Section III(4)(x).  WT/TPR/S/373 • Norway  
 
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  3.165.   Under Regulation No. 1307 of 2010 of the NCA, taxi fares are subject to maximum prices 
and fare calculation formulas, although this Regulation does not apply to the major towns and 
cities.  
3.166.   Prices of some non -generic prescription pharmaceuticals are controlled under the Medicinal 
Products Act No. 132 of 1992 and Regulation No. 1839 of 2009 through maximum wholesale prices 
plus a margin for the pharmacy. All registered prescription -only medicines for humans must have 
maximum prices plus pharmacy mark -ups set by the Norwegian Medicines Agency before they can 
be marketed in Norway. The maximum pharmacy purchase price is set as the average of the 
three  lowest market prices of the product in a selection of European countries. The price 
comparison group includes Austria, Belgium, Denmark, Finland, Germany, Ireland, the 
Netherlands, Sweden, and the United Kingdom. The list of products subject to maximum prices, 
and their wholes ale and pharmacy prices are available from the Norwegian Medicines Agency.174 
3.167.   Transfers of agricultural real estate are regulated by the Concession Act No. 98 of 2003. 
Under the Act, the price paid for agricultural property should not exceed the production v alue of 
the property plus its value as a residence. A concession from the local authority is required for 
transfer of ownership, and the application must include information on how the farm is to be 
managed.  
3.3.5   State trading, state -owned enterprises , and priv atization  
3.168.   The State took the lead in the industrial development of Norway after World War II, as 
private capital was scarce and foreign investment was limited by restrictions on the international 
movement of capital. The State's interests expanded further with the development of the offshore 
petroleum sector in the 1970s, and a domestic banking crisis brought the country's major banks 
into public ownership in the early 1990s. Subsequent bank re -privatizations and other asset sales 
reduced the level of state  involvement. Nevertheless, state ownership remains substantial in 
Norway. The 281,000 employees that worked in enterprises owned by the State (entirely or in 
part) at the end of 2016 corresponded to approximately 11% of the working population.  
3.169.   At the end of 2016, state ownership comprised 74 wholly owned or partially owned 
enterprises. Based on the market valuation of stocks listed on the Oslo Stock Exchange, about 
35% of the listed capital is in state hands. In addition, the State is a substantial owner ( about 
30%) of unlisted enterprises.175 According to the Ministry of Trade, Industry and Fisheries, the 
value of the Norwegian State's investments in commercial businesses totalled NKr 715 billion at 
the end of 2016.176 
3.170.   Depending on the purpose and background f or the State's  involvement, the management 
of the State's interests is allocated among 12 different ministries, with the Ministry of Trade, 
Industry and Fisheries taking on a leading role. The Ministry promotes transparency through the 
publication of an annual state own ership report summarizing the commercial results and 
operational highlights for each individual enterprise and providing information about the ministries' 
management of the State's ownership. The Ministry also produces more extensive reports (white 
papers)  to Parliament approximately every four years, outlining the Government's policy and 
strategies in relation to state ownership. The last such report was presented in 2014.177 
3.171.   Since 2006, the state -owned enterprises have been classified in four different cate gories, 
reflecting the state's justification and objectives for direct state ownership (Table 3.21).178 Most 
                                                
174 Norwegian Medicines Agency online information. Viewed at: https://legemiddelverket .no/refusjon -
og-pris/pris -pa-legemidler . 
175 The estimates, provided in White Paper No. 27 (2013 -2014), Et mangfoldig og verdiskapende 
eierskap , are based on Øyvind Bøhren (2013), Eierne, styret og ledelsen Corporate governance i Norge . 
Estimates for unliste d companies are compiled from the book value of equity, whereas actual market 
quotations have been used to determine the value of listed enterprises.  
176 Buoyed by a rising stock market, the market value of the State's ownership in listed companies rose 
from NKr 504 billion in 2010 to NKr 596 billion at the end of 2016. In addition, the State has been a major 
recipient of dividends during this period. Dividends received during 2016 totalled NKr 33 billion.  
177 Meld.St. 27 (2013 -2014) Report to the Storting (whi te paper), Diverse and value -creating ownership , 
20 June 2014. Viewed at: https://www.regjeringen.no/contentassets/899ac257df 2648d788942b78c6d59787/  
en-gb/pdfs/stm201320140027000engpdfs.pdf . 
178 Two entities, the Government Pension Fund Norway (Folketrygdfondet) and a property 
(Rosenkrantzgate 10AS), are not assigned to any particular category.  WT/TPR/S/373 • Norway  
 
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  enterprises in categories 1 to 3 operate in markets in competition with private suppliers of goods 
and services. The State's goal for these companies  is to achieve the highest possible return on the 
invested capital. The State's ownership is accordingly of a commercial character, and return 
targets are set. For enterprises in category 2, an additional consideration is the retention of their 
headquarter s in Norway, which requires at least a blocking minority (one third) of the stocks 
issued. Enterprises in category 3 have additional considerations (societal justifications) other than 
the maintenance of company headquarters in Norway. In category 4, where  the State's 
involvement is of a non -commercial nature (typically R&D and the management of infrastructure), 
the prime consideration is that the underlying sectoral objectives are reached efficiently.  
Table 3.21 State -owned enterprises, December 2016  
Name of company  Type of company  Sector  State 
share 
(%) Ministry 
responsible  
Companies with commercial objectives  
Ambita AS  State owned limited 
company  Centralized property 
registry  100 Trade, Industry 
and Fisheries  
Baneservice AS  State owned limited 
company  Railway construction and 
maintenance  100 Trade, Industry 
and Fisheries  
Entra Eiendom AS  Public limited 
company with state 
ownership  Real estate  33.4 Trade, Industry 
and Fisheries  
Flytoget AS  State owned limited 
company  Airport shuttle (rail), 
Drammen – Oslo – Oslo 
Airport  100 Trade, Industry 
and Fisheries  
Mesta AS  State owned limited 
company  Road operation and 
maintenance  100 Trade, Industry 
and Fisheries  
SAS AB  Limited company 
(Swedish) with state 
ownership  Airline  11.45  Trade, Industry 
and Fisheries  
Veterinærmedisinsk 
Oppdragssenter AS  Limited company 
with state ownership  Distribution of veterinary 
medicines; vaccine 
research  34 Trade, Industry 
and Fisheries  
Companies with commercial object ives and national anchoring of their head office functions  
Aerospace Industrial 
Maintenance Norway AS  State owned limited 
company  Maintenance of aircraft 
engines, engineering  100 Defence  
Aker Kværner Holding 
AS Limited company 
with state ownership  Offshore engineering 
(holding company)  30 Trade, Industry 
and Fisheries  
DNB ASA  Public limited 
company with state 
ownership  Banking, insurance, 
financial services  34 Trade, Industry 
and Fisheries  
Kongsberg Gruppen ASA  Public limited 
company with state 
ownership  High technology systems 
for defence, space, oil and 
gas, and merchant fleets  50.001  Trade, Industry 
and Fisheries  
Nammo AS  Limited company 
with state ownership  Ammunitions manufacture  50 Trade, Industry 
and Fisheries  
Norsk Hydro ASA  Public limi ted 
company with state 
ownership  Production, distribution, 
and sale of aluminium  34.26  Trade, Industry 
and Fisheries  
Statoil ASA  Public limited 
company with state 
ownership  Oil and gas  67 Petroleum and 
Energy  
Telenor ASA  Public limited 
company with state  
ownership  Telecommunications  53.97  Trade, Industry 
and Fisheries  
Yara International ASA  Public limited 
company with state 
ownership  Production, distribution, 
and sale of fertilizers  36.21  Trade, Industry 
and Fisheries  
Companies with commercial objectives and other specifically defined objectives  
Argentum 
Fondsinvesteringer AS  State owned limited 
company  Private equity  100 Trade, Industry 
and Fisheries  
Eksportfinans ASA  Limited company 
with state ownership  Financial s ervices for 
exports (winding up)  15 Trade, Industry 
and Fisheries  
Electronic Chart Centre 
AS State owned limited 
company  Electronic sea charts  100 Trade, Industry 
and Fisheries  
GIEK Kredittforsikring 
AS State owned limited 
company  Export credit insurance  100 Trade, Industry 
and Fisheries  WT/TPR/S/373 • Norway  
 
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  Name of company  Type of company  Sector  State 
share 
(%) Ministry 
responsible  
Investinor AS  State owned limited 
company  Venture capital  100 Trade, Industry 
and Fisheries  
Kommunalbanken AS  State owned limited 
company  Lending to local 
authorities  100 Local Government 
and Modernization  
NSB AS  State  owned limited 
company  Transportation 
(passengers and goods)  100 Transport and 
Communications  
Posten Norge AS  State owned limited 
company  Postal services and 
logistics  100 Trade, Industry 
and Fisheries  
Statkraft SF  Statutory enterprise  Production, distribution 
and sale of energy from 
hydropower, gas, and 
wind 100 Trade, Industry 
and Fisheries  
Togvedlikehold AS 
(Mantena AS)  State owned limited 
company  Maintenance of rolling 
stock (rail)  100 Transport and 
Communications  
Companies with sectoral policy objectives  
Andøya Space Center AS  State owned limited 
company  Space research, space 
technology  90 Trade, Industry 
and Fisheries  
Avinor AS  State owned limited 
company  Owns, manages, and 
develops the national 
network of airports for 
civil aviation. National air 
navigation service (civil 
and military)  100 Transport and 
Communication  
Bane NOR SF  Statutory enterprise  Rail infrastructure services  100 Transport and 
Communication  
Bjørnøen AS  State owned limited 
company  Administering assets on 
Bear Island  100 Climate and 
Environment  
Carte Blanche AS  Limited company 
with state ownership  Dance emsemble  70 Culture  
AS Den Nationale Scene  Limited company 
with state ownership  Theatre  66.67  Culture  
Den Norske Opera & 
Ballett AS  State owned limited 
company  Opera and ballet  100 Culture  
Export Credit Norway 
(Eksportkreditt Norge 
AS) State owned limited 
company  Manage the State's export 
credit scheme  100 Trade, Industry 
and Fisheries  
Enova SF  Statutory enterprise  Promote environmentally 
friendly technologies  100 Petroleum and 
Energy  
Gassco AS  State owned limited 
company  Transport of natural gas  100 Petroleum and 
Energy  
Gassnova SF  Statutory enterprise  Carbon capture and 
storage  100 Petroleum and 
Energy  
Graminor AS  Limited company 
with state ownership  Development of new and 
improved plant varieties  28.2 Agriculture and 
Food 
Innovation Norway  Special -legislation 
company  Business development. 
Administers business -
oriented policy 
instruments  51 Trade, Industry 
and Fisheries  
Kings Bay AS  State owned limi ted 
company  Infrastructure 
maintenance and 
development (Svalbard)  100 Climate and 
Environment  
Kimen 
Såvarelaboratoriet AS  Limited company 
with state ownership  Seeds laboratory  51 Agriculture and 
Food 
Nationaltheateret  State owned limited 
company  Theatre  100 Culture  
Nofima AS  Limited company 
with state ownership  Fisheries research  56.8 Trade, Industry 
and Fisheries  
Nordisk Institutt for 
Odontologiske Materialer 
AS Limited company 
with state ownership  Research on dental 
biomaterials and ensuring 
that standards are met  49 Health and Care 
Services  
Norfund  Special -legislation 
company  Investment in developing 
countries  100 Foreign Affairs  
Norwegian Seafood 
Council (Norges 
sjømatråd AS)  State owned limited 
company  Export promotion (fish)  100 Trade, Industry 
and Fisheries  
Norsk Helsenett SF  Statutory enterprise  IT infrastructure for health 
care services  100 Health and Care 
Services  WT/TPR/S/373 • Norway  
 
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  Name of company  Type of company  Sector  State 
share 
(%) Ministry 
responsible  
Norsk rikskringkasting 
AS State owned limited 
company  Public broadcasting  100 Culture  
Norsk senter for 
forskningsdata AS State owned limited 
company  IT infrastructure for 
research  100 Education and 
Research  
Norsk Tipping AS  Special -legislation 
company  Lottery  100 Culture  
Nye Veier AS  State owned limited 
company  Planning, construction, 
operation, and 
maintenance of highw ays 100 Transport and 
Communications  
Reiseplan og billett AS 
(Entur AS)  State owned limited 
company  Travel planning public 
transport, sales and 
ticketing (railway 
transport)  100 Transport and 
Communications  
Petoro AS  State owned limited 
company  Management of State's 
direct financial interest in 
oil and gas  100 Petroleum and 
Energy  
Rogaland Teater AS  Limited company 
with state ownership  Theatre  66.67  Culture  
Simula Research 
Laboratory AS  State owned limited 
company  Basic research within 
software  engineering and 
communications 
technology  100 Education and 
Research  
SIVA SF  Statutory enterprise  Innovation and regional 
industrial development  100 Trade, Industry 
and Fisheries  
Space Norway AS  State owned limited 
company  Contribute to operation 
and development of space 
related infrastructure  100 Trade, Industry 
and Fisheries  
Statnett SF  Statutory enterprise  Electricity transmission 
and systems operation  100 Petroleum and 
Energy  
Statskog SF  Statutory enterprise  Administration of public 
lands, including forests  100 Agriculture and 
Food 
Staur gård AS  State owned limited 
company  Farming and 
representational facility  100 Agriculture and 
Food 
Store Norske 
Spitsbergen Kulkompani 
AS State owned limited 
company  Coal mining (Svalbard)  100 Trade, Industry 
and Fisheries  
Talent Norge AS  Limited company 
with state ownership  Promote artistic talent  33.33  Culture  
Togmateriell AS (Norske 
tog AS)  State owned limited 
company  Own and manage rolling 
stock for passenger 
railway  100 Transport and 
Communicati ons 
Trøndelag Teater AS  Limited company 
with state ownership  Theatre  66.67  Culture  
UNINETT AS  State owned limited 
company  Operator for the national 
research and education 
network  100 Education and 
Research  
Universitetssenteret på 
Svalbard AS  State owned  limited 
company  Higher education 
institution at 
Longyearbyen  100 Education and 
Research  
AS Vinmonopolet  Special -legislation 
company  Retail distribution of 
alcohol  100 Health and Care 
Services  
Helse Midt -Norge RHF  Special -legislation 
company  Public hospitals and clinics  100 Health and Care 
Services  
Helse Nord RHF  Special -legislation 
company  Public hospitals and clinics  100 Health and Care 
Services  
Helse Sør -Øst RHF  Special -legislation 
company  Public hospitals and clinics  100 Health and Care 
Services  
Helse Vest RHF  Special -legislation 
company  Public hospitals and clinics  100 Health and Care 
Services  
Source:  Ministry of Trade, Industry and Fisheries, The State Ownership Report 2016, and information 
provided by the authorities.  
3.172.   The Government in charge from 2005 to 2013 considered major state involvement in 
Norway's industrial development both important and justifiable. There was, accordingly, a marked 
slowdown of privatizations during this period. Nonetheless, ownership stakes were reduced in WT/TPR/S/373 • Norway  
 
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  Statoil (2007) and Norsk Hydro (2010), the gradual privatization of Cermaq (fish feed and 
farming) was continued, and the sale of Secora (harbour construction and maintenance) was 
completed in 2012. Although the Government in office since 2013 has not chan ged the broad lines 
of state ownership policy, it signalled early on a willingness to reduce the degree of direct state 
ownership with time. It also expressed a heightened sensitivity to potential conflicts of interest 
stemming from the State's diverse rol es, risks inherent in the concentration of powers, and 
drawbacks related to the Norwegian State's limited expertise as an industrial owner. The 
Government found no compelling reasons to maintain ownership in category 1 enterprises in the 
long run, and woul d seek authorization from Parliament to sell the stakes where such 
authorizations had not already been granted. Parliament has granted authorizations to divest all 
category 1 enterprises (except Flytoget), and to reduce the stake in Telenor to 34%. The 
privatization of Cermaq has been completed (in 2014), and the sale of Entra (commercial 
property) commenced with its public listing in October 2014. The State's ownership in SAS was 
reduced during 2016 and 2017 to 9.88%. Other divestments may follow, but only  under conditions 
deemed commercially opportune. The policy towards enterprises in categories 2 to 4 is essentially 
unchanged, although commercial considerations could spark case -by-case changes in ownership in 
category 3, and alternatives to ownership in category 4 enterprises may be examined in the 
pursuit of sectoral objectives.  
3.173.   The present Government has been reluctant to extend state ownership through 
acquisitions. It has not requested Parliament to grant authorizations to attain or increase stakes in 
existing companies.179 However, new companies have been created, notably to speed up the 
construction of motorways and major highways (Nye Veier AS) and as part of ongoing reforms in 
the railway sector.  
3.174.   Principles to be followed in the exercise of governmen t ownership were formalized in 2002 
and, except for minor adjustments in 2014, the principles have remained unchanged since then.180 
The 10 principles of corporate governance include equal treatment of all shareholders, 
transparency in the State's ownership,  and systematic safeguard of corporate social responsibility. 
The State sets performance targets for each company, and exercises its ownership through a 
company's general meeting. The State does not designate government officials to serve on 
company boards , but elects board members on the basis of competence, capacity, and diversity. 
Each company board elaborates objectives and strategies for the company and its own work plan, 
it ensures an appropriate capital structure, and oversees the company's managemen t on behalf of 
the shareholders. Management compensation and incentive schemes should be reasonable. Where 
the State has instructed a company to render certain services, the financial compensation to cover 
the related costs may only be granted within the c onstraints of EEA regulations pertaining to state 
aid, including the rules on services of general economic interest.  
3.175.   Since 2004, Norway has been of the opinion that it does not maintain any state trading 
enterprises within the meaning of Article XVII:4(a) of the GATT 1994 and the working definition 
set forth in the Understanding on the Interpretation of Article XVII.181 This view is reflected in 
Norway's notifications to the WTO.182 
3.3.6   Government procurement  
3.176.   Total public purchases in Norway in 2016 were over 15% of GDP, at NKr 501 billion, of 
which NKr 26 billion was for defence and related services. Excluding defence, central government 
purchases are roughly equivalent to local government purchases. In additi on, general and local 
government enterprises spent NKr 75 billion on goods and services in 2016 (Table 3.22 ). 
                                                
179 In 2010, Norsk Hydro acquired assets from Vale S.A., with shares in Norsk Hydro issued as payment. 
The State's ownership in Norsk Hydro fell from 43.8% to 34.5% as a result of this transaction. Parliament gave 
authorization to increase state ownership in Norsk Hydro to 39.9%. However, this authorization was never 
used, and it was cancelled in 2015 as Vale S.A. sold its shares to Norsk Hydro.  
180 The principles are reproduced in Box 8.1 of the 2013 -2014 white paper.  
181 The state -owned wine monopoly was reorga nized with effect from 1 January 1996 to conform to EEA 
rules. The domestic retail monopoly for wines and spirits was maintained, while all production and trading 
activities were transferred to a new company (Arcus Produkter AS). Arcus was privatized in 20 04. Arcus ASA 
has been listed on the Oslo Stock Exchange since 1 December 2016.  
182 WTO documents G/STR/N/16/NOR, 21 June 2016, and G/STR/N/15/NOR, 23 June 2014.  WT/TPR/S/373 • Norway  
 
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  Table 3.22 Public Procurement, 2011 -16 
(NKR billion)  
 2011  2012  2013  2014  2015  2016  
GDP 2,796  2,968  3,076  3,147  3,118  3,117  
Total public purchases  385 398 438 462 478 501 
of which        
 General government  
 (less defence)  144 153 169 186 195 206 
 Local government  147 151 162 172 181 193 
 General government 
enterprises  69 50 85 81 77 75 
 Local government enterprises  6 4 5 5 4 6 
Source:  Statistics Norway, STATBANK online database: Public Purchasing (Table 10807). Viewed at: 
http://www.ssb.no/en/statistikkbanken . 
3.177.   Several changes to public procurement legislation were introduced in 2016, with effect 
from 1  January 2017, as Norway aligned its legislation with EU rules183 and the Decision of the EEA 
Agreement on Public Procurement184, including the adoption of the EEA thresholds ( Table 3.23 ). 
The relevant Norwegian legislation is:  
 Public Procurement Act No. 73 of 2016;  
 Regulation on Public Procurement No. 974 of 2016;  
 Regulation on Public Procurement in the Utilities Sector No. 975 of 2016; and  
 Regulation on Concession Contracts No. 976 of 2 016. 
3.178.   In addition, other regulations relating to public procurement were introduced in 2016 
including: Regulation on obligation to require the use of apprentices in Public Contracts No. 1708 
of 2016; and Regulation on determination of fines pursuant to the Public Procurement Act 
No. 1842 of 2016. Other regulations related to public procurement such as defence -related 
procurement, and wages and working conditions remain in force.185 
3.179.   While public procurement is decentralized, the Public Procurement Act applies t o all public 
authorities, to public undertakings performing utilities activities, and to other undertakings 
performing utilities  activities on the basis of a special or exclusive right. In addition, the Public 
Procurement Act applies to subsidized works co ntracts and services contracts connected to works 
contracts which are not awarded by the procuring entity itself but where the procuring entity 
provides a direct grant of more than 50%.  
3.180.   The legislation on public procurement covers all procurement above an initial threshold of 
NKr 100,000 (all thresholds exclude VAT):  
 for procurement between NKr 100,000 and the national thresholds, there are no detailed 
procedural rules but the procuring entity must follow the general principles set out in the 
Public Procure ment Act of competition, equal treatment, non -discrimination, 
transparency and proportionality (Article 4);  
 for procurement above the national thresholds but below the EEA thresholds, the 
authorized procurement procedures are open and selective tendering – where at least 
three are invited to submit bids; and  
                                                
183 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on pub lic 
procurement and repealing Directive 2004/18/EC. Directive 2014/23/EU of the European Parliament and of the 
Council of 26 February 2014 on the award of concession contracts. Directive 2014/25/EU of the European 
Parliament and of the Council of 26 Februa ry 2014 on procurement by entities operating in the water, energy, 
transport and postal services sectors and repealing Directive 2004/17/EC.  
184 Decision of the EEA Joint Committee No. 97/2016 of 29 April 2016 amending Annex XVA 
(Procurement) to the EEA Agre ement.  
185 Regulation on Complaint Board for Public Procurement No. 1288 of 2002; Defence and Security 
Procurement No. 1185 of 2013; and Regulation on Wage and Working Conditions in Public Contracts No. 112 of 
2008.  WT/TPR/S/373 • Norway  
 
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   for contracts above the EEA thresholds ( Table 3.23 ), the legislation mirrors the relevant 
EU directives on public procurement, and the authorized procedures are open tender, 
restricted tender, restrict ed followed by negotiations, competitive dialogue, and 
innovation partnership ( Table 3.24 ).186 
Table 3.23 Public procurement thresholds in 2017  
(NKr, excluding VAT)  
Thresholds  Type of procurement  Reference  
National threshold values  
Regulation on Public Procurement No. 974 of 2016  
100,000  All purchases covered by the regulations  A. 1.1 (and Public 
Procurement Act A.2)  
1,100,000  Procurement of goods, services and construction work  A.5.1(2)a  
1,100,000  Special Services  A.5.1(2)b  
EEA thresholds  
Regulation on Public Procurement No. 974 of 2016  
1,100,000  Government authorities' goods and services procurement and 
planning and design competitions  A. 5.3(1)a  
1,750,000  Other contractors' goods and services purchases and planning 
and design competitions  A. 5.3(1)b  
44,000,000  Construction Contracts  A. 5.3(1)c  
6,300,000  Contracts on health and social services  
Special Services Contracts  A. 5.3(2)  
650,000  Subcontracts (goods and services) that may be subject to EEA 
announcement  A. 5.4(8)  
8,400,000  Subcontracts (building and construction) that may be subject to 
EEA announcement  A. 5.4(8)  
1,100,000  Government authorities' supply contracts in the field of defence 
and security  
(Goods specified in the WTO Agreement on Government 
Procurement Appendix I, Appendix 4, Item 2)  A. 5.3 (3)  
1,750,000  Government authorities' contracts for defence and security 
(other goods)  A. 5.3 (3)  
Regulation on Public Procurement in the Utilities Sector No. 975 of 2016  
100,000  All purchases covered by the regulations  A. 1.1 (and Public 
Procurement Act A.2)  
3,500,000  Goods and service contracts and planning and design contests  A. 5.2(1)a  
44,000,000  Construction contracts  A. 5.2(1)b  
8,400,000  Contracts on health and social services  
Special Services Contracts  A. 5.2 (2)  
650,000  Subcontracts (goods and services) that may be subject to EEA 
announcement  A. 5.3 (8)  
8,400,000  Subcontracts (building and construction) that may be subject to 
EEA announcement  A. 5.3 (8)  
Regulation on Concession Contracts No. 976 of 2016  
100,000  All purchases covered by the regulations.  A. 1.1 (and Public 
Procurement Act A.2)  
44,000,000  Concession contracts (construction work and services, except 
special services and health and social services)  A 5.1(2)  
44,000,000  Concession contracts for special services and health and social 
services  A.5.1 (3)  
Source:  Public Procurement Act No. 73 of 2016; Regulation on Public Procurement No. 974 of 2016; 
Regulation on Public Procurement in the Utilities Sector  No. 975 of 2016; and Regulation on 
Concession Contracts No. 976 of 2016.  
3.181.   All procurement tenders that fall under the public procurement regulation with an 
estimated value of NKr 1,100,000 or more must be published on the Norwegian database for 
public proc urement (DOFFIN). For procurement covered by the utilities regulation, the threshold 
for publication is NKr 3,500,000, and for concession contracts the threshold is NKr 44,000,000. If 
a tender has an estimated value above the EEA thresholds, DOFFIN will fo rward it to the Tenders 
Electronic Daily (TED) supplement to the Official Journal of the European Union.  
                                                
186 WTO document WT/TPR/S/357/Rev.1, 13 Octo ber 2017, Section 3.3.7.1.  WT/TPR/S/373 • Norway  
 
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  Table 3.24 Public procurement procedures according to Regulation on Public 
Procurement No. 974 of 2016  
NKr 100,000 to national 
thresholds  National to EEA thresholds  Above EEA thresholds  
Publication  
 DOFFIN  DOFFIN and forwarded to TED  
Selection procedure  
No detailed procedural 
rules. The procuring entity 
must follow the general 
principles set out in the 
Public Procurement Act.  Open tender  
Limited tender  
Possibility of dialogue  Open tender  
Restricted tender  
Restricted followed by negotiations  
Competitive dialogue  
Innovation partnership  
Estimation of value  
Framework agreements and dynamic purchasing agreements   
Value of all contracts under an agreement  
Innovation partnerships  
Value of research and development plus value of goods, services, and works acquitted at termination of partnership  
Works  
Value of construction work plus goods and services necess ary for the work  
Lots 
Total value of all lots, if the total value of all lots is greater than the EEA thresholds, then the EEA procurement rules 
apply  
Regular/renewable goods and service contracts  
Actual value of similar contracts from the past 12 months/f inancial year or the estimated value of contracts to be 
awarded within 12 months of first delivery  
Leasing/repayment contracts  
Fixed term up to 12 months – actual value;  
Fixed term more than 12 months – total value plus residual value; and  
Indefinite contracts – monthly value multiplied by 48  
Certain service contracts  
Banking and insurance services and other financial services, and design contracts shall  include  insurance premiums 
and banking/engineering fees, commissions, interest, and other forms of  payment  
Service contracts with no fixed total price  
Duration 48 months or less – total value; and  
Duration more than 48 months monthly value multiplied by 48  
Planning and design contests:   
To include the payments or premiums for contestants  
Selection cri teria  
No specific rules  Selection criteria must be set out 
in the procurement documents. 
Regulation states that: "The award 
criteria … may, for example, be 
price, quality, life cycle costs, 
environment, social considerations 
and innovation."  Lowest price  
Lowest life -cycle cost  
Best relationship price or cost to quality  
Minimum deadlines  
No specific rules  No specific deadlines but the 
contractor must take into account 
the complexity of the contract and 
the time required for the suppliers 
to prepare requests and offers.  Days from publication on DOFFIN/TED  
Open tender:  30 (15 urgent)  
Restricted tender:   
 Request to participate:  30 (15 urgent)  
 Invitation for tenders:  25 (10 urgent/  
     with guiding  
     announcement)  
Negotiated, prior notice:  25 (10 with 
     guiding  
     announcement)  
Competitive dialogue:  30 
Innovation partnership:  30 
Source:  Public Procurement Act No. 73 of 2016; Regulation on Public Procurement No. 974 of 2016 . 
3.182.   Complaints concerning public procurement may be brought to the Norwegian Complaints 
Board for Public Procurement (Klagenemnda for offentlige anskaffelser – KOFA), the courts, or, in 
some  cases, to the EFTA Surveillance Authority. KOFA is an independent bod y established by the 
Regulation on Complaint Board for Public Procurement No. 1288 of 2002 to review complaints 
regarding infringements of public procurement legislation. Complaints must be submitted in writing 
in Norwegian within six months of conclusion of the contract (two years for direct awards) and 
accompanied by a filing fee of NKr 8,000 (NKr  1,000 for direct awards). Except for illegal direct 
awards where the public authority has shown gross negligence, KOFA cannot order the suspension 
of the procur ement procedure or make legally binding decisions. For illegal direct awards, KOFA WT/TPR/S/373 • Norway  
 
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  can make legally binding decisions and impose penalties of up to 15% of the contract value. In 
2016, KOFA settled 151 separate cases, with a finding of violation of the regu lations in 52 cases.187 
3.183.   On the other hand, complaints  to the courts may result in legally binding decisions and 
may be made in parallel to KOFA procedures. As in other areas, decisions of the court of first 
instance may be appealed to the Appeals Court.  
3.184.   In cases where the complaint relates to a breach of the EEA Agreement, a complaint may 
be made to the EFTA Surveillance Authority, with the right of appeal to the EFTA Court. In July 
2011, the Authority changed its policy regarding proceedings related to publi c procurement. Before 
then, where the Authority was of the view that there had been a breach of rules on public 
procurement, it would invite the EFTA State  to recognize the breach and make a commitment to 
refrain from such breach in the future. Upon receip t of such recognition and commitment, the case 
would be closed. Based on case -law from the Court of Justice of the European Union, this policy 
was changed, and the Authority now pursues cases as long as the contract concerned continues to 
produce effects a nd the EFTA State concerned has not taken suitable corrective measures to 
rectify the breach.188 In 2016, the Authority delivered to Norway one  reasoned opinion (zero in 
2017) relating to public procurement.  
3.185.   Norway is a party to the plurilateral Agreement on Government Procurement and the 
Revised GPA, which entered into force on 6 April 2014. Thresholds in Norwegian kroner were 
notified to the WTO in July 2014 (Table  3.25). As at end -February 2017, the most re cent 
notification on statistics of procurement under the GPA was in July 2014 for 2010 to 2012 
(Table  3.26). 
Table 3.25 Norway GPA thresholds, effective from 15 June 2014  
  Goods  Services  Construction 
services  
Central government entities  SDR 130,000  130,000  5,000,000  
 NKr 1,153,457  1,153,457  44,363,745  
 Applied threshold  1,000,000  1,000,000  39,000,000  
Sub-central government entities  SDR 200,000  200,000  5,000,000  
 NKr 1,774,550  1,774,550  44,363,745  
 Applied threshold  1,550,000  1,550,000  39,000,000  
Other entities  SDR 400,000  400,000  5,000,000  
 NKr 3,549,100  3,549,100  44,363,745  
 Applied threshold  3,100,000  3,100,000  39,000,000  
Source:  WTO document GPA/W/325/Add.8, 14 July 2014.  
Table 3.26 EU procurement and GPA key figures, 2010 -12 
 2010  2011  2012  
Total number of contracts  2,357  2,237  3,850  
Total number of suppliers awarded contracts  3,592  3,451  2,457  
 of which foreign suppliers  143 185 .. 
Contracts above threshold     
 Number  1,899  1,750  3,172  
 Value (NKr billion)  23.5 30.0 58.4 
Negotiated contracts     
 Number  434 415 537 
 Value (NKr billion)  8.2 8.8 10.6 
.. Not available . 
Source:  WTO documents: GPA/119/Add.3, 14 July 2014; GPA/114/Add.4, 14 July 2014; GPA/108/Add.6, 
14 July 2014.  
                                                
187 KOFA online information. Viewed at: https://kofa.no/Avgjorte -saker . 
188 EFTA Surveillance Authority online information (viewed at: http://www.eftasurv.int/press --
publications/press -releases/internal -market/nr/1499 ), referring to joined cases C -20/01 and C -28/01, 
Commission v Germany, viewed at: http://curia.europa.eu/juris/liste.jsf?num=C -20/01&language=en . WT/TPR/S/373 • Norway  
 
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  3.3.7   Intellectual  property rights  
3.186.   Norway is a member of the World Intellectual Property Organization (WIPO), and has 
acceded to the principal  international conventions in the area of intellectual propert y (IP) such as 
the Paris Convention (1885), the Berne Convention (1886), the Patent Cooperation Treaty (PCT), 
the 1989 Protocol to the Madrid Agreement Concerning the International Registration of Marks 
(1996), and the Geneva Act of the Hague Agreement Con cerning the International Registration of 
Industrial Designs (2010).189 However, Norway remains outside some international IP treaties, 
including the WIPO Copyright Treaty (WCT), the WIPO Performances and Phonograms Treaty 
(WPPT), the Patent Law Treaty, and the Singapore Treaty on the Law of Trademarks. Norway is 
planning to join the WCT, the WPPT, and the Beijing and Marrakesh treaties by 2020.190 
3.187.   The EEA Agreement (Annex XVII and Protocol 28) includes provisions on intellectual 
property rights (IPRs). Most of  the EU acquis  in this area is considered EEA -relevant and has 
therefore been included in the EEA Agreement and incorporated into national legislation in Norway, 
including the European Union's Trade Marks Directive, the European Designs Directive, the Pate nts 
Directive (Directive on the legal protection of biotechnological inventions), as well as the EU 
Regulations on supplementary protection certificates for pharmaceuticals and plant protection 
products. The main features of Norway's IP legislation are pre sented in Table 3.27. Norway 
acceded to the European Patent Convention in 2008, and thus also became a member of the 
European Patent Organization. Patents granted by the European Patent Office (EPO) may 
accordingly be validated in Norway. The EEA countries  are not covered by the European Union 
trade mark and community design schemes of the European Union. However, Norway adopted a 
new Trademarks Act in 2010, inter alia , to codify the principle of EEA regional exhaustion. EEA 
regional exhaustion is applicabl e to copyright, trademarks, patents, industrial designs, layout 
designs (topographies) of integrated circuits, and plant breeder's rights.  
Table 3.27 Overview of IPR protection provided by Norway's legislatio n, 2017  
Subject/legislation  Coverage  Duration  Developments since 2012  
Patents  
Patents Act No. 9 of 
15.12.1967, as 
amended  Any invention 
susceptible of industrial 
application  20 years from the application 
filing date; additional 
protection of up to 5 years  
may be granted for medicinal 
and plant -protection products  Accession to the Agreement on 
the Application of Article 65 of 
the European Patent 
Convention (the London 
Agreement) took effect on 
1 January 2015.  
Amendments to the Mortgage 
Act and the Patents Act allow 
separate security to be offered 
in patents and patent 
applications since 1  July 2015.  
Patents Act amended with 
effect from 1  September  2017 
to provide for six -month 
extensions of supplementary 
protection certificates for 
medicinal products that h ave 
been tested for paediatric use 
in conformity with Regulation 
(EC) No.  1901/2006 and 
Regulation (EC) No.  469/2009.  
Plant varieties  
Plant Breeders Right 
Act No. 32 of 
12.03.1993, as 
amended  Varieties of all genera or 
species of plants, 
including hybrids  
between genera and 
species  20 years from year of grant, 
up to 25 years for trees and 
vines Amendments to the Mortgage 
Act and the Patents Act allow 
separate security to be offered 
in plant breeder's rights and 
applications for such rights 
since 1 July 201 5. 
Designs  
Designs Act No. 15 of 
14.03.2003  Designs that are novel 
and have individual 
character  One or more periods of 
5 years from the application 
filing date, up to a maximum 
of 25 years   
                                                
189 Norway has acceded to all updates and additions to the Paris and Berne Conventions.  
190 According to the authorities, national law is already in accordance  with the material provisions of the 
WCT and the WPPT as a result of Norway's implementation of the EU Copyright Directive (2001/29/EC).  WT/TPR/S/373 • Norway  
 
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  Subject/legislation  Coverage  Duration  Developments since 2012  
Trademarks  
Trademarks Act No.  8 
of 26.03.2010  Trademarks that are 
capable of distinguishing 
the goods or services of 
the trademark holder 
from others; protection 
may be obtained by 
registration or use; 
unregistered 
trademarks are 
protected in a similar 
way to registered 
trademarks, and 
broader protection is 
afforded to well -known 
marks  Protection from the 
application date, and for 
10 years from the date of 
application; renewable 
indefinitely for periods of 
10 years   
Copyright  
Copyright Act No. 2 of 
12.05.1961, as 
amended  Literary, scientific, and 
artistic works, incl uding 
computer programs, 
data compilations, 
photographs, 
databases, performing 
artists, producers of 
phonograms, 
broadcasters, first 
fixation of films  Life of the author plus 
70 years; anonymous works 
are protected for 70 years 
from the end of the year in 
which they were publicly 
presented; photographs are 
protected for the life of the 
photographer plus 15 years, 
but no less than 50 years 
from the date in which they 
were taken; for right  holders 
in published sound 
recordings, 70  years after the 
first releva nt performance or 
fixation, for other related 
rights, 50  years after the first 
relevant performance, 
fixation, or broadcast  2012: Copyright Act amended 
to implement Directive 
2010/13/EU regarding use of 
short news reports  
2013: Copyright Act amended 
to str engthen the enforcement 
of digital copyright, clarifying 
Norway's implementation of 
Directive 2001/29/EC  
2014: Copyright Act amended 
to implement Directive 
2006/116/EC, inter alia,  
extending the term of 
protection for performers and 
sound recordings from 50 to 70 
years  
2015: Copyright Act amended 
to implement Directive 
2012/28/EU ("orphan" works) 
and introduce a General 
Extended Collective Licence.  
The Administrative Regulation 
to the Copyright Act amended 
in 2014 (EU services directive) 
and in 2015 (new measures for 
conflict resolution for extended 
collective licences and diligent 
search for right holders for 
"orphan" works)  
Geographical 
indications (GIs)  
Marketing Act No.  47 
of 16.06.1972; 
Trademarks Act No.  8 
of 26.03.2010; Food 
Production and Safety 
Act No.  124 of 
19.12.2003; 
Regulation No. 698 of 
05.07.2002; 
Regulation No. 370 of 
21.03.2013 on wine; 
and Regulation No. 
1148 of 11.10.2006 on 
spirit drinks and 
aromatized drinks  Foreign and national GIs  Indefinite   
Layout -designs of 
integrated circuits  
Layout Design Act No. 
27 of 15.06.1990, as 
amended  Integrated circuits  10 years from the calendar 
year in which the layout -
design was first commercially 
exploited anywhere in the 
world, but maximum 15 
years from the year in which 
the layout -design was 
created   WT/TPR/S/373 • Norway  
 
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  Subject/legislation  Coverage  Duration  Developments since 2012  
Undisclosed 
information  
Marketing Control Act 
No. 2 of 09.01.2009, 
Pharmaceuticals Act 
No. 132 of 
04.12.1992, 
Regulation No. 455 of 
06.05.2015 on plant 
protection products, 
implementing 
Regulation No. 
1107/2009/EC, and 
Public Administrations 
Act of 10.02.1967, as 
amended  Trade secrets of 
commercial value; 
undisclosed data and 
tests Trade secrets enjoy 
protection against unlawful 
commercial use  
Undisclosed pharmaceutical 
data and tests are protected 
for no less than 6  years; data 
and tests for agricultural 
chemical products are 
protected for no less than 10 
years   
Source:  WTO Secretariat, based on information provided by the Norwegian authorities.  
3.188.   Together with its partners in EFTA, Norway has concluded numerous free trade 
agreements that include  provisions on the protection of IP.191 In addition, Norway maintains 
bilateral science and technology agreements with several partners, notably China, Japan,  the 
Russian Federation, and the United States.  
3.189.   Patentstyret – or the Norwegian Industrial Property Office (NIPO) in English – is the 
competent authority for industrial property rights in Norway. NIPO examines applications for 
patents, trademarks, and indu strial designs and assists in the application of international regimes 
and systems. As a result of Norway's accession to the European Patent Convention, an increasing 
number of patents in force in Norway are patents granted by the EPO and subsequently vali dated 
by NIPO (Table 3.28).192 Norway's accession to the London Agreement, which entails a significant 
reduction in the cost of translation, took effect on 1 January 2015.193 At the same time, 
amendments were introduced that allowed for the filing and processing of national patent 
applications and PCT -applications in English. As a result, NIPO currently also accepts national 
patent applications and PCT -applications in English,  and the share of applications submitted in 
Norwegian has fallen to less than 30%. For PCT -applications from Norway, international 
examination may be conducted by the Nordic Patent Institute (NPI), the EPO, or the Swedish 
Patent and Registration Office (PR V).194  
Table 3.28 Norway: Information regarding trademarks, industrial designs, and patents, 
2013 -16 
 2013  2014  2015  2016  
Trademarks applications  
Resident  3,532  3,959  4,097  4,265  
Non-resident  2,969  3,008  3,007  3,302  
International (Madrid)  9,175  8,483  9,526  8,135  
Total 15,676  15,450  16,630  15,702  
Industrial designs applications  
Resident  276 302 250 240 
Non-resident  187 217 183 157 
International (Hague)  830 700 781 832 
Total 1,293  1,219  1,214  1,229  
                                                
191 Provisions on the protection of IPRs have been included in all agreements except for the FTA with 
Canada, and IPR is  a relevant area in ongoing revision processes for existing agreements.  
192 The validation in Norway must be requested within three months of publication of a patent by the 
EPO. 
193 Adherence to the London Agreement reduces the translation requirement for a European patent 
granted in English from the entire patent to the patent claim only. However, a Norwegian translation of the 
patent claim must always be provided. Applicants may su pply the patent specification in Norwegian when no 
English translation is available.  
194 The establishment of the NPI (by the patent authorities of Denmark, Iceland, and Norway) was a 
response to the expected loss of business from joining the EPO. Applicants  from Sweden are also invited to use 
the services of the NPI. Conversely, some Norwegian clients use the Swedish Patent and Registration Office to 
process their PCT patent applications. The NPI also provides patent information services to businesses outsid e 
Denmark, Iceland, and Norway.  WT/TPR/S/373 • Norway  
 
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   2013  2014  2015  2016  
Patent applications  
Resident  1,060  1,052  1,120  1,195  
Non-resident  146 95 129 121 
International (PCT)   538 417 556 746 
Total 1,744  1,564  1,805  2,062  
Patents granted  
Granted  1,421  1,433  1,449  2,526  
European patents validated in Norway  2,220  2,604  3,340  4,495  
In force at year end  
Patents   
19,418   
21,218   
23,350   
27,657  
Designs  7,729  8,402  8,978  9,543  
Trademarks  200,336  207,918  214,449  217,437  
Source:  WTO Secretariat, based on annual reports from the Norwegian Patent Office.  
3.190.   NIPO acts independently of the ministries and the Government in its handling of individual 
applications for industrial property rights. Until early 2013, appeals of its decisions were dealt with 
by a separate department within NIPO. However, as from 1 April 2013, co mplaints should be 
addressed to the Appeal Board for Industrial Property Rights (Klagenemnda for industrielle 
rettigheter – KFIR), an independent judicial entity falling administratively under the Ministry of 
Trade, Industry and Fisheries.195 KFIR has, since  its establishment, decided well over 100 cases 
per year, mostly in relation to trademarks. The decisions of KFIR may be appealed further to the 
courts.  
3.191.   The Ministry of Culture has the overall responsibility for copyright legislation and policies 
related to copyright. A proposal for a new Copyright Act, the first overall revision for more than 
50 years, was presented to Parliament in April 2017. The aim of the new law is to modernize and 
simplify the Copyright Act to make it easier to use for all involved.  Parliament is expected to 
discuss the proposed act in spring 2018.  
3.192.   The enforcement of copyright and related rights is up to the individual right holder, who 
often transfers the administration and enforcement of rights to a right holder organization 
accor ding to the type of protected work, such as the organizations for visual artists (BONO), 
independent producers of phonograms (FONO), performing artists (GramArt), and creators of 
music (Tono). Under the extended collective licensing system in the Copyright  Act, rights are 
collectively managed by collective management organizations such as Kopinor (reprographic use in 
education and organizations) and Norwaco (secondary use of audiovisual works in cable 
networks).196  
3.193.   Norway is not a contracting party to the Li sbon Agreement for the Protection of 
Appellations of Origin and their International Registration. Domestically, geographical indications 
(GIs) and appellations of origin are protected according to the Marketing Act (1972), the 
Trademarks Act (2010), and th e Food Production and Safety Act (2003). Regulation No. 698 of 
5 July 2002 (as amended) establishes the criteria and procedures for the certification of GIs, 
appellations of origin, and designations with traditional character for food products (other than 
waters, wine, and spirits). Decisions to grant such protection are taken by the Norwegian Food 
Safety Authority (Mattilsynet). The applicant, who may be a group of primary producers and/or 
processors or a legal person (i.e. not a group), then becomes the h older of the registered 
indication or appellation.197 The scheme has been administered by the Norwegian Food Branding 
Foundation (Matmerk) since 2007. Although there are time variations, on average an application is 
processed in 18 months.  
3.194.   As of December 201 7, 28 Norwegian food specialties had been certified as GIs, 
appellations of origin, or designations with traditional character, including Norwegian "Pinnekjøtt" 
                                                
195 The competence of KFIR extends to decisions taken by NIPO in respect of patents, trademarks, 
industrial designs, the use of company names, and according to the act of precious metals, as well as decisions 
of the Plant Var iety Board.  
196 The extended collective licence is only used in instances where the individual clearance of rights 
would be very burdensome or impossible, e.g. for copies made in schools for educational purposes or for 
retransmission of audiovisual works by cable.  
197 Each decision is promulgated as a separate regulation, e.g. Regulation No. 1235 of 14 November 
2006 on the appellation "Gamalost frå Vik".  WT/TPR/S/373 • Norway  
 
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  (lamb), Norwegian "Fenalår"198; "Stockfish from Lofoten"199; two types of local cheeses; apples, 
sweet cherries, and plums (from Telemark or Hardanger); and pears, apple juice, and cider (from 
Hardanger).200 In addition, the Italian producer associations of three food specialties have sought 
and been granted protection in Norway, i.e. for Prosciutto di Pa rma, Parmigiano Reggiano, and 
Gorgonzola. The three Italian products certified in Norway according to the Norwegian GI rules 
have equal protection to Norwegian registered products.  
3.195.   Norway does not participate in the EU registration systems for agricultural  products and 
foodstuffs as agriculture falls outside the scope of the EEA Agreement.201 Registration is thus 
required in the EU system as well as in the national system of Norway to enjoy protection against 
misuse, imitations, etc. in both markets. However, the EU systems for the protection of GIs for 
wines, spirits and aromatized drinks hav e been incorporated into the EEA Agreement, and these 
GIs thus enjoy protection in Norway as well as in the European Union. Norway has two such GIs – 
Norsk Akevitt and Norsk Vodka. As for agricultural and food GIs, two Norwegian specialties 
("Fenalår" and "Stockfish from Lofoten") have been certified as GIs in the European Union and are 
thus provided the same protection there as registered products from EU member States.  
3.196.   Parliament amended the industrial property rights legislation to strengthen the positi on of 
right holders in May 2013.202 The amended law, which entered into force on 1 July 2013, includes 
new provisions on damages, corrective measures, and enhanced criminal sanctions. The right 
holder may henceforth opt for compensation in the form of a reas onable licence fee, the infringer's 
profit, or the coverage of his/her own financial loss. Measures may be imposed against infringing 
goods as well as the main materials and implements used in the manufacture of such goods. The 
maximum term of imprisonment  was increased from three months to one year, rising further to 
three years in serious cases, e.g. infringement on a commercial scale. In addition, the infringer 
may be required to pay for the dissemination of a judgement on infringement, and the right hol der 
(including of copyright) may petition the courts to obtain information about the distribution 
networks and the origin of infringing goods and services. Except for preliminary injunction cases, 
all cases pertaining to registered industrial property righ ts are to be handled by the Oslo District 
Court. According to the Norwegian authorities, the new enforcement regime is at least on par with 
that applicable within the European Union.203 
3.197.   Having ruled on a preliminary order, the district court communicates its  decision to 
Norwegian Customs, which is obliged to identify and detain goods that are suspected to violate 
IPRs. The customs authority may also take action ex officio  against such goods. Norwegian 
Customs received additional funding in 2010 to expand staf f and appoint a dedicated coordinator 
for IPRs. The most commonly detained  articles in the last three years (2015 -17) have been 
mobile/smartphone spare parts, wheel -rims, furniture, and (in 2017) pop -sockets for 
smartphones.204  
3.198.   In the follow -up to a 2013 wh ite paper205, NIPO, the Ministry of Culture, and Norwegian 
Customs have set up a joint website to combat pirating and counterfeiting. The website – 
www.velgekte.no  – is part of a wider interagency network that includes the Ministry of Trade, 
Industry, and Fisheries; the Ministry of Justice and Public Security; the Norwegian National 
Authority for Investigation and Prosecution of Economic and Environmental Crime; the Norwegian 
Medicines Agency; the Norwegian Directorate f or Civil Protection; and Innovation Norway.206 The 
information is organized in a manner designed to appeal to the general public as well as to expert 
                                                
198 "Fenalår" is a salted and dried leg of lamb or young mutton, marked as "traditional" or "cured" (if 
also cured). Regulation No. 935 of 3 October 2012 sets requirements for the origin and state of the raw 
material, the production process, as well as the characteristics of the finished product.  
199 The product is also a registered Protected Geographical Indicatio n in the European Union.  
200 In early 2018, three applications were under consideration; for "Setersmør" (butter), "Målselvnepe 
fra Nord -Norge" (turnip), and "Lynglam" (lamb).  
201 Although Norway's GI rules on foodstuffs are national, the requirements are base d on, and therefore 
quite similar to, the EU rules.  
202 Act No. 25 of 31 May 2013 Amending Legislation on the Protection of Industrial Property Rights, etc.  
203 Directive 2004/48/EC of the European Parliament and of the Council of 29 April 2004 on the 
enforce ment of IPRs has not been incorporated into the EEA Agreement and is therefore not binding in Norway.  
204 The number of seized articles was highest (over 42,000) in 2017. However, the value of the detained 
goods declined steadily, from NKr 34.9 million in 20 15, to NKr 19.7 million in 2016, and NKr 13.26 million in 
2017.  
205 Meld. St. 28 (2012 -2013), Unique ideas, major assets, 12 April 2013.  
206 The website includes a version in English.  WT/TPR/S/373 • Norway  
 
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  users. Some 37,000 unique users have visited the website since its launch in March 2015. The 
website is freq uently used by journalists to obtain information about IPR infringements, and the 
number of visitors always rises in response to awareness campaigns launched by the 
Governmental Network Against IPR Infringement.  
 
 WT/TPR/S/373 • Norway  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Agriculture  
4.1.1.1   Main features  
4.1.  Lands dedicated to agriculture in Norway total roughly 1 million hectares, i.e. no more than 
3% of the entire land mass. Cereals production takes place on approximately one third of the 
agricultural lands ; the rest is for the most  part only suitable for the cultivation of grass or used as 
pastures. As some of the best agricultural lands are located close to major population centres, 
territories under pressure from urbanization are monitored and subject to controls. Parliament 
decid ed in 2004 that the annual loss to urbanization should not e xceed 600 hectares. In 
December  2015, Parliament narrowed this objective further – to 400 hectares by 2020.1  
4.2.  Norway had just over 41,000 registered farms at the end of 2016.2 The number of farms has 
been declining steadily for decades. The reduction is currently around 2% per year. Norway's 
climate generally limits cultivation to a narrow  range of crops. Nearly 80% of the farms dedicate 
land to grass and pastures. Cereals production is dominated b y barley, followed by wheat 
(including feed wheat) and oats. A significant share of the horticultural output takes place in 
greenhouses. Livestock farming is focused on dairy and meat (beef, pork, mutton, and poultry). 
The prominence of dairy in Norwegian livestock farming has gradually diminished in favour of meat 
production, in particular of pork, poultry, and beef (Table 4.1).  
Table 4.1 Production income in agriculture, 1989, 2010, and 2016  
(NKr million)  
 1989  2010  2016  
Total production income  24,525  26,132  33,717  
Crops (total)  6,092  6,835  8,990  
-Grains, dry peas, and oil -seeds  3,053  2,455  3,000  
-Potatoes  522 628 689 
-Horticultural products (vegetables, fruit, berries and flowers)  2,330  3,514  4,956  
-Other crops  187 238 345 
Livestock products (total)  17,551  18,414  23,498  
-Milk 9,176  7,531  9,430  
-Meat, including pork  7,016  9,552  12,340  
-Wool 226 122 143 
-Eggs 757 837 1,045  
-Fur-bearing animals  290 278 358 
-Other livestock products  86 93 182 
Other income  644 900 976 
Changes in stocks  238 -17 252 
Expenditures  -17,728  -23,064  -28,800  
Net result  6,797  3,068  4,917  
Government subsidies  5,054  9,834  10,502  
Real interest on borrowed capital  -1,573  -677 -360 
Remuneration for labour and own capital  10,277  12,225  15,059  
Note:  The data for 2016 is preliminary.  
Source:  WTO (2012); and Budsjettnemnda for jordbruket, Totalkalkylen for jordbruket  (August 2017). 
Viewed at: https://brage.bibsys.no/xmlui/bitstream/handle/11250/2461373/Totalkalkylen -for-
jordbruket_2017.pdf?sequence=1&isAllowed= y. 
4.3.  With total agricultural land roughly stable and a diminishing number of farms, the size of the 
average holding has more than tripled over the last 40 years. Norwegian farms nevertheless 
                                                
1 Registration of arable land ceded to urbanization commenced in 1976. The target set from 2004 was 
approximately half the annual rate of conversion at that time. In 2015, some 630 hectares of arable land was 
converted to other uses. Norway's agricultural t erritory is currently increasing slightly as the rate of land 
turned into cultivation is about three times higher than the permanent loss.  
2 Statistics Norway online information. Viewed at: https://www.ssb.no/jord -skog-jakt-og-
fiskeri/statistikker/stjord/aar/2017 -01-17. WT/TPR/S/373 • Norway  
 
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  remain small by international comparison.3 The land of farms that c ease production is normally 
leased to neighbouring farmers rather than put up for sale. Locally enforced requirements to 
maintain primary residence and upkeep of all agricultural land restrict the conversion of district 
farms into recreational properties.  
4.4.  Norwegian livestock farms, particularly those raising pigs or poultry, have also been 
expanding in size over the years, although regulations restrict certain lines of production. The 
domestic supply of milk has been regulated by a system of farm -based pro duction quotas since 
1983. A major increase in productivity has led to a reduction in the number of dairy cows of 
approximately 30% over the last 20 years.4 Meanwhile, the number of cattle raised exclusively for 
meat has more than doubled. Norway had appro ximately 8,800 dairy farms and 4,900 beef farms 
in 2015. Regulations limit the size of individual livestock holdings to maintain farms of different 
sizes, to disperse the production (e.g. to minimize risks related to animal diseases), and to support 
farmin g in less favourable areas. An approval system affects the production of chicken, turkey, 
eggs, and pork. Regulations have become somewhat more flexible recently. The limit on chicken 
farms that do not require approval was raised from 120,000 chickens for slaughter (or trade) to 
280,000 chickens per year between 2013 and 2015.5 Milk quotas may be leased or traded, and the 
production ceiling was raised to 900,000 litres per year per unit as from 1  January  2015.6  
4.5.  Domestic production makes up a large share of  domestic consumption of key commodities in 
Norway. Overall, the self -sufficiency ratio is estimated to have oscillated around 50%, in energy 
terms, for several decades.7 Variations are considerable, depending on the product. Food 
consumption covered by domestic  production is particularly high for fresh milk, cream, and eggs 
(99%), butter (97%), and cheese (87%). Moreover, a high ratio for meat consumption in general 
(92%) masks that domestic supply matches demand fully for pork, lamb, and poultry meat, whi le 
there are substantial imports of beef and veal (Table 4.2). Imports of cereals are determined by 
the size of the Norwegian harvest. With favourable weather conditions, the demand for food wheat 
is nearly met with local production. At the other end of th e scale, rice, sugar, many vegetables, 
and all tropical products are imported due to climatic reasons.  
Table 4.2 Key indicators on selected domestic production, average 2012 -13 
(Million kg, unless otherwise indicated)  
Product  Production  Exports  Imports  Consumption  
Cheese  91.3 13.7 11.5 89.1 
Butter  16.2 0.0 1.3 17.4 
Wheat  228.2  0.1 507.4  735.4  
Rye 8.4 0.0 19.3 26.6 
Barley  511.7  0.1 42.3 553.9  
Oats 259.4  0.0 43.2 259.5  
Beef and veal  80.9 0.9 16.1 97.3 
Lamb  23.3 0.0 3.0 26.5 
Pork 129.5  6.3 3.8 127.9  
Poultry meat  97.8 0.8 2.4 101.6  
Eggs 63.5 1.6 0.8 62.8 
Source:  WTO Secretariat calculations, based on WTO document G/SCM/N/284/NOR, 7 July 2015.  
4.6.  Productivity growth has been much higher in Norwegian agriculture than in other sectors of 
the mainland economy in recent years. Farmers have been swift in ad opting new technologies. 
About one third of the raw milk produced in Norway in 2015 was milked by robots, and the share 
is expected to reach 50% within the next 3 -4 years. Other examples of increasing robotization are 
                                                
3 Although there are important regional differences, a Norwegian farm covers 23.5 hectares of land on 
average. By contrast, farms in neighbouring  Sweden and Finland are on average twice that size, and almost 
three times larger in Denmark (67 hectares).  
4 The annual yield of a Norwegian dairy cow is typically around 7,400 litres of milk at present.  
5 Similarly, the ceiling for turkey farming was rai sed from 30,000 to 60,000 slaughtered or traded fowls 
per year. According to Regulation No. 611 of 1 April 2004, the limitation is calculated over a two -year period, 
and may be exceeded by up to 15% in any given year provided the production is cut in the s ubsequent year.  
6 The previous limits were 412,000 litres/year for individual dairy farms and 773,000 litres/year for co -
production units. Leasing of milk quotas was introduced in 2008. As for the sale of milk quotas, up to 80% of 
the sold quantity may be  traded on the open market, while minimum 20% must be sold to the Government. 
However, the Norwegian Agricultural Authority may also sell quotas to interested farmers. The agreed price 
was for such sales was NKr 2.50 per litre in 2016.  
7 Measured according  to the protein level of the Norwegian diet the self -sufficiency ratio is around 70%.  WT/TPR/S/373 • Norway  
 
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  "intelligent" feed carts, the use of drones for mapping and measuring, and technologically 
controlled application of pesticides and fert ilizer. A number of research projects funded under the 
EU Horizon 2020 programme are being developed at the Norwegian University of Life Sciences 
(NMBU). The Norwegian Institute of Bioeconomy Research (NIBIO) has been operating a Centre 
for Precision Agric ulture to facilitate the development and dissemination of new technologies since 
August 2016.8 
4.1.1.2   Policy framework  
4.7.  The four basic objectives for Norway's agricultural and food policy, as set out in White Paper 
No. 9 (2011 -12) and confirmed  in White Paper No. 11 (2016 -17), are: food security, production in 
all parts of Norway, increased value added, and sustainable agriculture with lower emissions of 
greenhouse gases.9 An important element of the food security aspect is the continuous safeguard 
of a high level of plant and animal health. Nationwide production in a country where conditions 
may be harsh on agriculture calls for the mobilization of the entire resources of farms, including 
the development of agro -tourism, forestry, biodiversity, and landscape protec tion. The 
Government sees a considerable potential in the development of local food specialties, and 
encourages further growth in the annual turnover (from NKr 4.8 billion at present towards 
NKr 10 billion by 2025). Agriculture is part of a "green shift" in the Norwegian economy aiming at 
reducing the environmental footprint of human activity, including the fulfilment of national targets 
and international benchmarks and objectives that Norway has signed up to. In 2011, future land -
based food production was  targeted to rise in line with projected population growth (20% over 
20 years). The current Government has not formulated an equally specific production target, but 
sees potential for increased production in a growing domestic market where such expansion w ill 
not run counter to other broad aspects of economic policy.  
4.8.  The Ministry of Agriculture and Food has prime responsibility for policies relating to 
agricultural production, food, and management of the entire food chain, acting together with the 
Ministry  of Trade, Industry and Fisheries, and the Ministry of Health and Care Services. The 
Norwegian Agricultural Authority (Landbruksdirektoratet) is the implementing agency for the 
Ministry of Agriculture and Food, while it also undertakes studies and provides  advice on policy 
issues.10 
4.9.  The Government negotiates key parameters of agricultural policy, including the pricing of 
certain commodities, forms and level of support, welfare programmes, and implementation issues , 
with the two nationwide farmers' organizations, i.e. the Norwegian Farmers' Union (Norges 
Bondelag) and the Norwegian Farmers' and Smallholders' Union (Norsk Bonde - og Småbrukarlag). 
The practice of annual Basic Agricultural Agreements has been in place since 1950. The system 
aims at joint agreement between the Government and the two organizations, but the Government 
may – subject to certain conditions – conclude an agreement with a single partner. Such was the 
case in 2015 and 2016 (Table 4.3). If no agr eement is reached, the Government may invite 
Parliament to fix the essential parameters (e.g. overall changes in budget transfers and market 
prices), and let the negotiating parties work out the detailed allocation of Parliament's package.11 
Such was the ou tcome in 2017.  
4.10.   The Marketing Act (Omsetningsloven) of 10 July 1936 regulates the domestic market for 
certain meats (beef, mutton, pork, and poultry); milk, butter, and cheese; cereals and oilseeds; 
potatoes, vegetables, fruit and berries; and fur skins. F urther to the Marketing Act, the Norwegian 
Agricultural Marketing Board (Omsetningsrådet) attempts to balance supply and demand for key 
Norwegian agricultural produce. Its guiding objectives are: (i) stable producer prices with minor 
geographical dispersio n; (ii) stable market conditions for goods produced; (iii) stable supply in all 
local consumer markets at relatively uniform prices; and (iv) ensuring that farmers obtain the 
target prices established in the Basic Agricultural Agreement with the caveat tha t average 
                                                
8 Information (in English) is available at www.presisjonsjordbruk.no . 
9 Meld. St. 9 (2011 -2012), Landbruks - og matpolitik ken, Velkommen til bords , and Meld. St. 11 
(2016 -17), Endring og utvikling, En fremtidsrettet jordbruksproduksjon .  
10 The Norwegian Agricultural Authority (Statens landbruksforvaltning) was merged with the agency for 
the management of reindeer resources (S tatens reindriftsforvaltning) in 2014.  
11 The annual negotiations may also be settled through arbitration. This option was last exercised in 
1978.  WT/TPR/S/373 • Norway  
 
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  observed market prices for the year should stay at, or slightly below, the agreed level.12 The Basic 
Agricultural Agreements set target prices for fresh milk, pork, grain, oilseeds, potatoes, and apples 
and various vegetables.13 Revised target pric es normally apply from 1 July in the marketing year. 
Target prices were abolished for beef in 2009, and for sheep meat, lamb, and eggs from 
1 July 2013. These products are subject to volume -based regulation, for which the market 
regulator is obliged to ann ounce "planned average wholesale prices" for consecutive six -month 
periods. As for poultry, target  prices were eliminated in 2007, and there is currently no market 
regulation. A reference price, determined at the wholesale level, is used for calculation of  the 
applied tariff.  
Table 4.3 Main elements of agricultural agreements, 2013 -17 
Agricultural  
Agreement  Main elements  
2017 Total frame of NKr 625 million decided by Parliament. Allocation agreed among the ne gotiating 
parties. Increases in target prices for milk, cereals, potatoes and vegetables totalling 
NKr 150 million; NKr 410 million to be provided from the state budget. The administrative 
number of milk producing regions reduced from 18 to 14.  
2016 Agree ment concluded with the Norwegian Farmers' Union only. Net increase in target prices of 
NKr 190 million and additional budgetary transfers of NKr 100 million within an overall frame of 
NKr 350 million. Higher support encouraging the production of cereals f or human consumption 
and high quality beef. Deadline in welfare scheme for dairy cows extended from 2024 to 2034.  
2015 Agreement concluded with the Norwegian Farmers' Union only. Higher target prices for milk, 
pork, potatoes, cereals, fruit and vegetable s (NKr 315 million) within a total frame of 
NKr 400 million, including increased budgetary transfers of NKr 45 million.  
2014 Total frame of NKr 425 million decided by Parliament. Boost in farmers' incomes mainly from 
higher target prices for milk, potatoes, cereals, fruit and vegetables (NKr 340 million). Limit on 
annual deficiency payments to animal farming doubled (to NKr 560, 000 per unit). Ceiling on 
milk production increased to 900,000 litres/year per production unit.  
2013 Total frame for increase in transfers: NKr 1.27 billion, of which NKr 500 million provided from 
the state budget.  
Target prices raised by NKr 580 million . Price supplement introduced for high quality beef.  
Source:  Norges Bondelag online information (annual guidebooks to the agreements). Viewed at: 
www.bondelaget.no . 
4.11.   Day-to-day market regulation is performed by the three most prominent producer 
cooperatives, Tine SA (dairy), Nortura (meat and eggs), and Norske Felleskjøp BA (grains) 
(Chart  4.1).14 Market regulation is founded on three basic obligations: (i) the market r egulator's 
acceptance of all produce offered to it; (ii) its obligation to supply all processors on 
non-discriminatory terms; and (iii) the non -discriminatory provision of relevant market information 
to all parties concerned. The market regulators also und ertake advisory and extension services, 
consumer information, and promotional activities. Tine Råvare and Nortura are sole market 
regulators in their respective areas, while Norske Felleskjøp may undertake market regulation 
together with other grain trader s (through tender). No formal market regulator ensures that the 
target prices are attained in the vegetable sector. However, Grøntprodusentenes Samarbeidsr åd 
(GPS) may occasionally intervene to balance the household market for apples and potatoes.  
4.12.   The mark et regulators collect a fee from the remittances for farm deliveries to finance 
promotional activities and possible actions required to balance markets.15 The fees are established 
by the Ministry of Agriculture and Food upon recommendations from the Norwegi an Agricultural 
Authority in consultation with the NAMB, normally for each calendar year, and held in separate 
accounts for each commodity subject to market regulation.16 The scope of the measures envisaged 
                                                
12 The objectives have remained unchanged since they were set out in White Paper No. 19 (1999 -2000) 
on Norwegian agriculture and food production.  
13 Ecological produce may be granted an unspecified price supplement.  
14 Norwegian farmers have founded 16 produce r cooperatives operating under an umbrella organization, 
the Norwegian Agricultural Cooperatives (Norsk Landbrukssamvirke). For further details regarding these 
cooperatives, see WTO 2012.  
15 The fees charged during 2016 totalled NKr 360.2 million. In addition, the Government financed the 
market balancing levy for horticultural products (NKr 20.5 million) through the BAA.  
16 On 21 December 2017, the Ministry of Agriculture and Food announced t he following market 
balancing fees applicable in 2018: cow milk – NKr 0.05/litre; beef and veal – up to NKr 2.00/kg; sheep and 
lamb meat - up to NKr 4.00/kg; pork – up to NKr 2.00/kg; eggs – NKr 0.70/kg; chicken – NKr 0.28/kg; turkey 
NKr 0.28/kg; and cerea ls and oilseeds – up to NKr 0.08/kg. Viewed at: WT/TPR/S/373 • Norway  
 
- 105 - 
 
  depends on the applicable market regulation model (Table  4.4) as well as the nature of the 
product. For meat, the most common measures are temporary storage or early slaughter. The 
market for eggs (in shell), which  experiences seasonal fluctuations in demand, may be balanced 
through processing for industr ial uses or pre -scheduled slaughtering of hens. Food quality produce 
(e.g. grain, potatoes, and apples) may be converted to animal feed or industrial usage. A 
structural surplus has developed in the production of goat milk. The surplus has prompted action 
such as the blending -in of goat milk in cheese or animal feed, and exportation of frozen curd. The 
withdrawal of production quotas has also been discussed. Exportation as a market balancing 
measure is still available to a limited extent for cheese, butter,  pork, and processed agricultural 
products but, subsequent to the Nairobi Package adopted at the Tenth Ministerial Conference in 
December 2015, will cease to be an option by the end of 2020 at the latest.17  
Chart 4.1 Market regulation for agricultural products  
 
Source:  NAMB , Annual report 2016 (in Norwegian).  
Table 4.4 Market balancing options  
Target pricing  Volume model  Reference pricing  
Target price established  in the 
Basic Agricultural Agreement 
(BAA)  No target price established in the 
BAA, but market regulator 
announces the planned average 
wholesale price for each six months  No market regulator, no market 
regulation, and no mandatory 
acceptance or supply provi sions 
Market regulator ensures that 
target prices are attained in a 
balanced market  Storage is subject to ceiling  No attempt to balance the market 
or regulate the production  
If the target price is exceeded, a 
lower target is fixed for the 
following year  Exports undertaken in exceptional 
circumstances (no longer possible 
from 2021)  A reference price (wholesale) is 
established, based on the previous 
year, to determine the applied rate 
of import duty  
The Norwegian Agricultural 
Authority reduces the import duty 
if the target price exceeds the 
upper price limit for two 
consecutive weeks  Tariff reductions as under target 
pricing  Tariff reductions effected through 
administrative procedure when 
observed market price exceeds 
upper price limit  
Applicable to milk,  grain, pork, 
potatoes, apples and 10 types of 
vegetables  Applicable to beef, sheep/lamb and 
eggs Applicable to poultry, commonly 
known as "the chicken model"  
Source:  Norges Bondelag, Jordbruksoppgjøret 2017, Ny jordbruksmelding – ny kurs (in Norwegian). Viewed 
at: 
https://www.bondelaget.no/getfile.php/13764146/Bilder%20fylker/M%C3%B8re%20og%20Romsda
l/Dokumenter/2017/Studieheftet%202017%20til%20web.pdf . 
                                                                                                                                                  
https://w ww.regjeringen.no/no/dokumenter/forskrift -om-endring -av-forskrift -29.-juni-1999-nr.-763-om-
omsetningsavgift -pa-jordbruksvarer -og-om-overproduksjonsavgift -pa-mjolk/id2582965/ . 
17 Of the 2,036 tonnes of pork exported in 2016, about 93% of the quantity was exp ort for domestic 
market balancing. The revised quantity ceilings for Norway as a result of the Nairobi Package are 15,929 
tonnes (cheese), 1,039 tonnes (butter), and 1,898 tonnes (pork), respectively.  
Ministry of Agriculture and FoodAuditor
The Norwegian Agricultural 
Marketing Board (NAMB)Chart 4. [Norway] Market regulation for agricultural products
The Norwegian 
Agricultural Authority 
(Secretariat)
Market regulators
Tine SA (milk)Nortuna SA 
(meat and eggs)Norske Felleskjøp BA 
(grain)
NAMB. Annual report 2016 (in Norwegian). Source: WT/TPR/S/373 • Norway  
 
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  4.13.   Price rebates may be required  when commodities are diverted to less profitable uses. Such 
write-downs may be part financed by the market balancing levy (e.g. for grains) or paid by the 
Government as agree d in the BAA. The latter option is applied to potatoes used in the manufacture 
of spirits and potato starch, grains, and other domestically  produced raw materials used by the 
processing industry.  
4.14.   In the dairy sector, production is limited by the milk quota  system. In 2016, the available 
quota for producers of cow milk totalled 1,632 million litres, while actual deliveries amounted to 
1,543.2 million litres.18 The second major market balancing measure is a price equalization 
scheme that guarantees the milk pr oducer the same price irrespective of his/her location and the 
end use of the raw milk. In practice, liquid milk and liquid cream are taxed, while goods such as 
butter, mature cheeses, and milk powder are subsidized.19 The scheme, which is entirely financed  
through equalization levies, is also used to support transportation costs from farm to dairy, the 
distribution of milk in northern  Norway, and the delivery of milk free of charge to schools 
throughout Norway. Export subsidies for hard cheeses, principally  Jarlsberg, are also financed 
through this scheme. Although the exported volumes have been declining, cheese exports still 
absorb approximately 8% of the raw milk produced in Norway.  
4.15.   In White Paper No. 11 (2016 -17), the Government recommended the continuation of Basic 
Agricultural Agreements and most existing market regulation measures, but it also made a number 
of proposals which, in its view, would make the system more flexible and e fficient, and stimulate 
competition in the processing and distribution sectors. Among the principal recommendations 
were: (i) the transfer of pork from the "target price" to the "volume" model20; (ii) fewer milk 
producing regions to reduce observed geograph ical price differences in milk quota sales and 
leasing; (iii) the purchase of goat milk quotas and termination of market balancing for goat milk; 
(iv) the discontinuation of the current market regulation for eggs and grains, leaving the 
Norwegian Agricultu ral Authority in charge of future balancing measures; and (v) the abolition of 
welfare schemes in favour of higher deficiency payments per animal. However, most of these 
proposals remain unimplemented as they have not found a majority in Parliament .  
4.1.1.3   Borde r measures  
4.16.   The tariffication of non -tariff measures in the Uruguay Round resulted in high bound rates of 
import duties for key commodities produced in Norway, estimated to be in excess of 300% for live 
animals, meat, and most dairy products; and above 200%  for cereals (Chapter 3). By contrast, 
commodities not grown in Norway, and consequently imported, have been bound at zero or very 
low levels of duty.21 About 55% of the agricultural tariff lines in Norway's Goods Schedule are 
expressed as dual bound rates,  i.e. the higher of a specific or an ad valorem  rate. The prevalence 
of dual bound rates is particularly pronounced for dairy products (100%), animals and products 
thereof (90%), and cereals and preparations (76%).  
4.17.   In the 1990s, as new post -Uruguay Round a pplied rates were being established for 
agricultural products, Norway generally chose the specific rate option in case of dual bound rates, 
even though the ad valorem  rate could have offered more protection. However, the protective 
effect of a specific dut y is eroded as import prices rise. In 2010, Norway decided to move to ad 
valorem  import duties on liquid milk and cream, and the switch was also implemented for certain 
hard cheeses, beef (steaks and fillets), and lamb meat with effect from 1 January 2013.22 
According to the Government, there are currently no plans to make further changes in the 
                                                
18 Norwegian Agricultural Authority, Annual Report 2016  (in Norwegian). Above -quota deliveries are 
accepted, but subject to a "penalty" of NKr 4.80 per litre.  
19 The fees, applicable from 1 July 2017, amounted to NKr 1.92 per litre for liquid milk and NKr 13.57 
per litre for liquid cream. In 2014, the total fee  revenue was NKr 845 million for liquid milk and NKr 425 million 
for liquid cream. Yoghurt and fresh cheeses have been zero rated since 1 July 2016.  
20 Under the WTO framework, moving pork from amber box to blue box would reduce Norway's annual 
outlays on a mber box support by some NKr 2 billion.  
21 Rice and sugar are special cases. The bound rates for imports for human consumption are zero or 
very low. Destined for animal feed, where rice and sugar compete directly with domestically  grown ingredients, 
the bo und rates are substantially higher.  
22 The increase in border protection has facilitated a gradual increase in the target price for raw milk, 
rising from NKr 4.41 per litre in 2009 -10 to NKr 5.41 at present. For farmers supplying the dairy cooperative 
Tine SA, its operating profit produces an important income supplement. The Tine dividend, calculated as a 
deferred payment on actual milk deliveries from each member, amounted to NKr 0.66 per litre for 2016.  WT/TPR/S/373 • Norway  
 
- 107 - 
 
  specific/ ad valorem  tariff structure, taking due account of the interests of Norwegian consumers 
and Norway's trading partners.23 
4.18.   Although Norway's agricultural tarif fs are generally high, most high rates are nevertheless 
well below the bound levels (Chapter 3). The main purpose of the import duties is to ensure that 
the target prices established in the annual Basic Agricultural Agreements are met, but not 
exceeded. Up per price limits, ranging from 5% (milk) to 12% (fruit and vegetables), are stipulated 
for all goods subject to target pricing, "planned average wholesale prices", or reference pricing. 
Temporary general tariff reductions are triggered automatically when t he domestic market price 
exceeds the upper price limit for two consecutive weeks. However, the Norwegian Agricultural 
Authority is not obliged to wait for the breach of a price limit, and may announce reduced tariff 
rates before price pressure builds in th e domestic market.24 General tariff reductions are granted 
automatically to all importers with no quantitative ceilings. In addition, tariff reductions may be 
granted individually to importers.25 In 2017, the NAA granted 264 general tariff reductions and 
3,811 individual tariff reductions.  
4.19.   Imports are also regulated through tariff quotas, including preferential TRQs, at no or low 
rates of import duty. Many of the TRQs negotiated within the WTO framework are not effective or 
fully utilized, as the applied tar iff is lower or equal to the in -quota rate or, as in the case of poultry 
and eggs, self -sufficiency and SPS measures limit the scope for imports. WTO quotas are utilized 
for importation of beef and lamb. Norway's GSP scheme includes TRQs for beef, honey, a nd 
canned vegetables. Beef may be imported duty -free from Namibia, Botswana, and Swaziland 
under the GSP TRQ or under an additional TRQ within the FTA between Norway and SACU. 
Preferential TRQs also exist for imports from EFTA/Iceland, Canada, and Egypt (C hapter 3).  
4.20.   Norway grants TRQs or preferential tariff treatment to the European Union for a range of 
agricultural products  further to Article 19 of the EEA Agreement, which calls for progressive 
liberalization of agricultural trade between Norway and the Eu ropean Union. The first bilateral 
"Article 19" agreement entered into force on 1 July 2003, and a second package of additional 
preferences on 1 January 2012. Negotiations on a third "Article 19" agreement were concluded in 
April 2017, and the new package w ill enter into force once ratified by the parties. Under the new 
agreement, Norway will expand its existing TRQs for products such as bovine meat, cheese, and 
meat products (sausages, ham, duck meat, etc.). About 75% of Norway's cheese imports are 
currentl y imported at zero duty under the EU TRQ.26 
4.21.   Protocol 3 of the EEA Agreement regulates the bilateral trade in processed agricultural 
products such as flavoured yoghurt, chocolate, frozen pizza, soups, and sauces. Designed to 
ensure a level playing field for the "industrial component" of the final product, Protocol 3 allows 
Norway and the European Union to compensate for price differences in agricultural raw materials 
through a complex system of import duties based on product formulas, internal price rebates, and 
export restitutions. As the price level for basic commodities is generally higher in Norway than in 
the European Union, the Norwegian Government allocates approximately NKr 250 million to price 
rebates and export restitutions through the annual state b udget (Chapter 1150).27 Protocol 3 has 
not been revised since November 2004.28 The European Commission and Norway carry out a joint 
review of the protocol . The last such review, in 2014, concluded that that the protocol functioned 
according to its objectives .  
                                                
23 White Paper No. 11 (2016 -2017), p. 60.  
24 For examp le, some 16,000 tonnes of beef was imported at reduced MFN rates during 2016. Except for 
the month of January and the period 13 September to 21 November, when the ordinary MFN rate applied, the 
import duty varied between NKr 18.50 and NKr 24.50 per kg.  
25 Individual tariff reductions are typically granted for specialties that, due to their distinct taste or use, 
are seen as supplements to, rather than substitutes for, domestic agricultural production.  
26 Unlike most of Norway's TRQs, which are auctioned, 4,5 00 tonnes of the EU cheese quota is not 
tendered, but allocated by the NAA to importers based on their import history. The new agreement will 
increase the EU TRQ to 8,400 tonnes, of which 5,000 tonnes are not to be auctioned.  
27 The allocations in the budg et for 2017 (Item 70.12) amounted to NKr 225.6 million for internal price 
rebates and NKr 27.1 million for export restitutions.  
28 The price data for the "agricultural component" has not been adjusted since 1994. Technical 
complexity and differing price pa ths for raw materials may lead to overcompensation or insufficient 
reimbursement of actual cost differences.  WT/TPR/S/373 • Norway  
 
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  4.22.   The general import regime for processed agricultural products is supplemented by inward 
and outward processing schemes. Annual quotas regulate the outward processing of meat and 
dairy products. The inward processing scheme allows Norwegian food industri es to optimize the 
use of their production facilities.  
4.1.1.4   Domestic support  levels  
4.1.1.4.1   WTO notifications  
4.23.   The most recent notification by Norway to the WTO on domestic support for agriculture was 
distributed on 29 November 2017 for the calendar year 2016.29 Although the general trend has 
been for increased support under the Blue and Green Boxes, most support continues to be 
provided through the Amber Box, although the range of products supported under the Amber Box 
has declined (Chart 4. 2). 
Amber Box  
4.24.   Accordi ng to the notification, in 2016, the current total Aggregate Measurement of Support 
(current total AMS) was NKr 10.9 billion (NKr 11.1 billion including de minimis  support), close to 
the average of NKr 10.5 billion for the previous ten years. However, whil e the total has been 
relatively constant, the structure of support has changed somewhat. In the mid -2000s, beef, 
sheep meat, and poultry accounted for about one third of total AMS (including de minimis ) (36% 
in 2006), but in 2016 they accounted for 4%. On the other hand, milk and pork accounted for 34% 
and 16%, respectively, in 2006, and 50% and 22%, respectively, in 2016. The current total AMS is 
close to the final bound total AMS of NKr  11,449 million and, in 2008, exceeded it slightly. The 
change in Ambe r Box support levels follows changes in policy, as the market price support policies 
for beef, and sheep meat were amended and reliance on target prices was reduced in favour of 
production limiting programmes notified under the Blue Box.  
Blue Box  
4.25.   Spending on programmes notified as Blue Box (Article 6.5) increased steadily from 2007 
(NKr 3.7 billion) to 2015, levelling off at about NKr 5.2 billion for 2015 and 2016. This reflected 
changes in policy as headage payments under production limiting programmes rep laced target 
prices and some other market price support measures for beef and sheep meat. In addition, in 
2014, the quality incentive scheme for beef was introduced.  
Green Box  
4.26.   Spending on programmes notified under Annex 2 of the Agreement on Agriculture 
(Green Box) also increased steadily from 2006 (NKr 6.2 billion) to 2014 (NKr 7.9 billion) before 
falling slightly in 2015 (NKr 7.6 billion) and 2016 (NKr 7.7 billion). The main cause for the rise in 
the total was increased spending on environmental programmes which included both national and 
regional environmental programmes.  
                                                
29 WTO document G/AG/N/NOR/94, 29 November 2017.  WT/TPR/S/373 • Norway  
 
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  Chart 4.2 Domestic support notifications, 2006 -16 
NKr million  
 
Source:  WTO Secretariat based on WTO notifications.  
4.1.1.4.2   OECD  monitorin g and evaluation of agricultural policies  
4.27.   Compared to the methodology used to calculate the level of support provided under the 
Amber, Blue, and Green Boxes in the WTO, the OECD's annual monitoring and evaluation reports 
on agricultural policies in OECD co untries use a different methodology to calculate the value of 
support which is expressed in a number of indicators, including: the Producer Support Estimate 
02,0004,0006,0008,00010,00012,00014,000Green, Blue, and Amber Boxes
Green Box
Current total AMSBlue Box
de minimis total
02,0004,0006,0008,00010,00012,00014,000Amber Box, including de minimis
Milk
Pork
Wheat
BarleyOats
Beef
Sheep
PoultryOther
02,0004,0006,0008,00010,00012,00014,000Blue Box
Yield
Meat
Quality incentive -beefMilk
Headage
02,0004,0006,0008,00010,00012,00014,000Green Box
Vacation, replacement scheme
Environmental programmes
Structural adjustment through investment aids
Research
Inspection services
OtherChart 4.[domestic support] Domestic support notifications, 2005 -16
(NKr million)
WTO Secretariat based on WTO notifications. Source:WT/TPR/S/373 • Norway  
 
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  (PSE) for gross transfers from consumers and tax payers to agricultural producers; the Total 
Suppor t Estimate (TSE) for transfers to the agricultural sector in general; and the Single 
Commodity Transfers (SCT) for transfers to specific commodities  (Table 4.5) . As previously noted, 
the PSE represents the value of transfers to producers, unlike support un der the Amber, Blue and 
Green Boxes which measure compliance with WTO commitments. Therefore, the value of support 
as notified to the WTO is neither compatible nor comparable with the values calculated by the 
OECD.30 
Table 4.5 OECD indicators for support to agriculture in Norway, 2009 -16 
NKr million (except producer NPC)  
 2009  2010  2011  2012  2013  2014  2015  2016  
Total          
 Value of production  22,981  23,894  24,230  25,974  26,682  28,453  30,260  29,716  
 TSE 22,662  23,480  23,167  26,492  24,581  26,955  28,422  28,261  
 PSE 21,045  21,777  21,628  24,776  22,792  25,017  26,361  26,279  
 SCT 11,460  11,862  11,522  14,275  12,172  14,300  15,620  15,837  
 MPS 8,875  9,176  8,758  11,363  9,142  11,124  12,352  12,455  
 Producer NPC  1.9 1.9 1.7 1.7 1.7 1.8 1.9 2.0 
Milk         
 Value of production  6,018  6,197  6,206  6,671  6,878  7,111  7,413  7,456  
 SCT 3,553  3,422  3,609  4,795  3,609  4,498  5,632  4,963  
 MPS 2,064  1,751  1,896  2,903  1,680  2,545  3,684  3,047  
 Producer NPC  1.80 1.61 1.60 1.98 1.47 1.76 2.28 1.94 
Beef         
 Value of production  3,392  3,372  3,416  3,515  3,990  3,869  4,033  4,182  
 SCT 1,827  1,917  2,003  2,074  2,102  2,277  2,112  2,493  
 MPS 1,414  1,496  1,568  1,656  1,654  1,775  1,596  1,845  
 Producer  NPC 2.07 2.14 2.16 2.20 1.98 2.17 1.96 2.19 
Pork          
 Value of production  2,946  3,137  3,284  3,405  3,188  3,368  3,725  3,762  
 SCT 1,114  1,524  1,566  1,592  1,295  1,477  1,708  1,684  
 MPS 1,049  1,452  1,461  1,490  1,196  1,367  1,589  1,546  
 Producer NPC  1.82 2.18 2.01 1.96 1.80 1.92 1.98 1.94 
Poultry meat          
 Value of production  1,375  1,468  1,546  1,769  2,073  2,188  1,910  1,996  
 SCT 770  855  855  1,002  1,054  1,143  707  1,072  
 MPS 758  855  855  1,002  1,052  1,142  706  1,072  
 Producer NPC  2.80 2.77 2.35 2.42 2.16 2.25 1.70 2.46 
Barley          
 Value of production  945  1,081  1,028  1,219  1,234  1,300  1,250  1,243  
 SCT 583  545  361  355  563  670  597  706  
 MPS 513  473  287  278  466  583  494  613  
 Producer NPC  2.37 1.91 1.50 1.38 1.74 1.94 1.80 2.15 
Note:  TSE is the annual monetary value of all gross transfers from taxpayers and  consumers arising from 
policy measures that support agriculture, net of associated budgetary receipts, regardless of their 
objectives and impacts on farm production and income, or consumption of farm products.  
 PSE is the annual monetary value of gross transfers from consumers and taxpayers to agricultural 
producers, measured at the farm -gate level, arising from policy measures that support agriculture, 
regardless of their nature, objectives or impacts on farm production or income.  
 SCT is the annual mon etary value of gross transfers from consumers and taxpayers to agricultural 
producers, measured at the farm -gate level, arising from policy measures directly linked to the 
production of a single commodity such that the producer must produce the designated commodity in 
order to receive the transfer.  
 Market price support (MPS) is an indicator of the annual monetary value of gross transfers from 
consumers and taxpayers to agricultural producers arising from policy measures creating a gap 
between domestic prod ucer prices and reference prices of a specific agricultural commodity 
measured at the farm -gate level.  
 The Producer NPC is an indicator of the nominal rate of protection for producers measuring the ratio 
between the average price received by producers (at  farm-gate), including payments per tonne of 
current output, and the border price (measured at farm -gate level).  
Source:  OECD Producer and Consumer Support Estimates database. Viewed at: 
http://www.oecd.org/tad/agricultural -policies/producerandconsumersupportestimatesdatabase.htm . 
                                                
30 WTO document WT/TPR/S/284/Rev.2, 28 November 2013, para. 4.34.  WT/TPR/S/373 • Norway  
 
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  4.28.   At 60% of gross farm receipts, the PSE for Norway is three times the average for all OECD 
members. Having declined durin g the mid -2000s to NKr 19.1 billion in 2007, the TSE increased to 
NKr 28.4 billion in 2015, and then fell slightly  to NKr 28.3 billion in 2016, although it remains 
nearly equal to the farm gate value of production of NKr 29.7 billion. Nearly all the TSE is  
accounted for by transfers to farmers (the PSE), and nearly half the PSE arises from market price 
support measures (Chart 4. 3). For the OECD, the calculation of market price support includes the 
difference between producer prices and reference prices whic h are partly the result of tariff 
protection. This difference is also reflected in the Producer Nominal Protection Coefficient 
(Producer NPC) which averages nearly 2, meaning domestic prices are roughly twice external 
prices.  
Chart 4.3 OECD estimates of support to agriculture, 2005 -16 
NKr million  
 
Source:  OECD Producer and Consumer Support Estimates database. Viewed at: 
http://www.oecd.org/chile/producerandconsumersupportestimatesdatabase.htm . 
4.1.2   Forestry  
4.29.   Norway's forestry sector continues to contribute to the economy, employment and trade, as 
about 38% of its land area is covered by forests, the majority of which are productive forests.31 
The amount of productive forests has stayed relatively stable during the review period, decreasing 
only slightly from 3,507,000 hectares in 2012 to 3,488,000 hectares in 2016, while output has 
increased.32 According to 2016 figures, for estry products accounts for about one third of Norway's 
total agricultural exports, or 0.7% of total exports, and about 0.2% of GDP33 (see Chart 1. 3). 
Norway has capitalized on its forestry natural resource base and has a number of downstream 
industries inc luding wood products, the pulp and paper industry, and bioenergy products.  
4.30.   Norway's forests are dominated by spruce, pine, and broad -leaved trees34 leading to round 
logs and pulpwood as the major forestry products (approximately 55% for sawnwood and 45% for  
pulp). Forestry output has increased steadily over the review period and has almost reached the 
levels obtained in the peak production year, 1989 -90. The forest growing stock has increased 25% 
over the past ten years, reaching a total stock of 952 million  cubic metres in 2016, with spruce 
remaining the dominant species, although broad -leaved trees have shown the largest growth35 
(Table 4. 6). Norway's forests are mainly privately owned, about 86%, often in conjunction with 
                                                
31 Regjeringen online information.  Viewed at: https://www.regjeringen.no/en/topics/food -fisheries -and-
agriculture/skogbruk/innsikt/skogbruk/id2009516/ . 
32 Statistics Norw ay online information. Viewed at: https://www.ssb.no/en/jord -skog-jakt-og-
fiskeri/statistikker/lst . 
33 Statistics Norway online information. Viewed at: https://www.ssb.no/en/befolkning/artikler -og-
publikasjoner/_attachment/323659?_ts=15f2f92fcb8 . 
34 Includes birch, aspen, mountain ash, alder, salix species, oak, and elm, among others.  
35 Statistics Norway online information. Viewed at: https://www.ssb.no/en/jord -skog-jakt-og-
fiskeri/artikl er-og-publikasjoner/forest -stock-has-grown -25-per-cent-in-10-years . 
05,00010,00015,00020,00025,00030,00035,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Total Support Estimate Producer Support Estimate
Market Prices Support Total Value of ProductionChart 4.4 OECD estimates of support to agriculture, 2005 -16
(NKr million )
OECD Producer and Consumer Support Estimates database. Viewed at: 
http://www.oecd.org/chile/producerandconsumersupportestimatesdatabase.htm [September 2017].Source:   WT/TPR/S/373 • Norway  
 
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  agricultural holdings. Public owner ship, at all levels including at national, county, and local levels, 
accounts for about 14% of Norway's forest area.36 
4.31.   State owned Statskog SF is Norway's largest landowner. The ownership of the company is 
under the responsibility of the Ministry of Agricul ture and Food and the Ministry of Climate and the 
Environment and was initially provided a contribution from the State of NKr 1.34 billion. Pursuant 
to its statutes, it manages, operates, and develops state -owned forests with a view to producing a 
positive  return. As of 2016, it owned 5.9 million hectares, or about 20% of Norway's land area, 
including 6% of the productive forest area in the country. Statskog manages its forests on a 
commercial basis, but is also involved in wilderness management and other l and and property 
management . It promotes sustainable management and has cooperation agreements with a 
number of organizations to work together on common policies in areas such as tourism, hunting, 
fishing, etc. For the last several years, it has produced p ositive returns and generally a growing 
profit, reaching NKr 130 million in 2016. However, while forestry is important, it generates 
revenues from its other activities as well. In 2016, 29% of revenues came from forestry and 15% 
from forest protection comp ensation.  
Table 4.6 Key forestry statistics, 2012 -17 
 2012  2013  2014  2015  2016  2017a 
Productive forest area (1,000 hect.)  ..b ..b ..b ..b ..b 8,600  
Growing stock (1,000 m3) 894,131  911,712  929,393  941,659  952,104  .. 
  Spruce  387,843  396,891  407,100  412,984  417,956  .. 
  Pine 278,516  282,790  286,490  289,685  292,030  .. 
  Broad -leaved  227,772  232,031  235,804  238,989  242,117  .. 
Growing stock (annual per cent 
change)  1.9 2.0 1.9 1.3 1.1 .. 
Area re -planted (1,000 hect.)  14.7 14.8 15.8 17.2 18.6 .. 
New and rebuilt forest roadsc (no.) 920 920 874 958 959 .. 
Expenditure on forest roads 
(NKr 1,000)  173,218  178,392  186,366  243,172  267,543  .. 
Commercial roundwood removals 
(1,000 m3) 8,787  9,020  9,808  10,112  10,303  10,458  
Commercial fuelwood removals 
(1,000 m3) 3,018  2,174  1,825  2,039  1,974  .. 
Employment  6,841  6,670  6,726  6,097  5,540  .. 
Average timber price (NKr per m3) 324 305 346 339 329 347 
Revenue, forest and wood industry 
(NKr million)  27,399  26,532  27,728  29,429  30,748  .. 
Production value forest and wood 
industry (NKr million)  25,329  24,177  25,252  26,866  28,007  .. 
.. Not available.  
a Preliminary.  
b No time series for the country as a whole for the period 2012 -16. 
c Whole -year roads, summer roads, and winter roads.  
Source:  Statistics Norway online information. Viewed at: https://www.ssb.no/en/jord -skog-jakt-og-
fiskeri/statistikker/lst ; https://www.ssb.no/en/jord -skog-jakt-og-fiskeri/statistikker/skogsvei ; 
Agriculture and Forestry in Norway 2015 . Viewed at: https://www.ssb.no/en/jord -skog-jakt-og-
fiskeri/artikler -og-publikasjoner/_attachment/286656?_ts=158d4106ca0 ; Norwegian Agriculture 
Agency online information. Viewed at: 
https://www.landbruksdirektoratet.no/no/statistikk/skogbruk/tommeravvirkning ; Regjeringen online 
information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
20162017/id2515774/sec3 . 
4.1.2.1   Structure and trade  
4.32.   While the forestry sector has historically been important in terms of the economy and trade, 
it has faced a number of important structural changes in recent years, resulting in increased 
output but less contribution to the economy. In Norway, the sector ha s seen a decline in 
employment mainly due to improved efficiency through mechanization and the closure of many of 
the enterprises involved in the downstream processed wood sector due to falling demand, 
                                                
36 European Forest Institute  online information, "Forest Land Ownership Change in Norway". Viewed at: 
http:// www.bygdeforskning.no/download.php?filid=155c3393dbeef2 -. WT/TPR/S/373 • Norway  
 
- 113 - 
 
  exchange rate fluctuations, etc. In particular, Norway 's downstream industry was highly 
concentrated in the pulp and paper sector, which has been impacted by the move to digitization; it 
once exported 90% of its output  but this percentage has now significantly declined. This has, in 
turn, led to the forestry sector's lower contribution to GDP and an increase in raw material exports. 
Norway's processed wood sector has been in continual decline and its capacity has significantly 
decreased in the last 10 years.37 Output from the sawnwood sector has remained relati vely stable 
during the review period but is closely linked to construction activity. The closure of plants in the 
pulp and paper sector has also impacted the sawmilling sector, due to less availability and 
consequent higher prices. Efforts have increased t o support the development of the bioenergy 
sector but it remains small.  
4.33.   These changes have also impacted trade patterns. Norway has moved from being a net 
importer of logs to a net exporter resulting in  less value -added production in Norway. Trade in 
forestry products in the Baltic  area has changed significantly during the review period as there are 
less raw material imports from Russia and Baltic States with more value added occurring in those 
countries. Norway has adapted, and now trades more with Sweden than in the past, exporting 
more unprocessed wood products, and has developed more exports to Germany, which was not a 
market 10 years ago. The majority of Norway's exports go to Sweden and Germany.38 
4.34.   In 2015, the export value of the Forestry Industry amoun ted to NKr 10.8 billion.39 During 
the review period, there has been a general increase in t he exportation of wood and 
semi-processed wood products, except for a small decline (in both value and quantity) in 2016 for 
both rough logs and wood pulp (Table 4. 7). This slight decline can be attributed to yearly market 
fluctuations. Norway generally imports more sawnwood than it exports.  
Table 4.7 Exports of forestry products, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Value (NKr million)        
Wood fuel, chips, particles and residuesa 157.5  158.2  226.6  296.6  292.9  275.4  
Wood in the roughb 791.6  1,182.0  1,534.1  1,897.7  1,680.4  1,719.0  
Semi-processed woodc 734.4  836.4  904.8  996.1  1,145.7  1,283.2  
Wood pulpd 2,180.5  2,038.0  2,262.9  2,230.1  2,149.6  2,385.2  
Papere 3,439.8  3,066.4  3,152.5  3,408.0  3,631.2  3,639.1  
Books and printed matterf 502.8  521.7  532.3  532.6  766.0  630.9  
Quantity (million cubic metres)        
Wood fuel, chips, particles and residuesa 1.1 1.2 1.5 1.8 1.9 2.1 
Wood in the roughb 1.6 2.6 3.3 4.0 3.5 3.7 
Semi-processed woodc 0.5 0.5 0.5 0.6 0.6 0.7 
Wood pulpd 283.7  254.3  339.4  271.6  219.4  238.1  
Papere 657.3  666.1  812.8  763.7  684.3  697.4  
Books and printed matterf 12.2 12.6 15.6 13.3 11.6 8.4 
a HS 4401 and 4402.  
b HS 4403.  
c HS 4406, 4407, and 4409.  
d HS 47.  
e HS 48.  
f HS 49.  
Source:  Statistics Norway.  
4.1.2.2   Policy and developments  
4.35.   Norway's main forestry policy objectives are to create value through sustainable and 
profitable forestry operations. It also places a priority on improvement of infrastructure so as to 
                                                
37 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
2016201 7/id2515774/sec3 . 
38 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
20162017/id2515774/sec3 . 
39 Statistics Norway, " Agriculture and Forestry in Norway 2015". Viewed at: 
https://www.ssb.no/en/jord -skog-jakt-og-fiskeri/artikler -og-
publikasjoner/_att achment/286656?_ts=158d4106ca0 . WT/TPR/S/373 • Norway  
 
- 114 - 
 
  create sustainable forests; as such, Norway continues to increase planting of new forests.40 The 
expenditure on forest road more than doubled during the review period. New planting after 
harvestin g has seen significant increases in recent years, reaching a growth of 8% in 2016, and 
38% since 2012. As such, Norway has been working towards increased sustainable harvesting of 
its forests . 
4.36.   Norway has increased its emphasis on climate policy targets in the forest policy, aiming at 
increasing forest carbon stocks and the supply of environmental ly friendly raw materials from 
forests. In 2016, Norway implemented economic support schemes for new mitigation actions in the 
forest sector. The main measures are increased plant density on sites identified for regeneration, 
enhanced breeding of forest seedlings, and forest fertilization to promote forest growth.  
4.37.   As part of its policies to increase abso rption of CO 2 emissions, Norway has recently 
encouraged the use of fertilizers to promote forestry growth. In 2016, over 8,000 hectares of 
forests were fertilized through a fertilizer subsidy covering 40% of the costs.41 Other developments 
have been measure s to increase forest density by increased plant density on sites identified for 
regeneration and improving transport infrastructure for forests. The expenditure on forest roads 
more than doubled during the review period.  
4.38.   In 2013, a strategy group comprised  of forest owners, industry, and research organizations 
was formed to deliver guidance and develop policy for the forestry sector. Their output, SKOG22, 
was developed in 2015 and provides  policy direction and recommendations, also noting that the 
sector ha s the potential to quadruple in output to at least 180 NKr billion a year by 2045. There 
are many recommendations, but for the sub -category of forests, SKOG22 recommends changing 
the designation of the tax on forest income, improving active ownership by re moving the profit tax 
on the sale of forest lands, and increasing the investment to improve forest roads, rail, and loading 
docks. Another recommendation encourages economic policies that support a stable currency and 
provide an equitable operating framewo rk within the EEA and globally.  
4.39.   Norway's recent white paper on Growth in Competitive Forestry (2016 -17) incorporates the 
main findings of SKOG22 and transmits these as a government policy to the Storting.42 While it 
contains many of the same elements of SK OG22, it states commitments the Government intends 
to follow with respect to forestry, includ ing: improvements to the transport and loading capacities; 
capital for the establishment of industry; tax reform; changes to property legislation; development 
of forest resources and use as climate measures; improvements to research and education; 
promotion of the use of wood in construction and for biofuels; and international forest cooperation.  
4.40.   The Norwegian Environment Agency has, in conjunction with the Agricult ure and Food 
Agency, initiated a three -year pilot project for planting new forest areas as climate measures for 
increased absorption and reduction  of CO 2 emissions.43 Certain counties in Norway were selected 
for the pilot project during 2015 -18, and the sch eme will be evaluated in 2018. The measures 
have been financed by the Ministry of Climate and Environment.  
4.41.   In September 2014, the New York Declaration on Forests was signed by Norway and a 
number of other governments, as well as certain NGOs and private c ompanies (including some 
Norwegian companies). The non -binding political declaration aims to cut natural forest loss in half 
by 2020 and end it by 2030.44 As part of the UN Climate Summit, Norway pledged to "work with 
other consumer countries to promote nat ional commitments that encourage deforestation -free 
supply chains, including through public procurement policies, and to sustainably source 
                                                
40 Agriculture Directorate, 2016 Annual Report online information. Viewed at: 
https://www.regjeringen.no/conte ntassets/a34b107c580e48288f48c53b5f2b7dbf/arsrapport -ldir-2016.pdf . 
41 Agriculture Directorate, 2016 Annual Report online information. Viewed at: 
https://www.regjeringen.no/contentassets/a34b107c580e48288f48c53b5f2b7dbf/arsrapport -ldir-2016.pdf . 
42 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
20162017/id2515774/sec1 . 
43 Norwegian Environment Agency online information. Viewed at: 
http://www.miljodirektoratet.no/no/Tema/klima/Skog/ . 
44 UN Climate Change online information. Viewed at: http://www.un.org/climatechange/summit/wp -
content/uploads/sites/2/2014/07/New -York-Declaration -on-Forest -%E2%80%93 -Action -Statement -and-
Action -Plan.pdf . WT/TPR/S/373 • Norway  
 
- 115 - 
 
  commodities such as palm oil, soy, beef and timber."45 In 2016, Norway's Government took more 
concrete steps to commi t to zero deforestation by joining the non -binding Amsterdam 
Declarations, as one of seven European countries. In the declaration, the parties declare their 
intent to support the private sector goals of sourcing 100% sustainable palm -oil and for 
deforestat ion-free supply chains of relevant products by 2020 (see Section 4.1.2. 3 on biofuels and 
policy).  
4.42.   Norway's "Nature for Life", national biodiversity action plan (2015 -16), contains the 
Government's policy for safeguarding biodiversity in Norway.46 The white paper outlining the plan 
to the Storting identifies the main policies as: more clearly targeted nature management, climate -
resilient nature management, strengthening municipal expertise on biodiversity, safeguarding 
threatened species and habitats, long -term conservation of a representative selection of 
Norwegian nature, knowledge -based management, and adapt ation of tools and instruments to 
different ecosystems.47 The Government considers that any intensification of forestry involving an 
increase in timber h arvesting, as a result of the policies and measures for increasing value creation 
from forestry, should be combined with stronger environmental measures in forestry.  The Nature 
for Life was followed up by the White Paper on "Growth in Competitive Forestry 2016".48 In 2018, 
the Government plans to outline measures for increased care of key biotopes and more mapping 
to ensure better management of mature forests.  
4.1.2.3   Biofuels and policy  
4.43.   Norway has placed an emphasis in recent years on the development of its bioener gy sector. 
The forests in Norway are the most significant source of bioenergy through the burning of wood, 
wood chips, and pellets. Norway mainly imports liquid biofuels produced from crops such as 
rapeseed, palm oil and corn. Norway commenced a strategy o r plan for bioenergy in 2003 and, in 
2008, further developed it and proceeded with an ambitious goal of doubling the level of bioenergy 
production by 2020.49 A number of government policies support the bioenergy sector as well.  
4.44.   Policy considerations for bi oenergy in Norway are a joint effort of the Ministry of Petroleum 
and Energy, the Ministry of Agriculture  and Food, and the Ministry of Climate and the Environment. 
In 2003, Norway created a Bioenergy Program me under Innovation Norway to support the 
development of small -scale bioenergy supply. The Program me has so far supported the 
establishment of nearly 2,000 bioenergy heating facilities capable of producing 384 GWh. In 2017, 
the Program me's budget amounted to  NKr 67 million.50 At the same time, the Ministry of 
Petroleum and Energy's Enova finances larger scale projects, such as district heating.  
4.45.   Government policies on a number of fronts have served to increase demand for biofuels. 
The Government has put forwar d a ban on the use of fossil oil for heating of buildings from 2020. 
The regulation has been through an ESA -notification pro cess in accordance with the 
EEA-agreement, and the regulation will now be officially adopted in domestic legislation. The ban 
covers  the use of oil for both main heating  (base load) and additional heating (peak load), in 
residential buildings, public buildings and commercial buildings. Biofuels are one of several 
alternative non -fossil sources of heating in buildings. Norway promotes t he use of biofuels in 
transport through a biofuels quota obligation. From October 2015, biofuels sold above the quota 
                                                
45 Rainforest Foundation Norway online information. Viewed at: 
http://www.regnskog.no/en/news/norwegian -state-commits -to-zero-deforestation -1. 
46 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/dokumenter/meld. -st.-14-
20152016/id2468099/sec1 . 
47 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/902deab2906342dd823906d06ed05db2/en -
gb/pdfs/stm201520160014000engpdfs.pdf . 
48 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/ddf3f9c3c3644672baa26d5d46daf543/no/pdfs/stm2016201700060
00dddpdfs.pdf .  
49 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/strategi -for-
okt-utbygging -av-bioenergi/id505401/?q=bioenergi . 
50 Regjeringen online information. V iewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
20162017/id2515774/sec6#KAP5 -5. WT/TPR/S/373 • Norway  
 
- 116 - 
 
  obligation are not covered by the road usage tax.51 Exemption from tax on CO 2 and road tax 
implies an incentive for biofuels of about NKr 2 ,000 per tonne CO 2. 
4.46.   The fuel distributors are obliged to sell a certain share of biofuels in their total annual sale of 
fuels. In 2015, the quota obligation  was increased from 3.5% to 5.5%, and, in January 2017, new 
rules came into force to further increas e it from 5.5% to 7%.52 From October 2017, the quota 
obligation was further increased to 8%, and from January 2018 to 10%. There have also been 
requirements to increase the use of advanced biofuels (those based on waste and sustainable 
sources and not on fo od crops). Advanced biofuels are double counted within the quota obligation. 
From 2017 , Norway introduced an advanced biofuels quota obligation of 1.5%, which was 
increased to 2.5% from October 2017 and to 3.5 % from January 2018.53 Thus, Norway is 
encourag ing the production of liquid biofuels for road, air, and marine transport from sustainable 
forest raw materials.  
4.47.   In 2016 -17, the parliament (Storting) approved a number of decisions impacting the 
Norwegian biofuels sector. Four resolutions were passed con cerning: application of the European 
Union's sustainability requirements for all biofuels sold in Norway, industry agreement on the sale 
of palm -free biofuels, review of fees and regulations to promote advanced sustainable biofuels, 
and a formal request th at the Government take measures to legally prohibit public procurement of 
palm oil -based biofuels by amending the Public Procurement Regulations Act.  
4.48.   To follow up these decisions , the Ministry of Climate and Environment contacted the EFTA 
surveillance aut hority (ESA) to consider the possibility of making the EU sustainability criteria 
applicable for all biofuels. The Ministry is now evaluating the possibility of national legislation in 
this area in light of the input from ESA. The Ministry has also issued a public tender for an expert 
judicial consideration of, amongst other things, whether and how the Government can implement 
the parliamentary decision taking into account Norway's international legal commitments. Before 
any possible adoption of a regulatio n banning the public procurement of palm oil -based biofuels, 
the Government will evaluate the legal basis of such a regulation. Depending on the result of this 
evaluation, a regulation would also need to be subject to public consultation before any eventua l 
adoption.  
4.1.2.4   Legal  framework  
4.49.   The main legal acts governing the forestry sector in Norway are the Forestry Act, the Land 
Act and the Concession Act. The Forestry Act mainly concern s forest management. The Land Act 
specifies among other things that agricultur al land including forest land cannot be divided without 
permission from the local community. The Concession Act specifies that acquisition of agricultural 
land depend s on a concession. Amendments to the Concession Act came into force on 1 July 2017, 
removi ng among other  things the price control for acquisition of forestry properties.54 The Nature 
Diversity Act is concerned with preservation aspects and principles and measures for sustainable 
use, species and habitat management, alien organisms and access to genetic material. A number 
of regulations associated with these acts form the main legal framework for the forestry sector in 
Norway (Table 4. 8). Parts of the legal framework have undergone revision since the last review.  
                                                
51 Documents for the public consultation of the possible changes in the product regulation: 
https://www.regjeringen.no/no/dokumenter/horing -av-endringer -i-produktforskriften/id2564514/ .  
52 Regjeringen onl ine information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-6-
20162017/id2515774/sec6#KAP5 -5. 
53 Norwegian product regulation. Viewed  at: https://lovdata.no/dokument/SF/forskrift/2004 -06-01-
922?q=produktforskriften .  
54 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/aktuelt/nytt -rundskriv -m-
3-om-konsesjon -priskontroll -og-boplikt -nytt-rundskriv -m-22017 -om-driveplikt -etter-jordloven -og-forskrift -om-
belopsgrense -ved-gjennomforing -av-priskontroll/id2569005/ . WT/TPR/S/373 • Norway  
 
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  Table 4.8 Main forestry laws and regulations, 2017  
Title Date  Reference  Overview  Recent amendments  
Acts:  
Forestry Act  1/1/2006  27/5/2005 
No. 31 To promote sustainable 
management of forest resources 
in Norway  28/3/2014 No. 9  
Concession Act  1/1/2004  28/11/2003  Controls acquisition of land, 
including  forest property  21/6/2017 No. 99  
Land Act  1/7/1995  12/5/1995  Governing the use of land 
resources  21/6/2017 No. 99 and 
No. 829, and 16/6/2017 
No. 74  
Nature 
Diversity Act  19/6/2009  19/06/2009 
No. 100, 
Section 28, 
Section 30 and 
Section 31  Aims to preserve the biological, 
landscape, geological diversity 
and ecological processes through 
conservation and sustainable use   
Regulations:  
Regulation on 
Subsidies for 
Industrial and 
Environmental 
Measures in 
Forestry  5/3/2004  4/2/2004 
No. 447 Subsidies to forest owners for 
environmental measures, forest 
culture, road construction, 
bioenergy, removal by cable car 
or horse  28/5/2015 No. 551, on 
provisions for road 
construction  
Regulation on 
Sustainable 
Forestry  1/7/2006  7/6/2006 
No. 593 To promote sustainable forestry 
pursuant to provisions in the 
Forestry Act  1/10/2015 No. 1155  
Regulation on 
the release of 
foreign species 
for forestry 
purposes  1/7/2012  25/5/2012 
No. 460 Release of foreign trees for 
forestry purposes in Norwegian 
territory requires permission and 
an application to the Directorate 
of the Environment or the county 
governor (if applicable)  15/3/2013 No. 284  
Regulation on 
the Forest Fund  1/9/2006  3/7/2006 
No. 881 For financing sustainabl e forest 
management through the 
compulsory fund  3/3/2014 No. 246 and 
2/9/2014 No. 1144  
Regulation on 
trade of timber 
and wood 
products 
originating 
outside Norway  05/1/2015  24/4/2015 
No. 406 Implementing Regulation (EU) 
No. 995/2010, Regulation (EU) 
No. 607/2012, and Regulation 
(EU) No. 363/2012   
Regulation on 
alien organisms  1/1/2016  19/06/2015 
No. 716 Regulation to prevent the 
introduction or spread of alien 
organisms through prohibition of 
importation or authorization 
through import licensing  11/05/2017 No. 566  
Regulation on 
forest seeds 
and forest 
plants  1/3/1996  1/3/1996 
No. 291 Regulation to ensure that good 
quality seed and plants are used 
to rejuvenate forests, and to 
ensure genetic diversity   
Regulation on 
planning and 
approval of 
agricultural 
roads  1/7/2015  28/5/2015 No. 
550 Provides for the application and 
procedures for planning forest 
roads pursuant to the Forestry 
Act 1/10/2015 No. 1156  
Regulations on 
forest 
management 
for Oslo and 
nearby 
municipalities  1/6/1993  2/4/1993 
No. 268 Provides planning and general 
forest management provisions for 
this area   
Regulation on 
subsidies for 
forestry 
planning for 
sustainable 
forestry  4/2/2004  4/2/2004 
No. 449 For subsidies to promote 
sustainable forestry in the short 
and long term  3/9/2014 No. 1144  
Source:  Lovdata online information. Viewed at: https://lovdata.no/ . WT/TPR/S/373 • Norway  
 
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  4.50.   As part of its obligations under the EEA, Norway implemented the European Union's Timber 
Regulation on 1 May 2015.55 The Regulation re cognizes the growing demand for timber and timber 
products and addresses  the greater concerns that have been raised with respect to illegal logging 
and the associated trade of these goods. To combat the illegal logging and trade of goods, the 
Regulation pr ohibits placing illegally harvested timber products on the EEA market. The Norwegian 
Agriculture Agency is responsible for the certification process for wood and wood products 
originating in Norway, and the Norwegian Environment Agency for rules on the tra de in imported 
wood and wood products.  
4.51.   The regulation on Alien Organisms of June 2015 was enacted to prevent the introduction 
and spread of alien organisms that could harm the environment. As a result of this regulation, 
certain species, including several  tree species, are outright prohibited from importation or may be 
imported under licen ce after approval of the application (see Section  3.1.5). As the use of invasive 
alien trees, including Christmas trees, could have an adverse impact on biological diversity, they 
require a permit granted by the local authorities and these are generally granted for the purpose 
of Christmas tree productio n. The Regulation on Subsidies for Industrial and Environmental 
Measures in Forestry was amended in 2015 to simplify the provisions on subsidies for forestry 
roads.56  
4.52.   In 2016, the Storting set a new target to set aside 10% of forest lands for protection. A  
date for reaching this target  is not specified.  At present, 4% of forest lands are protected as 
nature reserves.  
4.1.2.5   Funding, support, and subsidies  
4.53.   During the review period, Norway continued to support the forestry sector through a 
number of subsidies, funds  or grants, and private initiatives, with the general level of support for 
infrastructure to the sector increasing overall. In 2016, the Government supported the forestry 
sector with a number of different programmes, either directly to the sector  or as par t of climate 
control measures, with a number  of these  schemes being newly established in 2016 (Table 4. 9). 
Norway's most recent notification of subsidies to the WTO has indicated there are five subsidy 
measures for the forestry sector amounting to approxim ately NKr 388 million in 2016.57 These 
include: the Forest Trust Fund Scheme, the Timber Account, Subsidies for Forest Management 
Planning, Subsidies for Industrial and Environmental Purposes in Forestry, and Subsides for Forest 
Infrastructure. 58 In additio n, there are private initiatives and funds applied more generally to all 
industries that support the sector.  
4.54.   A significant amount of the monies granted in recent years, NKr 171 million, ha s gone to 
improv ing infrastructure for forestry, i.e. for the constr uction or improvement of forest roads and 
loading platforms .59 The Forest Fund, through which  forest owners offset parts of the revenues 
from timber sale in order to secure funds for long -term investments in forestry, did provide tax 
relief of NKr  125 milli on in 2016. There have been a few improvements to the Forest Fund during 
the review period to improve efficiency, such as changes to accounting rules and procedures and 
enhanced control mechanisms.  
4.55.   Many of the recently added subsidies have been aimed at co mbatting climate change; while 
these remain  relatively small, they were often higher than expected , i.e. in 2016, 8,000 hectares 
were fertilized compared to a level of 300 -500 hectares before the measure was implemented.  
                                                
55 Regulation (EU) No. 995/2010 of the European Parliament and of the Council of 20 Octo ber 2010 
laying down the obligations of operators who place timber and timber products on the market, EU online 
information viewed at: http://eur -lex.europa.eu/legal -content/EN/TXT/?uri=CELEX%3A32010R0995 . 
Regjeringen online information. Viewed at: https://www.regjeringen.no/en/aktuelt/norway -will-implement -eu-
timber -regulation/id2406924/ . 
56 Lovdata online information. Viewed at: https://lovdata.no/dokument/SF/forskrift/2004 -02-04-447. 
57 Total of four of the measures in 2016; the other one is a ta x scheme.  
58 WTO document G/SCM/N/315/NOR.  
59 Agriculture Directorate, 2016 Annual Report online information. Viewed at: 
https://www.regjeringe n.no/contentassets/a34b107c580e48288f48c53b5f2b7dbf/arsrapport -ldir-2016.pdf . WT/TPR/S/373 • Norway  
 
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  Table 4.9 Overview of support to the sector, 2012 -17 
Fund/scheme  Overview  Financing  Reference  
Forest Fund Scheme  Forest Fund  To ensure the 
financing of 
sustainable forest 
management  In 2016, NKr 489 million 
was credited and 
NKr 391 million  was 
debited to the Fore st Trust 
Fund, resulting in 
NKr 1.545 billion as a 
balance to the fund. 
Assuming that a forest 
landowner on average has 
a tax rate of about 40%, a 
tax relief on 85% of the 
major part of the debited 
amount can be compared 
to a grant of 
NKr 125 million in 2016.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/skogfond/om
-skogfond  
 Grants from 
the interest 
earned in the 
Forest Fund The interest 
earned on the 
Fund can be used 
as subsidies for 
planning, providing 
information, and 
promoting 
development  In 2017, up to 
NKr 3 million may have 
been provided as 
subsidies. Seven projects 
were awarded subsidies 
totalling NKr  2.98 million.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/prosjektmidl
er-og-
forskning/tilskudd -
fra-rentemidler   
Forest Activity Fund  Increase research 
and development 
measures to 
increase 
profitability and 
better manage 
forests  1 NKr for each cubic metre 
sold from forest owners.  
In 2016, 25 projects were 
granted support totalling 
NKr 11.4 million, mainly to 
forest owners' 
cooperat ions. http://www.skogtil
taksfondet.no/arti
kkel.cfm?id_art=2  
Forest Research and 
Development Fund   Promotes research 
and development 
issues mainly, but 
also for 
information and 
training in forestry  NKr 3.99 million was 
allocated in 2016.  https://www.landb
ruksdirektoratet.n
o/no/ eiendom -og-
skog/prosjektmidl
er-og-
forskning/utvikling
sfondet -for-
skogbruk#soekna
dsfrister -og-
regelverk   
Subsidies for 
industrial and 
environmental 
purposes in forestry  Construction 
and 
reconstruction 
of forest roads  To subsidize the 
construction or 
recons truction of 
forest roads  In 2016, NKr 94.4 million 
was paid out.   https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#nybygging -og-
ombygging -av-
skogsveier   
 Forest quality 
development  Regeneration, 
silvicultural 
activities, thinning, 
pruning, soil 
scarification  72.3 million 2016.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#skogkulturarbeid
-og-
kvalitetsutvikling   
 For cable 
logging and 
horse 
transport  Grants for forestry 
operations by 
horse or cable 
extraction systems  In 2016, NKr 14.3 million 
was paid out.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#skogsdrift -med-
taubane --hest-o-
a-  WT/TPR/S/373 • Norway  
 
- 120 - 
 
  Fund/scheme  Overview  Financing  Reference  
 Environmental 
measures in 
forestry  Subsidies to offset 
the cost of 
environmental 
measures, 
economic losses 
from conservation 
measures, etc.  In 2016, NKr 1.3 million 
was paid.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#miljoetiltak -for-
aa-ivareta -og-
videreutvikle -
miljoeverdier   
 Subsidies for 
the 
development 
of forestr y in a 
municipality or 
region  For the 
development of 
forests  In 2016, NKr 3.4 million 
was paid.  https:// www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#andre -tiltak--og-
prosjekt -for-aa-
utvikle -skogbruket   
Subsidies for Forest 
Management 
Planning   For the 
preparation of 
forestry plans, 
registration of 
forestry and 
environmental 
information  In 2016, NKr 25 million 
was paid out.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#skogbruksplanle
gging -med-
miljoeregistrering   
Subsidies for forest 
infrastructure  For forest 
terminals and 
loading docks  For the 
construction or 
reconstruction of 
forest terminal and 
loading docks  The 2017 budget provides 
NKr 46 million in gr ants.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/om -
skogbruk/tilskudd
#toemmerkaier -
og--terminaler   
Climate measures  Fertilization of 
forest stands 
as a climate 
measure  For fertilization in 
order to increase 
production and 
growth  Up to 40% of the cost of 
fertilization can be 
subsidized.  
In 2016, NKr 10.9 million 
was paid.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/skog -og-
klima/gjodsling -
som-klimatiltak   
 Increased 
seedling 
density as a 
climate 
measure  To increase the 
number of plants 
when re -planting  Up to 80% of the cost of 
the re -planting.  
In 2016, NKr 11.7 million 
was paid.  https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/skog -og-
klima/tettere -
planting#tilskudd -
ved-nyplanting   
 Planting on 
new areas as 
a climate 
measure  A three -year pilot 
project for 
Rogaland, Nord -
Trøndelag and 
Nordland  .. https://www.landb
ruksdirektoratet.n
o/no/eiendom -og-
skog/skog -og-
klima/planting -for-
klima   
Innovative use of 
wooda  To increase the 
use of wood in 
manufacturing  .. http://www.innov
asjonnorge.no/no/
finansiering/trebas
ert-
innovasjonsprogra
m/  
.. Not available.  
a Terminated in 2016.  
Source:  Various sources as specified in the table.  
4.1.2.6   International  cooperation  
4.56.   Norway participates in a number of international agreements or initiatives in the forestry 
sector in order to promote sustainable forests, combat climate change, or prevent deforestation. WT/TPR/S/373 • Norway  
 
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  Norway participates in the UN Forum  on Forests (UNFF) since 2000, working towards international 
cooperation on sustainable forests worldwide.60  
4.57.   Norway cooperates with other countries in Europe to coordinate forestry policies through 
FOREST EUROPE. This process has laid the basis for the def inition of sustainable forest 
management which is now utilized in Europe and is developing different tools for  implement ation. 
Norway has been an active member of and contributor to FOREST EUROPE and held the 
chairmanship of the process between 2008 and 2012. This organization is involved in areas such 
as sustainable forest management, designing certification schemes, and develo ping guidelines for 
national forest programmes.  
4.58.   Norway is contributing to the work of the European Forest Institute, by supporting its multi -
donor trust fund for the EFI Policy Support Facility. The EFI Policy Support Facility aims at 
facilitating better understanding of research on forest -related issues as a basis for policy 
development.  
4.59.   Norway's International Climate and Forest Initiative (NICFI) was established in 2008 in 
conjunction with an intention to allocate up to NKr 3 billion annually to efforts  reducing emissions 
from deforestation and forest degradation in developing countries (REDD+). NICFI has three 
objectives, which are: 1) to ensure that the United Nations Framework Convention on Climate 
Change (UNFCCC) is an effective tool for reducing emi ssion; 2) to contribute to early actions for 
measurable emission reductions from deforestation and forest degradation; and 3) to promote the 
conservation of primary forests, due to their particular importance as carbon stores and for their 
biological diver sity. The goals should be achieved while also promoting sustainable development 
and a reduction of poverty.61 So far, Norway has contributed NKr 19.5 billion through NICFI, with 
the majority of the funding so far going to Brazil through the Amazon Fund, all ocated on the basis 
of the annual results Brazil obtains according to an agreed reference level. Other partner countries 
with whom NICFI cooperates on a results -based basis include Guyana, Indonesia , Liberia, 
Colombia and Peru.62 In addition, Norwegian REDD + funding has helped establish and run 
programmes in the World Bank and the UN, including the multi -donor regional Central African 
Forest Initiative, supporting national strategies for reducing deforestation.63 
4.1.3   Fisheries   
4.1.3.1   Overview  
4.60.   As the world's second larg est fish exporter, Norway has continued to promote and sustain 
its fisheries sector for many years. Fishing has a long tradition in Norwegian culture, economy, and 
trade. Along the Norwegian coast, fishing is even more important, providing a livelihood and  
employment to many in more rural areas. The fisheries sector remains one of Norway's important 
industry sectors in terms of employment and GDP output, and it is also very important for exports, 
accounting for 12% of 2016 exports or nearly all of Norway's food exports (see Section 1).  
4.61.   The long -term success of the sector can be attributed to historic fishing rights in some of 
the world's richest fishing grounds, i.e. North Sea, Barents Sea, polar regions, and Norway's 
coastal waters; and the more recent expa nsion and growth of the aquaculture sector, which 
surpasses traditional fishing in terms of value. But both sectors have not been without challenges 
as well. The fishing sector has historically  been impacted by fleet overcapacity and lower stocks 
from over  exploitation of some species resulting in lower quotas and higher conservation efforts 
while the aquaculture sector has aimed to manage the particular challenges in the industry which 
include environmental and health issues, through the establishment of a  framework for sustainable 
                                                
60 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/topics/food -fisheries -and-
agriculture/skogbruk/innsikt/internasjonal -skogpolitikk/id2001110/ . 
61 https://www.norad.no/en/front/thematic -areas/climate -change -and-environment/norways -
international -climate -and-forest-initiative/ .  
62 Regjeringen online information. Viewed at: https://www.regjeringen.n o/en/topics/climate -and-
environment/climate/climate -and-forest -initiative/kos -innsikt/hvorfor -norsk -regnskogsatsing/id2076569/ . 
63 In addition to Brazil, Norway has also formed partnerships with Colombia, Congo Basin countries, 
Indonesia, Guyana, Ethiopia, Liberia, Mexico, Peru, Tanzania, and Viet  Nam. Regjeringen online information. 
Viewed at: https://w ww.regjeringen.no/en/topics/climate -and-environment/climate/climate -and-forest -
initiative/kos -innsikt/samarbeidspartnere/id2345203/ . WT/TPR/S/373 • Norway  
 
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  development. During the review period, both sectors have profited from a lower Norwegian krone 
and higher prices , which has spurred this export -oriented sector.  
4.62.   The fishing sector can be divided into commercial fishing (i.e. wild  catch) and aquaculture. 
The commercial fishing sector  is dependent on yearly quota allocations that are in turn dependent 
on the stocks and conservation policies. Most of these stocks are shared with neighbouring 
countries. There are a number of fish spec ies in Norway's wild catch sector, but the most 
significant in recent years are cod, herring and mackerel. Salmon in particular, and to a smaller 
extent trout, are the two main fish species produced in Norway's aquaculture sub -sector. There 
has also been t he development of small but growing molluscs & crustacean and seaweed sectors.  
4.63.   The traditional fishing sector has had slight declines in capacity, as reflected in the lower 
levels of registered vessels, licences, and registered fishermen due to increased p roductivity and 
use of different quota schemes (Table 4. 10). The aquaculture sector has, on the other hand, seen 
increases in production, the number of operating licences and employment. At the same , the 
losses in production have increased (Table 4. 10). The increase in losses is mainly believed to be 
due to increased mechanical treatments for sea lice as a result of resistance to medical treatment . 
Table 4.10 Key statistics on fisheries and aquaculture, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Fishing:        
Registered vessels  6,211  6,126  5,939  5,884  5,947  6,136  
Active fishing fleet  5,402  5,188  5,134  5,100  5,201  .. 
Registered fishermen  12,048  11,611  11,301  11,130  11,249  11,316  
Total catch (million tonnes)  2.14 2.09 2.31 2.33 2.07 2.40 
Total operating revenues 
(Nkr million)  8.28 8.11 7.75 9.34 10.74  .. 
Total operating profit  1.17 0.90 1.00 1.73 2.46 .. 
Total first -hand price 
(NKr million)  14.2 12.7 14.4 16.9 18.7 18.1 
Government support 
(NKr million ) 50 45 45 35 40 .. 
Aquaculture:        
Number of licences (total)  1,964  1,871  1,929  1,998  2,078  2,196  
Seawater sites  1,355  1,277  1,262  1,220  1,197  1,194  
Employment (directly)  5,893  5,985  6,274  6,872  7,825  .. 
Sale of fish (million tonne 
round weight)  1.32 1.25 1.33 1.38 1.33 .. 
Live stocka per 31 December 
(No. of fish x1000)  387,482  403,601  403,454  403,743  411,482  .. 
Loss due to escapea 
(No. of fish x1000)  172 198 273 247 144 18 
Losses in productionb (No. of 
fish x1000)  41,304  43,671  46,659  55,315  59,024  .. 
.. Not available.  
a Only salmon, rainbow trout and trout.  
b  Includes mortality, declassified, escapees, others and counting error s in salmon, rainbow trout and 
trout.  
Source:  Directorate of Fisheries online information. Viewed at: http://www.fiskeridir.no/Yrkesfiske/Statistikk -
yrkesfiske/Statistiske -publikasjoner/Noekkeltall -for-de-norske -fiskeriene  and 
https://www.fiskeridir.no/English/Aquaculture/Statistics ; and  Statistics Norway online information. 
Viewed at: https://www.ssb.no/en/jord -skog-jakt-og-fiskeri/statistikker/fiskeoppdrett .  
4.64.   A number of government organizations play key roles for the sector, including policy, 
monitoring, research , and control (Box 4.1).  WT/TPR/S/373 • Norway  
 
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  Box 4.1 Fisheries and aquaculture institutions and authorities, 2018  
Ministry of Trade, 
Industry and Fisheries  Ministry responsible for fisheries and aquaculture  www.regjeringen.no/nfd   
Directorate of Fisheries  Ministry's advisory and executive body in matters pertaining to 
fishing and the management of aquaculture. The main tasks 
involve regulation, guidance, supervision, resource 
management  www.fiskeridir.no/   
The Institute of Marine 
Research  Serves in an advisory capacity to the Ministry and performs 
key tasks in the investigation and monitoring of fish stocks and 
marine mammals, the marine and coastal environment and 
activities related to aqu aculture and sea ranching  www.imr.no/   
The National Institute 
of Nutrition and 
Seafood Research 
("NIFES")  Serves in an advisory capacity on issues concerning nutrition 
and food safety. The institute also carries out rese arch on 
nutrition and related subjects. "NIFES" has been merged with 
the Institute of Marine Research  since 2018 www.nifes.no/   
The Norwegian Food 
Safety Authority  Aims, through regulations and controls, to ensure that food is 
as safe and healthy as possible for consumers and to promote 
plant, fish and animal health.  www.mattilsynet.no   
Norwegian Coast 
Guard  Fisheries insp ection and enforcement procedures.  https://forsvaret.no/fakt
a/organisasjon/Sjoeforsv
aret/Kystvakten  
The Norwegian 
Veterinary Institute  The national biomedical research institute in the fields of 
animal health, fish health and food safety, whose primary 
function is supply of independent research based advisory 
support to the governing authorities.  www.vetinst.no/   
Source:  Information provided by the authorities.  
4.1.3.2   Production  and trade  
4.65.   During the review period, a similar trend presented itself with respect to the production and 
export of Norwegian fish; the value of production and exports has grown steadily and nearly 
doubled during the period while the quantity has declined s lightly. For many years , the 
aquaculture sector, mainly salmon, has outpaced that of traditional fishing and now accounts for 
around 70% of exports in value terms. As salmon now commands a higher price compared to most 
other fish products, its slight growt h in quantity output and larger value generated from higher 
prices has influenced the overall production and export figures during the period (Table 4.1 1, 
Chart  4.4). In fact, the export price of salmon more than doubled over the period from NKr 27.63 
to NKr 60.07, and a similar situation also occurred for trout, while prices for other fish remained 
relatively unchanged or increas ed slightly .64 In 2016, salmon accounted for 78% of production 
(value basis), and 68% of exports.65 In the traditional wild catch s ector, there was a good overall 
output during the review period despite the conservation challenges posed by certain species, in 
particular certain coastal stocks.  
Table 4.11 Norway's exports of fish, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Value (NKr billion):        
Fishing  20.5 19.3 22.5 24.4 26.2 26.8 
Aquaculture  31.6 42.1 46.2 50.1 65.4 67.7 
Total 52.1 61.5 68.7 74.5 91.6 94.5 
Quantity (1,000 tonne)a:       
Fishing  1,473  1,456  1,631  1,548  1,405  1,576  
Aquaculture  1,059  1,017  1,051  1,090  1,049  1,049  
Total 2,531  2,473  2,682  2,637  2,455  2,625  
a On a product weight basis.  
Source:  Norwegian Seafood Council online information. Viewed at: 
https://seafood.no/markedsinnsikt/nokkeltall/ .  
                                                
64 Norwegian Seafood Council online information. Viewed at: 
https://seafood.no/markedsinnsikt/nokkeltall/ . 
65 Norwegian Seafood Council online information. Viewed at: 
https://seafood.no/markedsinnsikt/nokkeltall/ . WT/TPR/S/373 • Norway  
 
- 124 - 
 
  Chart 4.4 Fisheries productiona, 2012 and 2016  
 
a Production volume is on a "whole fish equivalent" weight basis. Value is on a landed value basis.  
Source:  Statistics Norway. Viewed at: https://www.ssb.no/en/sok?sok=fish . 
4.66.   Norway typically exports the majority of its production of fish. In terms of export markets, 
the majority of Norway's fish is destined for EU markets, which accounted for almost two thirds 
(64%) of Norway's  2017 exports (value).66 The main EU markets were Poland, France, Denmark , 
and the UK. After the European Union, the next largest markets  are Asia (20%) followed by 
North  America (7%). Acco rding to the authorities, the termination of the salmon anti -dumping 
                                                
66 Norwegian Seafood Council online informat ion. Viewed at: 
https://seafood.azureedge.net/48e23b/contentassets/170cd26752df41a39268e275a03be638/norsk -
sjoma teksport -2016-presentasjon -no.pdf .  
Chart 1.[NOR] Fisheries -Production -REV
2012 2016
By value
Aquaculture
67.9%Aquaculture
77.4%Salmon 
72.7%Other 
aquaculture 
0.3%
Catches
22.6%Mackerel
2.9%Cod 7.8%
Other catches
8.8%Herring 3.0%Rainbow trout
4.5%
Total:  NKr 44.2 billion Total:  NKr 82.7 billion  
Total:   3.5 million tonnes Total:  3.4 million tonnes
Source :  Statistics Norway.  Viewed at:  https://www.ssb.no/en/sok?sok=fish [January 2018].Salmon 63.2%Other 
aquaculture 
0.9%
Catches
32.1%Mackerel
2.9%Cod 8.7%
Other catches
12.5%Herring 8.0%Rainbow trout
3.8%
Aquaculture
38.2%Salmon 35.6%Other 
aquaculture 
2.6%
Catches
61.8%
Atlantic mackerel
5.1%Cod 10.3%
Other catches
25.3%Herring 17.6%
Blue whiting 
3.4%Aquaculture
39.1%Salmon 36.4%Other 
aquaculture 
2.7%
Catches
60.9%
Atlantic mackerel
6.2%Cod 12.2%
Other catches
23.0%Herring 10.4%
Blue whiting 
9.2%By volume
Based on landed value. Note:WT/TPR/S/373 • Norway  
 
- 125 - 
 
  measure by the United States in 2012 contributed to again making the US market more attractive 
for Norwegian salmon exporters  and in 2014 there was a diversion of approximately 
300,000  tonnes of Norwegian seafood exports from traditional markets due to certain restrictions.  
4.1.3.3   Fisheries and aquaculture  policies  
4.67.   Norway's policies for the fishing  sector have stressed the importance of sustainability. The 
importance of environmental sustainability and sustainability of the fish stocks is imperative for 
long-term viability, profitability and value creation for the sector. The Government has been 
promoting the growth of the aquaculture sub -sector.  
4.68.   In 2013, a Seafood Industry Committee was appointed by royal decree to examine the 
competitiveness and other important factors impacting Norway's seafood sector and policies.67 
Following their work, a number of recommendations  were made, such as freer choice of fishing 
equipment, activity requirements in the Participation Act, better use of residual materials and less 
waste, etc. The Government followed up the work of the Seafood Industry Committee in a White 
Paper presented to the Norwegian Parliament in 2015.68 Certain recommendations of the 
Committee were taken on board in the White Paper while others were not. The Parliament debate 
on the White Paper took place in 2016.  
4.69.   The Government has put particular emph asis on the aquaculture sector in recent years as it 
has experienced significant growth. Thus, there has been a priority placed on aquaculture 
management as demonstrated  through a proposal to the Storting in March 2015 on measures 
concerning salmon and tro ut aquaculture. It includes a new system for regulating the growth of 
the salmon farming sector with a particular emphasis on environmental issues.69 This proposal 
stresses that the environmental impact should be the most important criterion when deciding h ow 
the salmon farming industry can operate and its production levels. The new system was 
implemented in October 2017. The Government plan s to review the production capacity of the 
sector in each of the 13 production areas every second year with the first r eview taking place in 
2017/2018. If the capacity is adjusted it is adjusted by 6%. So far , the industry has been offered 
an increase in production capacity of 2% on existing licences in 8 of 13 production areas. The offer 
ends 31 January 2018. During the s pring of 2018, the Government plans to allocate the last 4% 
through the allocation of new licences in the same eight production areas.  
4.70.   In its international work, Norway has actively engaged in the WTO negotiations to prohibit 
fisheries subsidies. Norway ha s also had a key role in the conclusion of  work on  the Agreement on 
Port State Measures  to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing 
under the Food and Agriculture Organization of the UN (FAO). The agreement entered into forc e on 
5 June 2016 for Norway and the other signatories. In the FAO, Norway has also participated in the 
development of voluntary Global Guidelines for Catch Documentation Schemes as part of the work 
to prevent illegal fish from enter ing into markets and int ernational trade. Norway also has an 
agreement with the European Union to implement certain provisions related to the issuing of catch 
certificates for imports into the European Union following the EU Regulation to prevent, deter and 
eliminate illegal, unr eported and unregulated fishing (IUU). While fisheries management is not part 
of the EEA Agreement, Norway has traditionally had cooperation with the European Union on the 
management of certain fish stocks.70 In addition, Norway has fully implemented the EU  veterinary 
acquis under the EEA, which is important for the management of aquaculture.  
4.1.3.4   Legal  framework  
4.71.   There have been a number of developments during the period that have impacted the legal 
framework (Table 4.1 2). Most importantly , a new Act concerning  first-hand sales of wild living 
                                                
67 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-10-
20152016/id2461010/sec1?q=Gjennomf%C3%B8ring%20av%20r%C3%A5fisklova%20og%20fiskeeksportlova
%202017#KAP1 -1.  
68 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-10-
20152016/id2461010/sec1 .  
69 Regjeringen online information. Viewed at: https://www.regjeringen.no/en/dokumenter/norwegian -
salmon -farming/id2461650/ .  
70 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/contentassets/902deab2906342dd823906d06ed05db2/en -
gb/pdfs/stm201520160014000engpdfs.pdf .  WT/TPR/S/373 • Norway  
 
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  marine resources  (Fish Sales Organi zations Act) was implemented in 2014 , which  made a number 
of changes from the previous 1951 Act.71 The most significant change provides further clarity on 
the first -hand sale of marine resou rces by providing procedures for fixing minimum prices and a 
mediation process for these prices.72 Groups or organizations of fishermen, as well as cooperatives 
and similar organizations are responsible for the first sale of wild marine resources; in partic ular 
they are responsible for fixing the price, conditions of sale, and fixing minimum prices.73 If there is 
no agreement through negotiation and the parties do not agree on minimum prices, the matter 
shall be submitted to mediation. These changes were intr oduced to make the process more 
dynamic and better reflect market conditions.  
Table 4.12 Main laws and regulations, fisheries and aquaculture, 2017  
Title What it regulates  Reference  
Acts regulating fisheries:    
The Marine Resources Act  Act on the management of 
wild marine resources  1 January 2009  
The Participation Act  Act on right to participate in 
fishing and catching  26 March 1999  
The Fish Sales Organ izations Act  Act concerning first -hand 
sales of wild living marine 
resources  21 June 2013  
Act on Fish Exports    
Act to Regulate Export of Fish and Fish Products   No. 9 of 27 April 1990  
Act on Economic Zones   Act No. 91 of 
17 December  1976  
Acts regulating aquaculture:    
Act on Aquaculture   No. 79 of 17 June 2005, 
No. 74 of 21 June 2013  
Animal Welfare Act   No. 97 of 19 June 2009  
Food Safety Act   No. 124 of 19 December 
2003 
Regulationsa:   
Regulation o n quality of fish and fish products   No. 844 of 28 June 2013  
Regulation on the implementation of production 
areas in Norwegian aquaculture of salmon, trout 
and rainbow trout  
 
Regulation on the allocation of increased 
production capacity in Norwegian aquaculture of 
salmon, trout and rainbow trout  Regulates the new growth 
system described in 
Section  4.11 No. 61 of 16 January 2017  
 
 
 
No. 2397 of 
20 December  2017 
Regulation on joint responsibility of escaped 
farmed fish  Regulates the farmers ' 
responsibilities regarding 
removal of escaped farmed 
fish from rivers  No. 89 of 5 February 2015  
Regulation on catch -based aquaculture   No. 1831 of 15 December 
2014 
Regulation on special requirements for 
aquaculture -related activities in or at national 
salmon rivers   No. 961 of 22 June 2009  
Regulation on operation of aquaculture facilities   No. 822 of 17 June 2008  
Regulation on production of aquaculture fishery   No. 61 of 16 January 2017  
Regulation on fees in connection with 
aquaculture activities   No. 1597 of 
21 December  2001 
a There are numerous other  fisheries regulations. Some of them permanent regulations, some yearly 
regulations, and some time -limited regulations, e.g. regulations on areas that are temporarily closed 
for fishing.  
Source:  Lovdata online information.  
4.72.   In 2016 , there was a proposal to regulate the tourist fishing sector whereby the Ministry of 
Trade, Industry, and Fisheries would be granted the authority to do this through amendments to 
                                                
71 Lovdata online information. Viewed at: https://lovdata.no/dokument/NL/lov/2013 -06-21-75.  
72 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld -st-12-
20132014/id746506/sec2?q=Gjennomf%C3%B8ring%20av%20r%C3%A5fisklova%20og%20fiskeeksportlova
#KAP2 -4. 
73 It is forbidden to sell fish at a price lower than the set minimum price.  WT/TPR/S/373 • Norway  
 
- 127 - 
 
  the Marine Resources Act.74 At present , the Act has some provisions on this m atter. The 
amendments entered into force  on 1 January 2018 together with the new regulation concerning 
tourist fishing. The regulation  states that enterprises which base their business activity on tourist 
fishing should be registered and that catches taken  by their customers should be reported to the 
Directorate of Fisheries. Also, there have been some developments on the export quotas for 
tourists as the quota for fish stemming from a registered enterprise has been increased to 20 kg 
while the export quota  for other fish has been reduced to 10 kg (see Section 3.2.3).  
4.73.   Norway has certain restrictions on the export of fish landed by foreign vessels in Norway as 
all first -hand sales are to take place through the sales organi zations. This is mandatory for both 
Norwegian and third -country vessels and is also part of the Norwegian fisheries management and 
control system.75 Special provisions allows for the transit of catches from landings by EU vessels, a 
time-limited arrangement that is currently running to 2020.  
4.74.   The amount of the fee financing the Norwegian Seafood Council was adjusted both in 2016 
and in 2017 due to the strong growth in the value of fish exports. As of 1 January 2017, the fee 
was 0.3% for salmon, trout and the most important pelagic species. For t he remaining species, the 
fee is 0.75% (see Section 3.2.2).  
4.75.   The Aquaculture Act was revised and amended in 2013. The chapter regarding reactions 
and sanctions for infringements was revised. Among several changes, a new article giving the 
supervisory author ity legal foundation to confiscate profits derived from illegal actions was 
implemented. Additionally , the environmental chapter of the Act was strengthened. A new 
regulation establishes an organization consisting of all holders of aquaculture licences. Th is 
organi zation is responsible for covering the costs of fishing out escaped aquaculture animals, 
where the responsible farmer is not identified. Further, new regulations give legal foundation to 
implement mandatory use of fish unable to reproduce and/or t agging of farmed fish.  
4.1.3.5   Fisheries and aquaculture  management  
4.76.   Norway has a long history of fisheries management based on sustainable harvesting and 
science. As such, the sector has traditionally been highly regulated through licences and quotas.76 
As many of the areas where Norway conducts fishing, about 90% , involve other countries, it 
engages in a number of regional or international initiatives on fisheries management (see 
Section  4.1.3.7) in order to maintain stocks. Allocation of quotas commences with the 
International Council for the Exploration of the Sea (ICES) where scientists give the basis for the 
quota recommendations. Thereafter, Norway embarks on its regional and international 
negotiations for quota allocations and then its domestic process, in con sultation with The Institute 
of Marine Research and domestic stakeholders, result ing in the allocation of quotas.  
4.77.   The fishing zones under Norwegian jurisdiction include the waters around the Norwegian 
mainland, Jan Mayen and Svalbard. Norway places emphas is on resource control, and the need to 
secure information on catches of fish within its juridical waters. Norway has a general ban on 
foreign fishing around its mainland and Jan Mayen zones. Foreign entities are subject to a licen ce 
in order to fish in th ese areas and are subject to additional regulations and the reporting of catch. 
The fishing zone around Svalbard does not face a similar ban although it is subject to Norwegian 
jurisdiction; as such a number of foreign entities are allowed to fish in this zone subject to quota 
or a set number of fishing days. The Directorate of Fisheries and the Norwegian Coast Guard both 
have roles in control and enforcement procedures within the jurisdiction of Norwegian waters. The 
Coast Guard is responsible for resource  control at sea while the Directorate of Fisheries is involved 
in quayside inspections, sales inspections, post -landing audits, electronic reporting and quota 
control. The fishers' sales organizations also carry out control activity upon landing, as all 
first-hand sales of wild marine resources must take place through or with the approval of a sales 
organi zation.  
                                                
74 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/prop. -119-l-
20162017/id2549577/s ec1.  
75 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/doku menter/meld -st-12-
20132014/id746506/sec2?q=Gjennomf%C3%B8ring%20av%20r%C3%A5fisklova%20og%20fiskeeksportlova
#KAP2 -4.  
76 Regjeringen online information. Viewed at: 
https://www.regjeringen.no/globalassets/upload/fkd/brosjyrer -og-veiledninger/folder.pdf .  WT/TPR/S/373 • Norway  
 
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  4.78.   Management of the aquaculture sector involves several regulations under the auspices of 
the Directorate of Fisheries, in particular for licensing,  fees, and controls (Table 4.1 2). A new 
regulatory proposal for the sector was presented to the Storting in 2015 on growth and 
environmental aspects in particular, with the new system now in place (see Section 4.1.3.3).  
4.79.   In 2015, the Government introduced,  for a test period of two years (now expired), a new 
kind of aquaculture licence (innovation licence) for the salmon sector which is a hybrid between a 
research licence and a regular commercial licence, allowing for aquaculture innovations to be 
tested on a larger commercial scale. Innovation licences are awarded to projects that potentially 
constitute significant innovation and investment by the applicant. At the end of the project, the 
innovation licence can be converted to a regular commercial licence fo r a fee of NKr 10 million.  
4.80.   Land-based aquaculture  was until recently subject to the same licensing requirements as 
traditional fish farming in sea -cages , but new regulations in June 2016 removed the fee and the 
need for renewal. New regulations regarding technical standards for land -based aquaculture 
facilities were implemented in 2017. The purpose of the regulation is to prevent aquaculture 
animals from e scaping and ensure that the aquaculture facilities maintain a proper technical 
standard.  
4.1.3.6   Support schemes  
4.81.   There have been no major changes in the Norwegian support schemes for the sector during 
the review period. However, focus has changed in support policy  from industry -specific 
programmes to general programmes where , for example , fisheries researchers now compete with 
others when applying for funds. In addition to the support schemes noted herein (Table 4.1 3), 
Norway has an export fee on fish supporting ma rketing efforts (Section 3.2.2), lower VAT rates 
(Section 3.1.4.1), and certain excise tax refunds (Section 3.1.4.2) for the sector.  
4.82.   According to figures  provided by the Directorate of Fisheries on government support for the 
fishing fleets, the amount of s upport has gradually been reduced during the review period and now 
mainly consists of less than NKr 50 million for social benefits and transport support. Earlier during 
the review period there were other programmes that have since been terminated. There ar e also a 
number of general support schemes in which fisheries and aquaculture sectors benefit as well as 
other sectors. There are a number of programmes under Innovation Norway, e.g. financing and 
loans for small and medium businesses, financing for local food experiences, and assistance for 
local food producers.  
Table 4.13 Support schemes specific to fishing and aquaculture, 2017  
Scheme  Summary  Government entity  Amount of 
support  
Guarantee scheme for 
fishermen  Ensures a minimum income for 
fishermen under certain conditions  Ministry of Trade, 
Industry, and Fisheries  NKr 1.35 million 
in 2017  
Transport support  Support for transfer of catch from 
harbour to production site  Ministry of Trade, 
Industry, and  Fisheries  NKr 35 million 
in 2017  
Sealing  Support for the sealing industry   Ministry of Trade, 
Industry and Fisheries  NKr 2.5 million 
in 2017  
Aquaculture (HAVBRUK)  Financing for aquaculture focusing 
on profitability and value creation 
in the salmon sector or the 
commercialization of new species  The Research Council 
of Norway  .. 
MABIT  Funding for increased value 
creation in fisheries and 
aquaculture  Consortium of 
government, regional, 
and private sources  NKr 8 million 
per year  
CO2 fuel tax refund  Partial Refund of the CO 2 and basic 
tax on mineral fuels for the fishing 
fleet Guarantee Fund for the 
Refund of Mineral Fuel 
Tax NKr 470 million 
in 2016  
.. Not available.  
Source:  Ministry of Trade, Industry and Fisheries.  WT/TPR/S/373 • Norway  
 
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  4.1.3.7   International and bilateral agreements  
4.83.   Norway is party to a number of agreements and annually carries out negotiations with 
international partners for the joint management of fisheries resources. There are three types of 
agreements to which  Norway is a party: bilateral agr eements, coastal state agreements, and 
regional fisheries management organizations. The overall goals for Norway partaking in such 
agreements are to provide sustainable management of marine resources, to secure Norway's 
share in the allocation, and to ensu re satisfactory control and enforcement.77 In 2017, Norway had 
five bilateral agreements, was a party to four coastal state agreements, and participated in seven 
regional fisheries management organizations (Table 4.1 4). 
Table 4.14 Overview of Norway's international agreements in fisheries, 2017  
Agreement  Overview  Details  
Bilateral:  
Norway –Russian Federation  Quotas on shared stocks; access to 
fishing in each other's waters; 
some quota exchange, joint 
research, management and control 
measures  Norway's 2017 quotas on jointly 
managed stocks in the Barents Sea 
(tonnes): cod, 378,523; haddock, 
113,564; halibut, 12,225; deepwater 
red fish, 19,600 
Norway –European Union  Quotas on shared stocks; access to 
fishing in each other's waters and 
quota exchange; joint management 
and control measures  Norway's 2017 quotas on jointly 
managed stocks in the North Sea 
(tonnes): cod 6,667; haddock 7,238; 
saithe 52,399; whiting 1,300; plaice 
9,094; herring 139,666a 
Norway –Faroe Islands  Exchange of quotas in each other's 
waters and some access to fishing 
in each other's waters; cooperation 
on control  Norway's 2017 quotas (tonnes): 
mackerel, 4,979; ling, 2,000; cusk, 
1,700; pollock, 567; other species, 
800 
Norway –Iceland  Excha nge of quotas in each other's 
waters; cooperation on control  Norway's 2017 quotas (tonnes): 
bottomfish, 500; capelin 31,165  
Norway –Greenland  Exchange of quotas in each other's 
waters; cooperation on control and 
research  Norway's 2017 quotas (tonnes): 
Greenland halibut, 900 (west 
Greenland); Greenland halibut, 400 
(east Greenland); redfish, 800; cusk, 
340; halibut, 10; other species, 150; 
cod 1,200  
Coastal state:  
Mackerel  The coastal states are Norway, 
Iceland, European Union, Faroe 
Islands and Greenland.b The 
Russian Federation is an observer  Norway's 2017 quota – 
229,821  tonnes  
Herring  The coastal States  are Norway, 
Iceland, European Union, Faroe 
Islands and the Russian Federation  Norway's 2017 quota – 
432,870  tonnes  
Blue whiting  The coastal states are  Norway, 
Iceland, European Union and the 
Faroe Islands.  The Russia n 
Federation  is an observer  Norway's 2017 quota – 
410,892  tonnes  
Deepwater red fish  The coastal states are Iceland, 
Greenland, and the Faroe Islands. 
Norway, the European Union, and 
the Russian Federation are in the 
process of participating  Norway's quota 2017 – 
21,600  tonnes  
Regional fisheries management:  
North East Atlantic Fisheries 
Commission (NEAFC)  Denmark (on behalf of the Faroe 
Islands and Greenland), the 
European Union, Iceland , Norway 
and the Russian  Federation  Rational management and control of 
marine species in the convention 
area 
Northwest Atlantic Fisheries 
Organization (NAFO)  12 parties  Contribute to long -term 
conservation, optimal exploitation 
and rational management of fishery 
resources in the convention area  
                                                
77 Regjeringen online information. Viewed at: https://www.regjeringen.no/no/dokumenter/meld. -st.-28-
20162017 .  WT/TPR/S/373 • Norway  
 
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  Agreement  Overview  Details  
South East Atlantic Fisheries 
Organisation (SEAFO)  Angola, Namibia, South Africa, 
European Union, Norway, Japan 
and South Korea  Long-term and sustainable use of 
marine resources  
Convention for the 
Conservation of Antarctic 
Marine Living Resources 
(CCAMLR)  24 parties plus the European Union  Conservation and rational 
exploitation of the living marine 
resources in Antarctica  
International Commission for 
the Conservation of Atlantic 
Tunas (ICCAT)  51 parties  Preserve a nd manage tuna and tuna -
like species in the Atlantic Ocean and 
the Mediterranean  
North Atlantic Marine Mammal 
Commission (NAMMCO)  Norway, Greenland, the Faroe 
Islands and Iceland  Cooperation on research, 
conservation and management of 
marine mammals in the North 
Atlantic  
International Whaling 
Commission (IWC)  89 parties  Conservation of whales and science -
based management of whaling  
a There are also joint management of certain stocks in certain areas.  
b In recent years not all the coastal states have j oined in a common agreement.  
Source:  Information provided by the authorities and Regjeringen online information. Viewed at: 
https://www.regjeringen.no/no/dokumenter/meld. -st.-28-20162017 . 
4.2  Mining and Energy  
4.84.   According to preliminary data published by Statistics Norway, Norway's production of 
primary energy equalled 2,428 TWh in 2016. Natural gas accounted for 49% of this output, 
followed by crude oil and oil products (44%), and el ectricity (6%). Norway's offshore petroleum 
sector is thus the dominant source of supply of energy, and about 95% of its output is exported.78 
The composition of the domestic energy balance, some 215 TWh in 2016, is much more diverse, 
and includes the consu mption of biofuels (12.6 TWh) and district heating (5.5 TWh). The energy 
intensity of the Norwegian economy has been declining. Measured per capita, the consumption of 
energy fell by 8% between 1990 and 2014. The reduction is explained by shifts in economi c output 
(towards an ever larger services economy) as well as by higher energy efficiency.  
4.85.   Unlike many other countries, Norway's domestic energy market is characterized by high 
reliance on electricity, both by power -intensive industries (metals, chemicals,  pulp and paper) as 
well as by households and businesses/public services (for interior heating, warm water, and 
lighting). The role of fossil fuels in heating, important due to the climate, has been declining. In 
June 2017, the Government  introduced a ban on the use of mineral oils in the heating of buildings, 
including residential homes, starting from 1 January 2020.79 Hydrocarbons are thus mainly used in 
the transport sector and, even there, the use of electricity is spreading. Although still mostly an 
urban phenomenon, the number of electric vehicles increased by 40% during 2016, and total 
registrations passed the 100,000 mark in early 2017. Pilot projects have been developed for the 
use of electricity in public transport, including coastal traffic. The No rwegian Water Resources and 
Energy Directorate has estimated that a complete shift to electricity in the transportation of 
passengers (including all passenger motor vehicles) would expand the domestic consumption of 
electricity by 7 TWh annually, an increa se that could be absorbed entirely within the production 
capacity of existing power stations. Based on current transportation volumes, a similar shift for all 
road transport would imply an increase in the annual consumption of electricity of 12 TWh, or 
17.5 TWh if extended to all transport sectors (except air transport).80  
4.2.1   Hydrocarbons  
4.86.   Although Norway's production of petroleum has declined by about 11% since the peak in 
2004, the output of crude oil, natural gas, natural gas liquids, and condensates is still considerable 
(Chart 4. 5). In 2016, Norway ranked 14th in the world among the crude oil producers, and it was 
the world's eighth  largest exporter of crude oil. Norway was the third largest exporter of natural 
gas in the world in 2016. Crude oil produc tion peaked in 2001 at about 3 million barrels/day. 
                                                
78 As Norway also imports crude oil and petroleum products, net exports amount to 85% of the 
production.  
79 The installation of burners and boilers based on fossil fuels in new constructions w as banned in 2016.  
80 St. Meld. 25 (2015 -2016) Kraft til endring , pages 124 and 210.  WT/TPR/S/373 • Norway  
 
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  Today, Norway produces and exports somewhat more natural gas than crude oil. However, the 
expected continued decline in oil production has been arrested by the  discovery of the large, 
oil-rich "Johan Sver drup" field in 2011. The first phase of the development of "Johan Sverdrup", 
the fifth largest discovery in Norway's petroleum history, was approved in 2015, and the field is 
expected to account for 30% of Norway's production of crude oil in 2025.81  
Chart 4.5 Norway's petroleum production, 1971 -2017  
Million Sm3 oil equivalent  
 
Source:  Norwegianpetroleum.no.  
4.87.   Although the Norwegian petroleum sector has been affected by the recent decline in oil and 
gas prices, p roduction volumes have been largely unresponsive to the price fluctuations, as the 
variable costs related to production are low relative to the investments required before production 
may commence. However, as oil companies have postponed exploration activi ties and made other 
adjustments to protect their net cash flow from falling revenues, the oil service supply industry 
and many engineering firms have been forced to adapt to sharply lower levels of activity globally, 
including on the Norwegian continental shelf. Statistics Norway estimates that the number of 
full-time jobs in Norway directly or indirectly linked to the offshore petroleum sector declined from 
232,000 in 2013 to 185,300 in 2016. A side effect of the retrenchment and tough competition on 
the supply side has been lower costs for the petroleum industry. The development of the "Johan 
Sverdrup" field was in 2015 estimated to be profitable with oil prices at, or exceeding, 
US$32/barrel. In early 2018, industry sources indicated that break -even had b een reduced to less 
than US$15/barrel for the first phase of the Johan Sverdrup project and less than US$20/barrel for 
the full -field development.82 
4.88.   Activities on the Norwegian continental shelf are governed by the Petroleum Act No. 72 of 
29 November 1996. A licensing system is applicable to all companies engaged in exploration and 
production activities (Box 4.2). Offshore production is subject to a separate tax regime, laid down 
in the Petroleum Taxation Act No. 35 of 13 June 1975. Recent reductions in the general corporate 
tax rate have been balanced by commensurate increases in the special petroleum tax to maintain 
a marginal tax rate of 78%.83 The combined stakes of the 67% state -owned Statoil ASA and 
                                                
81 Ministry of Petroleum and Energy, Prop. 114S (2014 -2015), 24 April 2015.  
82 Statoil online information. Viewed at: https://www.statoil.com/en/news/07feb2018 -johan -
sverdrup.html .  
83 For 2018, petroleum companies are subject to ordinary corporate income tax (23%), special 
petroleum tax (55%), as well as taxes on emissions of carbon dioxide and nit rogen oxides. The special tax 
05010015020025030019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017Gas NGL Condensate OilChart 4.[Energy] Norway's petroleum production, 1971 -2017
Norwegian Petroleum.  Source: (Million Sm3 oil equivalent)WT/TPR/S/373 • Norway  
 
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  Petoro AS, an entity established in 2001 to manage the direct financial interests of the Norwegian 
State in offshore fields, accounted for approximately 59% of the production volume on the 
Norwegian continental shelf in 2017. However, a total of 27 energy companies held stakes in fields 
on stream in 2017. Over  the years, the Norwegian offshore sector has seen the arrival of many 
new entrants, particularly for the development of small discoveries in mature areas.84  
Box 4.2 Licensing in the Norwegian petroleum sector  
The Petroleum Act No. 72 of 29 November 1996 stipulates that the property rights to the petroleum 
resources on the Norwegian Continental Shelf are vested in the Norwegian State. The Act also provides the 
legal basis for a licensing system that allows compan ies to engage in petroleum activities. As a starting 
point, an area on the Continental Shelf must have been formally opened for petroleum activities before any 
such activity may take place. The Ministry of Petroleum and Energy is required to carry out a st rategic 
impact assessment for the area in question, including evaluations of the possible environmental, economic, 
and social effects, before the Norwegian Parliament decides whether or not to open a new area of the 
Continental Shelf to petroleum activitie s.  
The Ministry organizes licensing rounds in open areas by first inviting existing licensees and prequalified 
companies to nominate geographically limited areas (so -called blocks) to be included in the new round. A 
public consultation procedure is also undertaken to assess, for example, environmental and fisheries -related 
aspects before the Government decides which blocks to include in the next licensing round. A production 
licence grants exclusive rights to exploration, exploration drilling, and product ion of petroleum in the 
designated block, and regulates the rights and obligations of the licensee vis -à-vis the Norwegian State. The 
Government awards the production licence for each block to a consortium of companies, one of which is 
designated operator of the joint venture. The operator is responsible for ongoing activities under the licence 
vis-à-vis the authorities and the other licensees. The licensees share the costs and revenues proportionately 
to their participating interest in each block. The lice nsing rounds are nowadays organized every two years. 
In all, 23 numbered licensing rounds have been undertaken since 1965. The 24th round is ongoing, and 
likely to be completed by mid -2018.  
In addition to the numbered rounds, annual Awards in Predefined A reas (APAs) have been organized since 
2003 in mature areas, i.e. areas where the geology is well known, the technical challenges are fewer, and 
new production units may be hooked up to existing infrastructure. The purpose is to ensure that smaller 
deposits  may be proven and recovered before the infrastructure is shut down. The Ministry decides which 
blocks to include in APAs.  
Production licenses are initially awarded for an exploration period of up to 10 years, during which the 
licensees explore the awarded  block in accordance with a committed work programme. If the exploration is 
unsuccessful, the licensees shall relinquish their licence. The block may subsequently be awarded to another 
group in a future licensing round. If a discovery is made in the initia l period, the licensees have the right to 
require an extension of the licence period upon expiry of the initial period, and subject to their submitting a 
plan for development and production of the petroleum deposit to the Ministry of Petroleum and Energy f or 
approval. About two to five years before the licensees envisage the end of petroleum production, a 
decommissioning plan must be submitted to the Ministry. The licensees are liable for all costs related to the 
permanent shutdown and disposal of the redun dant installations. The licensees are also liable for any 
pollution damage, irrespective of fault, during exploration and production.  
Source:  Online information viewed at www.norskpetroleum.no , a website operated jointly by the Norwegian 
Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate.  
4.89.   About 8,800 km of sub -sea pipelines (upstream pipeline network) for the transportation of 
produced gas to the European Continent and th e United Kingdom have been laid on the Norwegian 
continental shelf. The transportation system is mostly owned by a joint venture (Gassled), and 
operated by the wholly state -owned Gassco AS. Gas transport tariffs are governed by special 
regulations issued b y the Ministry of Petroleum and Energy, as the pipeline system is considered a 
natural monopoly with high initial costs. The purpose of the regulations is to ensure that economic 
rents are mainly ascribed to the producing fields and not extracted through t he transportation 
system.  
4.90.   Norway's export revenue from oil, gas and condensates amounted to NKr 414 billion in 
2017, i.e. just under 50% of total merchandise exports. Most of Norway's production of crude oil is 
exported to the European Union , and almost a ll the natural gas is landed in the European Union  via 
pipelines to terminals in the United Kingdom (2), Germany (2), Belgium, and France. Norway is 
                                                                                                                                                  
regime also contains a number of allowances, as outlined in WTO (2012). The regime is designed to be 
investment neutral, i.e. a project considered profitable before tax should also be profitable after tax.  
84 Companies may sel l or swap their participating shares in production licences subject to the consent of 
the Ministry of Petroleum and Energy.  WT/TPR/S/373 • Norway  
 
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  thus a major supplier of energy to the European Union , and the mutual dependence is reinforced 
through clos e cooperation both within and beyond the EEA Agreement.  
4.91.   Norway has participated in EU programmes such as Intelligent Energy Europe (IEE), the 
Competitiveness and Innovation Framework Programme (CIP), and in funded research projects 
within the Horizon 2020  framework. The many components of the European Union 's Energy Union 
(includ ing an integrated gas market ) and the European Union 's third energy package (2009) 
(including the Gas Directive85 and Regulation  715/2009 which  form the cornerstones for an 
integrat ed gas market ) have been incorporated in to the EEA Agreement.  
4.2.2   Electricity  
4.92.   Norway's production of electricity is almost entirely hydro -based, the remainder being 
thermal power, and wind power ( Chart  4.6). Norway's abundant water resources make it the 
largest hydropower producer in Europe and the seventh  most important in the world. The installed 
capacity in Norway's 1,608 power plants total approximately 33 GW, and the production amounted 
to almost 149 TWh in 2016. Although the system is weather reliant, extensive water storage 
capacity (84 TWh), equalli ng about 63% of the hydropower production in an average year, allows 
rapid adjustment to fluctuations in daily and seasonal demand.  
Chart 4.6 Norway's energy balance, 2016  
 
Source:  Statistics Norway.  
4.93.   The fle xibility and reliability of the system is also furthered by Norway's participation in a 
fully integrated market for electricity with its Nordic neighbours Sweden, Denmark and Finland 
through Nord Pool Spot – a spot market for electricity. The main volumes are traded in the day -
ahead market (Elspot), but electric power may also be bought and sold intra -day (Elbas).86 In 
addition, the Norwegian grid operator Statnett  manages the momentary flow of electricity in the 
Nordic region.87 
4.94.   Since 2008, Norway's electric ity grid has been connected with the Netherlands through a 
sub-sea cable (NorNed, capacity 700 MW). Further sub -sea connections are planned with Germany 
                                                
85 On 13 July 2009, the European Parliament and the Council adopted Directive 2009/73/EC concerning 
common rules for the internal ma rket in natural gas and Regulation (EC) No. 715/2009 on conditions for 
access to natural gas transmission networks. The new legislation repealed Directive 2003/55/EC and 
Regulation (EC) No. 1775/2005.  
86 Operators in the Baltic countries may also participa te in the two exchanges, and existing links allow 
Germany and the United Kingdom to take part in Elbas.  
87 The frequency of the electricity grid is synchronized at 50  Hz throughout Norway, Sweden, Finland 
and parts of Denmark.  
Hydropower 143.4
Production of electricityElectricity 
113.5Biofuel 12.6Waste 1.4Petroleum 
products 
69.4
Domestic energy consumptionDistinct heating 
5.5Coal and coke 7.6Natural gas 4.6Chart 4.[Energy] Norway's energy balance, 2016
Total: 149 TWhTotal: 215 TWh
Statistics Norway. Source: Wind power 2.1Thermal energy 3.4WT/TPR/S/373 • Norway  
 
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  (NordLink, capacity 1, 400 MW) and the United Kingdom (North Sea Network, also 1,400 MW). By 
2022, with these new networks completed, Norway's total capacity for electricity exchange with 
other countries will amount to 9,000 MW, in theory allowing trading of up to 80 TWh of electric 
power per year. The actual volumes traded, and the direction of the trades, will depend on the 
market situation in each country. The position of Norwegian hydropower producers is enhanced by 
their reservoir capacity which, unlike producers of wind power and solar energy, allows flexible 
regulation and precision in the flow of prod uction. The output of Norway's hydropower stations 
normally exceeds domestic needs.88 In 2016, net exports amounted to 16.4 TWh. However, 
variations in precipitation in combination with seasonal fluctuations in demand (e.g. dry and cold 
winters) may lead to  prolonged periods of importation of electricity. Net imports in 2010, the last 
"dry" year, amounted to 7.5 TWh.  
4.95.   Although the EEA Agreement covers the energy sector, Norway's legal framework has so far 
been little affected by EU regulations, as the libera lization of the electricity market in Norway (in 
1991) occurred before the changes introduced in EU countries in 1996 and 2003. The principal 
pieces of legislation  therefore remain the Energy Act No. 50 of 29 June 1990, the Water Resources 
Act No. 84 of 24  November 2000, the Watercourse Regulation Act No. 17 of 14 December 1917, 
and the Industrial Licensing Act No. 16 of 14 December 1917. The Industrial Licensing Act reflects 
the codification (in 1909) of waterfalls being part of the national wealth, and mo st water resources 
have therefore been developed by public sector enterprises, as concessions for private developers 
were of limited duration (60 years). Following an examination of the Norwegian concessions and 
licensing system, started by the EFTA Survei llance Authority in 2001, and ending with a decision of 
the EFTA Court in June 2007, the Court concluded that Nor way was obliged to act in a 
non-discriminatory manner in relation to private ownership, or be more consistent in the 
application of public owne rship. Concessions to private investors are therefore no longer granted. 
However, private investors are permitted to own up to one third of the capital in public enterprises 
granted concessions according to the Industrial Licensing Act.  
4.96.   Approximately 70 e nergy -related EU directives and regulations have so far been 
incorporated into the EEA Agreement, including legislation essential to meet the targets of the EU 
2020 climate and energy package,89 i.e. a 20% reduction in greenhouse gas emissions (from the 
1990 level) with binding national targets in combination with the EU Emissions Trading System 
(ETS)90, a 20% share of renewables in the energy supply with binding national targets , and a 20% 
improvement in energy efficiency. New targets were subsequently set b y EU leaders in October 
2014 for greenhouse gas emissions ( -40%), renewables (27%), and energy efficiency (27%) with 
their approval of the 2030 climate and energy framework. Norway has adopted the same targets 
for emissions and energy efficiency. Norway su bmitted its national plan for renewable energy in 
June 2012, and reports its results bi -annually to the EFTA Surveillance Authority. The traditional 
dominance of renewable sources in the domestic  energy supply provides Norway with a different 
point of depa rture than most EU member States. With a share of renewables of 59.8% in 2005 
                                                
88 The estimated production of hydropower in an average year is 132.3 TWh.  
89 The 2020 package includes four Directives of the European Parliament and of the Council of 
23 April 2009: (i) Directive 2009/28/EC on the promotion of the use of energy from renewable sources and 
amending and s ubsequently repealing Directives 2001/77/EC and 2003/30/EC; (ii) Directive 2009/29/EC 
amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading 
scheme of the Community; (iii) Directive 2009/30/EC amending Direc tive 98/70/EC as regards the specification 
of petrol, diesel and gas -oil and introducing a mechanism to monitor and reduce greenhouse gas emissions and 
amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vesse ls 
and repealing Directive 93/12/EEC; and (iv) Directive 2009/31/EC on the geological storage of carbon dioxide 
and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 
2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006; as well as (v) Directive 
2009/125/EC of 21 October 2009 establishing a framework for the setting of ecodesign requirements for 
energy -related products (recast); (vi) Decision No. 406/2009 of 23 April 2009 on the effort of Member States 
to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction 
commitments up to 2020; (vii) Regulation (EC) No. 443/2009 of 23 April 2009 setting emission performance 
standards for new passenger cars as pa rt of the Community’s integrated approach to reduce CO2 emissions 
from light -duty vehicles; (viii) Directive 2010/30/EU of 19 May 2010 on the indication by labelling and standard 
product information of the consumption of energy and other resources by energ y-related products (recast); 
(ix) Directive 2010/31/EU of 19 May 2010 on the energy performance of buildings (recast); and (x) Directive 
2012/27/EU of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and 
repealing Direct ives 2004/8/EC and 2006/32/EC.  
90 Norway has participated in the EU ETS scheme since 2008.  WT/TPR/S/373 • Norway  
 
- 135 - 
 
  according to EU definitions, Norway's target for 2020 was set at 67.5%. The reported share in 
2014 was 69.2%.  
4.97.   The Norwegian Government submitted a white paper on Norway's energy  policy to 
Parliament in April 2016 listing four priorities towards 2030: (i) robust security of supply; 
(ii) profitable exploitation of renewable energy; (iii) more efficient and climate friendly use of 
energy; and (iv) sectoral development based on effic ient use of renewable sources of energy.91 
The paper does not set specific numerical targets, but notes that the development of Norway's 
remaining hydropower resources appears to offer the most cost efficient addition to the existing 
energy supply. Technolo gical developments have reduced the costs of land -based wind power, and 
the 2015 production level (2.5 TWh) could be significantly increased with the completion of 
concessions granted (12 TWh) and applications under consideration (14 TWh). Although Norway 
also has considerable potential in offshore wind power, costs are considerably higher for wind 
parks at sea. The development of solar energy in Norway is not profitable at current price levels. 
About one quarter of Norway's hydropower resources is protecte d against future development. 
Nevertheless, full use of the remaining potential could  expand Norway's production of hydropower 
by another 20% (Chart 4. 7). 
Chart 4.7 Norway's hydropower resources  
 
Source:  Meld. St. 25 (2015 -2016) Kraft til endring, Energipolitikken mot 2030.  
4.98.   As of 1 January 2018, the electricity rates paid by households and services industries 
include an electricity tax of NKr 0.1658 per KWh. A wide range of industrial users pay the rate of  
the industrial bracket (NKr 0.0048 per KWh), while energy -intensive industries belong in the 
zero tax bracket, in line with the EU framework for the taxation of energy products and electricity. 
Households and public administration in Finnmark and northern  Troms are exempted. In addition, 
households are charged NKr 0.01 per KWh for the benefit of the Energy Fund.92 Moreover, the 
tariffs households pay to their suppliers of electricity include the costs of "green" certificates the 
suppliers must purchase to f inance renewable energy projects.  
4.99.   Norway and Sweden have operated a joint market for "electricity certificates" since 
1 January 2012. The purpose of the scheme is to expand the annual production of renewable 
energy by 28.4 TWh by 2020. The financing is sp lit in fixed proportion between the consumers in 
Norway (13.2 TWh) and Sweden (15.2 TWh) but it is de -linked from where the expansion actually 
takes place.93 The scheme, which grants a payment per MWh to the producer of the additional 
renewable energy, is a pplicable to new installations commissioned before 31 December 2021. The 
                                                
91 Meld. St. 25 (2015 -2016), Kraft til endring, Energipolitikken mot 2030  (in Norwegian only), 
15 April 2016.  
92 Industrial users are charged NKr 800 per year at each point of measurement. Value added tax (25%) 
is levied on top of the tax rates mentioned.  
93 By January 2016, the production facilities approved under the scheme had an expected level of 
average annual production of 13.8 TWh; 2.2 TWh relating to facilities in Norway and 11.6 TWh in Sweden.  
Protected against 
development
49.6
Potential production
25.9In production
132.3Under construction
2.3Rejected
2.0Chart 4.[NOR] Norway's hydropower resources
Meld. St. 25 (2015 -2016) Kraft Til Endring, Energipolitikken Mot 2030. Source: Total = 212 TWh/yearWT/TPR/S/373 • Norway  
 
- 136 - 
 
  certificates are granted for 15 years, but will be valid no further than the end of 2035. The 
Norwegian Government noted in its 2016 white paper on energy policy that, while the schem e has 
promoted the exploitation of wind power and the construction of small hydropower stations, it has 
not furthered technological development or innovation. The Government will therefore not 
introduce new targets for the "electricity certificate" scheme upon its expiry in 2021.  
4.100.   The Climate and Energy Fund is financed through  the State Budget and the electricity tax 
levied on the users.94 The fund finances the activities of Enova SF, a state enterprise reporting to 
the Ministry of Petroleum and Energy (MPE ). The framework for the social mission of Enova is 
established in four -year agreements with the Norwegian Government (through the MPE). The 
current agreement covers the period 2017 -2020. According to Enova's annual report for 2016, the 
enterprise received  fresh funds totalling NKr 2.29 billion and made new commitments totalling 
NKr 2.57 billion in energy and climate projects.95 Enova provides investment support for energy 
efficiency and energy transition activities undertaken by businesses and industry, the  public 
sector, and households. It also operates an advisory service, drawing on the experience of 
managing several thousand projects relating to climate -friendly uses, energy efficiency, energy 
conservation and recovery, and sustainable energy production.  Projects with anticipated energy 
results exceeding 9 TWh were realized with the help of Enova between 2012 and 2016.  
4.3  Services  
4.3.1   Financial services  
4.101.   Regulatory responsibilities for the financial sector in Norway are shared between the 
Ministry of Finance (po licy development and licensing), the Financial Supervisory Authority of 
Norway (Finanstilsynet), and Norges Bank (policy advice and stabilizing measures).96 The 
three  institutions meet formally twice a year, and may hold more frequent tripartite meetings if  
necessary. Norway does not participate in the key fora overseeing  the health of the world's 
financial markets , such as the G -20, the Financial Stability Board (FSB), and the Basel 
Committee.97 However, Norway regularly transposes international guidelines a nd 
recommendations into national legislation, and its participation in the European Union 's single 
market for financial services through the EEA ensures a regulatory regime harmonized with the 
evolving EU acquis in this area. At the regional level, the Min istry of Finance, Norges Bank, and 
Finanstilsynet participate in various fora in the Nordic -Baltic area, including the Nordic -Baltic 
Stability Group and the Nordic -Baltic Macroprudential Forum.  
4.102.   The EU Regulations under which common EU financial supervisory  authorities have been 
operating since 2011 were incorporated into the EEA Agreement in September 2016.98 Henceforth, 
the Financial Supervisory Authority of Norway takes part in the activities of the European Banking 
Authority (EBA), the European Securities  and Markets Authority (ESMA), and the European 
Insurance and Occupational Pensions Authority (EIOPA) in the same manner as the national 
supervisory authorities of EU member States, but without voting rights. Finanstilsynet and Norges 
Bank attend meetings of the General Board of the European Systemic Risk Board (ESRB), subject 
to certain delimitations. Any supranational binding decisions applicable in Norway may only be 
adopted by the EFTA Surveillance Authority. Following the resolution of the institutiona l issues for 
EEA EFTA States in 2016, work has been proceeding to incorporate into the EEA Agreement more 
than 300 EU directives and regulations considered EEA -relevant in the financial markets area. 
However, while the formal incorporation into the EEA Agr eement of many acquis  is pending a 
formal decision in the EEA Joint Committee, the Norwegian authorities have been moving in 
parallel with institutions and bodies within the European Union to put in place Norwegian national 
                                                
94 For 2018, the budget transfer amounts to NKr 2.05 billion, and the electricity tax is expected to raise 
an additional NKr 670 million.  
95 Enova online information. Viewed at: http://presse.enova.no/documents/enovas -aarsrapport -2016-
65160  (in Norwegian) or available in English from: 
http://viewer.zmags.com/publication/3d636be6#/3d636be6/16 . 
96 In addition, Norway established a standing Commission (Banklovkommisjonen) in 1990 to evaluate 
the legal framework for financial services and to prepare detailed proposals an d recommendations. The 
Commission presented its 31st (and final) report in January 2018.  
97 The Norwegian supervisory authorities participate in the FSB Regional Consultative Group for Europe. 
Exceptionally, Norway took part in G -20 events in 2017 at the in vitation of the host country (Germany).  
98 Decision of the EEA Joint Committee No. 198/2016 of 30 September 2016 amending Annex IX 
(Financial services) to the EEA Agreement [2017/275].  WT/TPR/S/373 • Norway  
 
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  legislation that mirror s the con tent of the EU acquis . This applies to a series of measures within 
banking, insurance and securities, in particular requirements stemming from the Capital 
Requirements Regulation (CRR)99, the Capital Requirements Directive (CRD IV)100, Solvency II, 
and MIFID II/MIFIR101.  
4.103.   Norway's financial legislation was overhauled in 2015 with the passage of the Financial 
Institutions Act.102 The new law entered into force on 1 January 2016 and replaced previous 
sectorial legislation, i.e. the Commercial Banks Act (1961), the S avings Bank Act (1961), the Bank 
Guarantee Act (1996), the Financial Institutions Act (1988), and parts of the Insurance Act (2005). 
The Ministry of Finance adopted a new consolidated regulation to the new Financial Institutions Act 
on 12 December 2016.103 The new law and its regulation do not fundamentally alter the conditions 
under which financial institutions operate in Norway, but rather modernize and consolidate the 
legal framework. The Act maintained the capital adequacy requirements for banks and credi t 
institutions adopted in 2013, while introducing new capital adequacy requirements for insurance 
companies consistent with the EU Solvency II Directive.104 
4.104.   Section 3 -6 of the Value Added Tax Act No. 58 of 19 June 2009 exempts supply of financial 
services fr om the payment of VAT in Norway. Although the exemption implies that enterprises 
supplying financial services cannot  deduct input VAT on their acquisitions of goods and services, 
the exemption is overall considered to be a major benefit to the financial in dustry. The exemption 
may also have created incentives for financial enterprises to develop functions in -house rather 
than to purchase them from external sources.  
4.105.   A new financial activity tax, applicable exclusively to enterprises in the financial services  
industry, came into effect on 1 January 2017.105 The tax is levied at the rate of 5% on the payroll 
of these enterprises. In addition, financial services enterprises remained subject to 25% corporate 
income tax on net profits, i.e. one percentage point high er than the general rate applicable in 
2017. According to the Ministry of Finance, these two measures were expected to add 
approximately NKr  2 billion to the Government's accrued tax revenue in 2017.106 As corporations 
subject to the financial activity tax d o not take part in the further reduction in the general 
corporate income tax rate (to 23%), approved by Parliament in the passage of the national budget 
for 2018, the Government estimates an additional NKr 600 million accruing from the financial 
activity t ax this year.  
4.106.   The framework for the financial activity tax is not considered finalized, and the tax may be 
fine-tuned in light of an initial review  to be completed by 1 January 2018.  
4.3.1.1   Banking  and finance  
4.107.   The EEA Agreement provides a rule of free establishment for financial institutions domiciled 
in the EEA to offer banking services in Norway, and vice versa, for Norwegian banks to provide 
banking services within the entire EEA. Under Norwegian law, the acc eptance of deposits in 
combination with the provision of credit  triggers the need to obtain a banking licence. A Norwegian 
financial institution is licenced either as a commercial bank or a savings bank. Financial institutions 
                                                
99 Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on 
prudential requirements for credit institutions and investment firms, and Amending Regulation (EU) 
No. 648/2012.  
100 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013.  
101 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in 
financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.  
102 Act on financial institutions and financial groups 2015 No. 40 of 10 April 2015.  
103 The new consolidated  regulation replaced 50 regulations adopted on the basis of the previous laws.  
104 Among other changes brought by the Act are more detailed regulation of cooperative agreements 
between financial institutions (outside of group relations), the exchange of cust omer information between 
group entities, an obligation for retail banks to accept and distribute cash, and mandatory internal audit.  
105 The financial activity tax is applied to enterprises with their main business in area K of the Standard 
Industrial Classi fication (SN2007) of Statistics Norway, e.g. banks, insurance companies, mortgage companies, 
pension funds, mutual fund managers, securities firms, investment companies, and payment processing 
enterprises.  
106 The financial activity tax is roughly estimated to return the tax burden on the financial services 
industry to the 2013 level, i.e. when the rate of corporate income tax was 28%. Ministry of Finance fact sheet 
(in Norwegian). Viewed at: 
https://www.regjeringen.no/contentassets/1cde615891ca463783b967ab25b20417/faktaark4.pdf   WT/TPR/S/373 • Norway  
 
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  established within the Europe an Union or elsewhere in the EEA may accept deposits in Norway as 
long as their home -state licence gives them the right to accept deposits (so -called passporting). As 
for the supervision of large individual banks operating in several countries, the EBA has  issued 
guidelines for the establishment of supervisory colleges formed by representatives of the national 
supervisory authorities of the countries concerned.107 
4.108.   Commercial banks are organized as limited liability companies (public or private) with a 
share c apital of a minimum  of €5 million. Foreign banks may establish branches in Norway in 
accordance with EU (EEA) banking directives. The Financia l Institutions Act includes 
non-discriminatory rules on ownership control. Prior authorization  must be obtained fr om the 
Ministry of Finance for the acquisition of 10% or more of a Norwegian bank's capital or voting 
rights, or for the purchase of a stake that gives the owner significant influence over a bank's 
management and its business. Beyond the prior authorizatio n requirement, the rights of owners 
(whether resident, non -resident, or foreign) to hold and vote with their shares or equity 
certificates are not restricted.108 
4.109.   Licences to provide investment services may be granted to banks or limited liability 
companies. Banks may seek such licences either through the parent bank or a subsidiary. Foreign 
"passported" firms may also provide investment services in Norway.  
4.110.   The Norwegian financial sector included 125 banks, 33 mortgage companies (mostly 
owned by banks), and 25  finance companies licensed to operate in Norway at the end of 2017. In 
addition, 38 branches of foreign banks and credit institutions (of which 12 were classified as 
banks) had a base in Norway. The importance of government  lending schemes peaked in the e arly 
1990s. Their prominence declined steadily until 2007, and their market share has been stable 
since then. Thus, loans from the Norwegian State Housing Bank, the Norwegian State Educational 
Loan Fund, Innovation Norway, the Norwegian Export Credit Guara ntee Agency (GIEK), and Export 
Credit Norway account for no more than 6% of the outstanding credit volume at present. The 
Norwegian banking sector is strongly oriented towards the domestic market.109 Foreign customers 
account for no more than 5% of the lendi ng volume in the sector. Household demand, primarily for 
mortgages, constitutes nearly 50% of the market, while the corporate sector accounts for 26% of 
the volume of loans (Chart 4. 8). 
Chart 4.8 Borrowers fro m Norwegian banks and covered bond mortgage companies in 
Norway, 2016  
 
Source:  Norges Bank.  
                                                
107 In the case of Norway, Finanstilsynet is the coordinating authority for the supervisory college of DNB, 
in which eight other nat ional authorities participate. Conversely, Finanstilsynet has joined the supervisory 
colleges of seven foreign banks operating in Norway.  
108 At general meetings of savings banks, the owners of equity certificates represent at most 40% of the 
voting rights.  Savings banks are effectively protected against hostile takeovers due to their structure.  
109 18 branches of Norwegian -based credit institutions operated outside of Norway at the end of 2016.  
 
Retail market -
residential mortgage 
loans
47%
Retail market -
other loans
3%Corporate market
26%Foreign customers
5%Other loans
19%Chart 4.1 
Borrowers from Norwegian banks and covered bond mortgage companies in Norway, 2016
Source:  Norges Bank.WT/TPR/S/373 • Norway  
 
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  4.111.   Despite the relatively large number of banks, market concentration is quite high. The 
market share of the largest bank (DNB) is about 30% in the retail market as w ell as in the market 
for corporate customers (Chart 4. 9). Moreover, most savings banks have strong positions in the 
local markets in which they operate, and many of them have joint operations by virtue of their 
membership in one of two nationwide savings b anks' alliances (Sparebank1 Gruppen and Eika 
Gruppen).110 Foreign banks played a key role in the development of the Norwegian petroleum 
sector from around 1970. However, it was only in 1985 that foreign banks were allowed to engage 
in banking activities in N orway. Over the past 20 years, branches and subsidiaries of foreign banks 
have built a significant presence in the retail and commercial market through acquisitions of 
existing banks and organic growth (Table 4.1 5). 
Chart 4.9 Loan market shares of banks in Norway at the end of 2016  
 
Source:  Norges Bank.  
Table 4.15 Norway's largest banking groups  
Name  Core area  Total assets 
(end -2016) 
NKr billion  Gross 
lending in 
Norwaya 
(end -2016) 
NKr billion  Ownership  
DNB Group  Nationwide  2,348  1,125  34% state -owned, 9% owned by 
savings bank foundation  
Nordea Bank Norgeb Nationwide  669 465 Branch of Swedish bank  
Danske Bank  Nationwide  379 235 Branch of Danish bank  
Handelsbanken  Nationwide  234 230 Branch of Swedish bank  
SpareBank 1 SR -bank Regional  193 178 Limited liability savings bank, 
member of SpareBank 1  Gruppen  
Sparebanken Vest  Regional  163 136 Independent savings bank  
Santander Consumer 
Bank Nationwide 
(consumption 
credit)  143 52 Subsidiary of Spanish bank  
SpareBank 1 SMN  Regional  138 136 Savings bank, member of 
SpareBank 1 Gruppen  
SEB NUF  Nationwide 
(investment 
banking)  130 10 Branch of Swedish bank  
Sparebanken Sør  Regional  105 91 Independent savings bank  
                                                
110 Sparebank 1 Gruppen comprises 16 banks, including four large regional savings banks. Around 
80 savings banks, mostly smaller banks, have joined forces in Eika Gruppen. Less than 20 savings banks 
remain formally non -aligned, but some of them have joint own ership in business ventures (insurance, 
mortgages, securities, and corporate finance).  
 
28%
12%
9%20%10%20%
DNB Bank
Subsidiaries of foreign banks
Branches of foreign banks in Norway
SpareBank 1 Alliance
Eika Alliance
Other savings and commercial banks31%
14%
21%16%7%12%Chart 4.2 Loan market shares of banks in Norway at the end of 2016
Retail market Corporate market
Source:  Norges Bank.WT/TPR/S/373 • Norway  
 
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  Name  Core area  Total assets 
(end -2016) 
NKr billion  Gross 
lending in 
Norwaya 
(end -2016) 
NKr billion  Ownership  
Sparebank 1 Østlandet  Regional  101 118 Savings bank, member of 
SpareBank 1 Gruppen  
SpareBank 1 Nord -
Norge  Regional  91 96 Savings bank, member of 
SpareBank 1 Gruppen  
Sbankenc Nationwide  71 63 Independent commercial bank  
Sparebanken Møre  Regional  62 53 Independent savings bank  
a Including loans transferred to jointly owned covered bonds companies.  
b Nordea Bank Norge operated as a subsidiary of the Swedish parent bank until 2 January 2017. 
Nordea's subsidiaries in Denmark and Finland were also converted to branches on that day. As a 
result, the financial supervisory authorities in Denmark, Finland, No rway and Sweden have 
concluded a Memorandum of Understanding on the supervision of systemically -important branches.  
c Skandiabanken was established by a Swedish insurance group in 2000. Skandia AB was acquired by 
Old Mutual plc in 2006. The banking operat ions in Norway were reorganized in 2015, and Sbanken 
(renamed in November 2017) is currently listed on the Oslo Stock Exchange with predominantly 
Norwegian ownership.  
Source:  Norges Bank, Norway's Financial System, Norges Bank Papers No. 2/2016, and inform ation provided 
by the authorities.  
4.112.   Norway does not appear to be "overbanked" in comparison with other countries. Measured 
against Norway's GDP, the combined assets of Norwegian banks grew from around 160% in 2007 
to 220% in 2016. Unlike in the early 1990s , when Norway suffered a severe domestic banking 
crisis, liquidity emerged as the only major challenge in Norway during the global financial crisis in 
2008-09.111 The main lasting effect of the 2008 turmoil has been the strong growth of specialized 
mortgage companies, established by the banks.112 These companies issue covered bonds (OMF – 
obligasjoner med forkjøpsrett) backed by prime residential and commercial mortgages the parent 
banks have ceded to them. At the end of 2016, the total volume of such covered b onds amounted 
to NKr 530 billion, i.e. about 30% of the entire Norwegian  bond market. A substantial share 
(around 45%) of Norwegian bonds is funded in foreign currencies.113 
4.113.   Norwegian banks have generally maintained good profitability since 2009, aided by higher 
business volume, stable interest margins, occasional cost -cutting measures, and low levels of 
defaults and loan losses.114 The interaction between technological change and consumer behaviour 
has prompted the closure of several hundred retail outlets s ince 2000, while the overall number of 
bank employees has remained fairly stable over the period.115 Most Norwegian banks continue to 
attain an after -tax return on equity above 10%, even though the steady accumulation of equity in 
response to sharply increas ed capital adequacy requirements has made such targets more difficult 
to achieve. Most banks have been able to meet the gradually tighter capital requirements through 
retained earnings (but with sharply reduced dividend payments). New issues of shares or e quity 
certificates (savings banks) have also been completed on occasion.  
4.114.   The risk -weighted capital ratios of Norwegian banks have risen markedly since 2008. At 
first, the increase was mainly due to the application  of lower risk weights, particularly for 
residential mortgages, in the implementation of Basel II. Subsequently, the regulatory 
requirements have become tighter. All banks were required to meet a minimum common equity 
(tier 1) capital ratio (CET1) of 9% by 30 June 2012. New capital adequacy rules a dopted in 2013 
stipulated a minimum level of CET1 capital of 4.5% as well as a CET1 capital buffer of no less than 
                                                
111 See WTO (2012) , Trade Policy Review – Norway , Geneva . A swap arrangement whereby banks could 
convert their covered bonds into liquid treasury bills was discontinued i n 2014.  
112 Covered bonds (OMF) were introduced in 2007, but at the height of the turbulence in late 2008, most 
banks had yet to establish the mortgage companies authorized to issue such bonds.  
113 The euro is the preferred currency, but bonds are also issued in US dollars, Swedish kronor, 
Swiss  francs, and pound sterling.  
114 Non-performing loans constituted 1.3% of total loans at the end of 2016 and 1.2% at the end of 
September 2017.  
115 Nonetheless, some senior bankers indicated during 2017 that further automat ion of banking 
operations could lead to significant layoffs in the sector over the next 5 -10 years. According to Statistics 
Norway, Norway's financial sector employed approximately 47,600 persons in September 2017, 5% fewer than 
in 2000.  WT/TPR/S/373 • Norway  
 
- 141 - 
 
  4.5% of the risk -weighted assets (Chart 4.1 0). Programmed increases in the capital buffer 
requirement were also announced: to 5.5% from 1 Jul y 2014, and 6.5% from 1 July 2015 with the 
introduction of a countercyclical capital buffer of 1%. The level of the countercyclical capital buffer 
is decided by the Ministry of Finance every quarter on the recommendation of Norges Bank.116 The 
countercyclica l buffer was increased from 1% to 1.5%, effective 30 June 2016, and subsequently 
raised to 2% as from 31 December 2017. Systemically important banks must meet an additional 
CET1 capital buffer of 2%.117 Since 30 June 2017, banks are also obliged to meet leve rage ratio 
requirements; 6% for the systemically important banks and 5% for all other banks.118 The average 
leverage ratio for Norwegian banks was 7.9% at the end of 2016, and all banks were set to satisfy 
the new supplementary requirement.  
Chart 4.10 Core equity in Norwegian banks relative to regulatory requirements, 
1996-2018, and core equity in individual banks (risk -weighted), 2014 -16 
 
Source:  Finanstilynet and Ministry of Finance.  
4.115.   As for the requirements fo r liquid reserves contained in CRR/CRD IV, the Ministry of 
Finance stipulated (in November 2015) a liquidity coverage ratio requirement (minimum 100%) to 
be met by the systemically important banks by the end of 2015.119 For other banks, the liquidity 
require ment has been phased in over a period of two years. The liquidity coverage ratio may be 
                                                
116 The countercycl ical capital buffer may vary between zero and 2.5%.  
117 Initially, the additional buffer for systemically important banks was 1%. The Financial Stability Board 
includes the Swedish -based Nordea Bank AB in its list of global systemically important banks (G -SIBs). 
Nordea's wholly  owned subsidiary Nordea Bank Norge was considered a systemically important bank in 
Norway; it has been operating as a branch of the Swedish parent bank since 2 January 2017. DNB ASA and 
Kommunalbanken are the other systemically importa nt banks in Norway. The wholly state-owned 
Kommunalbanken is a funding agency for local governments. The agency benefits from its AAA/Aaa rating as it 
issues bonds and notes in international markets to fund low -cost, long -term amortized loans to counties, 
municipalities, and inter -municipal enterprises. About 98% of Norway's municipalities are clients of 
Kommunalbanken.  
118 The leverage ratio measures CET1 capital against the gross level of exposures, i.e. no weighting of 
risks takes place. The 5% leverage ra tio has two elements; a minimum requirement (3%) and a buffer 
requirement (2%).  
119 Basel III, on which the EU regulations are based, contains two liquidity requirements: a liquidity 
buffer (LCR – Liquidity Coverage Ratio) and a long -term assets/funding indi cator (NSFR – Net Stable Funding 
Ratio). The LCR requirement was introduced in the European Union, with phase -ins like in Norway, on 
1 October 2015. The implementation schedule for the NSFR remains to be decided.  
0%2%4%6%8%10%12%14%16%18%199619982000200220042006200820102012201420162018Buffer requirement (systemically  important banks)
Counter-cyclical buffer
Buffer requirement
Minimum requirement
CET 1 capital ratio
0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%
DNB Bank
Nordea
Spb1 SR-bank
Spb Vest
Spb1 SMN
Spb Sør
Spb NN
Medium-seized
Smaller banks31/12/2014 31/12/2015
31/12/2016Core equity in Norwegian banks relative to 
regulatory requirements, 1996 -2018Core equity in individual banks 
(risk -weighted), 2014 -16
Source:  Information provided by the authorities.Chart 4.11   WT/TPR/S/373 • Norway  
 
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  measured separately for individual currencies or as a total across currencies. The average ratio for 
Norwegian banks was 143% at the end of 2016.120 
4.116.   In line with guidelin es of the European Banking Authority121, Norway requires all its banks 
and finance companies to carry out an annual internal assessment of the risks associated with 
their business models and, as a consequence, their needs for capital (Internal Capital Adequa cy 
Assessment Process – ICAAP) and liquidity (Internal Liquidity Adequacy Assessment Process – 
ILAAP). As part of its Supervisory Review Evaluation Process (SREP), Finanstilsynet examines the 
iterations and outcome of each bank's ICAAP/ILAAP, and establish es an individually  based 
requirement for additional own funds for each bank (Pillar 2) to cover risks that are not captured, 
or only partially covered , by the minimum and buffer capital requirements applicable to all banks 
(Pillar 1). Finanstilsynet began publishing its Pillar 2 decisions in October 2016122, and additional 
own-fund requirements (ranging from 0.5% to 5.5%) have so far been set for more than 
50 financial institutions.123 
4.117.   In the aftermath of the domestic banking crisis in the early 1990s, Norway b olstered its 
deposit  insurance scheme. The guaranteed amount (up to NKr 2 million per depositor per bank) 
has been unchanged since 1996. The scheme is funded through an annual levy paid by the 
participating banks. The assets of the Norwegian Banks' Guarant ee Fund (NBGF) totalled nearly 
NKr 33 billion at the end of 2016, NKr 3.7 billion more than the statutory requirement.124 The 
NBGF had 134 members, including six branches of foreign banks. All banks incorporated in 
Norway, including subsidiaries of foreign b anks accepting deposits from the general public in 
Norway, are obliged to participate in the Fund. Branches of foreign banks are not required to join 
the NBGF if the guarantee scheme of the home country offers at least as good protection as the EU 
Deposit Guarantee Schemes Directive (DGSD).125 If they opt to join the NBGF, their deposits are 
first covered by the insurance scheme of their home countries (€100,000 for EU -based banks), 
with the NGBF providing the additional coverage up to NKr 2 million.  
4.118.   The DGSD  sets a harmonized general coverage level of €100,000 (per depositor per 
bank).126 However, the Directive allows certain countries applying a higher coverage level prior to 
the application of Directive 2009/14/EC to maintain such coverage until 31 December 2 018, by 
which time the Commission is to have carried out a review of this option. The Norwegian 
authorities seek to maintain the existing general guarantee up to NKr 2 million (approximately 
€210,000) beyond 2018. The DGSD also stipulates that, in case of a bank failure, the guaranteed 
deposits are to be repaid within seven working days, two days more than allowed under current 
Norwegian legislation. On this point, the Norwegian  provisions will remain unchanged.  
4.119.   The EU Bank Recovery and Resolution Directive  (BRRD)127 obliges banks to prepare 
recovery plans to overcome financial distress, and enables national authorities to ensure an 
orderly resolution of failing banks. Each EU member State must establish a national resolution fund 
towards which all its financi al institutions must contribute. A "bail -in" mechanism ensures that a 
bank's shareholders and creditors take part in the restructuring of their bank. The national 
resolution fund is only mobilized if shareholder/creditor contributions prove insufficient to  maintain 
a bank's operations during the restructuring phase.  
                                                
120 Liquid holdings are measured against net  liquidity outflows during 30 calendar days. The average 
ratio was 88% for Norwegian kroner. The limited availability of notes and bonds denominated in Norwegian 
kroner that satisfy the definitions in CRR/CRD IV acts as a constraint on a high ratio in this  currency.  
121 The EBA guidelines have been drawn up according to Article 107(3) of the Capital Requirements 
Directive.  
122 The decisions are publicly available (in Norwegian) at: https://www.finanstilsynet.no/offentliggjoring -
av-finanstilsynets -vedtak -om-pilar-2-krav-for-enkeltbanker/ . 
123 The majority of the Pillar 2 requirements fall in the 1.5% -3.0% range. Higher top -ups of CET1 
typically  apply to smaller banks with significant portfolios of consumption loans. In light of banks' internal 
capital targets, Finanstilsynet also assesses the overall level of equity for each bank beyond the needs for CET1 
stipulated by Pillar 1 and Pillar 2. For  systemically important banks, Finanstilsynet has made its opinion specific 
(a margin of 0.7% or 1.0%); for other banks it expects Pillar 1 plus 2 to be exceeded by "an ample margin".  
124 The NBGF should cover  a minimum of 1.5% of the guaranteed deposits and  0.5% of the combined 
risk-weighted liabilities of its member banks.  
125 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014.  
126 The Directive allows unlimited guarantees to be granted for up to 12 months for large deposits of 
exceptional nature for retail clients, e.g. proceeds resulting from property transactions, marriage, divorce 
settlements, or lump -sum accident and disability compensation.  
127 Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014.  WT/TPR/S/373 • Norway  
 
- 143 - 
 
  4.120.   In June 2017 , Norway 's Ministry of Finance proposed new legislation to implement the 
DGSD and BRRD. The draft legislation designates Finanstilsynet as Norway's resolution authority, 
while the Ministry of Finance decides whether an institution meets the conditions for resolution . 
The existing resources of the NGBF are intended to be split into a deposit guarantee fund 
(approximately NKr 14.6 billion) and a new resolution fund (around NKr 17.9 billion). The future 
annual levy paid by the banks into each fund would amount to 0.08% and 0.1% (respectively) of 
the covered deposits. For the banks, the new levy will be higher than their present contributions 
but on par with the 2010 level (adjusted for the growth of the banking sector).128 
4.121.   Many countries, including Norway, have witnessed i n the past that a bursting property 
bubble with resulting deep declines in property values may have severe repercussions on the real 
economy. Mindful of the upward effect of persistent low interest rates on property prices and 
household debt, the financial  supervisory authority began to issue guidelines for residential 
mortgages in 2010.129 Banks were initially required to demand that buyers put up a minimum of 
10% of the acquisition costs; the minimum equity rate has been set at 15% since 
1 December  2011.130 The required level of own funds is higher for credit lines and non -amortizing 
loans. Since 2011, banks have also been requested to undertake "stress -testing" of their mortgage 
customers, i.e. to ensure that households have the capacity to absorb an increase  in the mortgage 
interest rate of 5 percentage points. The guidelines were replaced by a regulation with effect from 
1 July 2015. The regulation, set to expire at the end of 2016, was succeeded by a new regulation, 
effective from 1 January 2017.131 The regul ation stipulates an additional requirement: that the 
total level of indebtedness should not exceed five times the gross income of the household.  
4.122.   Concurrently with the tightening of rules related to mortgage lending, the authorities have 
also been taking s teps to contain the rapid expansion of consumption credit, including credit card 
debt. Although such loans still account for a modest share of household debts overall (Chart 4.9), 
the high interest rates associated with credit without collateral make them an important expense 
for households resorting to this type of financing. Tighter rules concerning the marketing of 
consumption credit entered into force on 1 July 2017, heralding further measures to be put in 
place, including an obligation on the lenders t o perform more stringent vetting practices, and the 
establishment of a national register for unsecured debts.  
4.3.1.2   Insurance and pensions  
4.123.   The Insurance Activities Act132, which implements all relevant EU Directives and 
Regulations on insurance, applies to all ty pes of insurance, whether life, non -life or reinsurance. A 
licence is required for the provision of compulsory insurance (such as motor vehicle liability 
insurance) in Norway. The authorization to establish a Norwegian insurance company is issued by 
the Mi nistry of Finance upon the recommendation of Finanstilsynet.133 An insurance company 
domiciled within the EEA may provide insurance services cross -border or through a branch in 
Norway. Subject to notification, the establishment of a branch triggers consultat ions between 
Finanstilsynet and the supervisory authority of the insurer's home state. The insurer must 
designate a general agent to manage its branch in Norway, and the general agent must reside in 
an EEA State. Cross -border provision of insurance is allo wed for the types of products the insurer 
is authorized to market in its home state. Notification to this effect and any changes to the 
authorizations are submitted to Finanstilsynet by the supervisory authority of the insurer's home 
State. Non -EEA insurer s may not supply insurance services cross -border to Norwegians or to 
Norwegian companies. However, they may apply for a licence to establish a branch in Norway. The 
                                                
128 The proposed levy differentiates between highly capitalized banks and other banks, allowing the 
most solid banks to pay proportionately less into the new funds. Both levies are risk sensitive.  
129 Finanstilsynet, Circular No. 11/2010 of 3 March 2010.  
130 Finanstilsynet, Circular No. 29/2011 of 1 December 2011.  
131 Ministry of Finance, Regulation No. 1581 of 14 December 2016. The Regulation is valid until 
30 June 2018. Banks are allowed some flexibility, for example for first -time borrowers, as up to 10% of the 
loans (accorded per quarter) may deviate from the norm. Following a particularly sharp increase in property 
prices in the Oslo area during 2016, the flexibility provision was cut to 8% for Oslo. Moreover, for real estate 
purchases in Oslo that will not  constitute the primary residence of the household/investor, the minimum equity 
requirement is now 40%.  
132 Act No. 44 of 10 June 2005.  
133 Finanstilsynet evaluates several factors, including the management of the proposed company, all 
owners controlling more than 10% of the company's capital or voting rights, the proposed line(s) of business, 
and the start -up capital.  WT/TPR/S/373 • Norway  
 
- 144 - 
 
  general agent of the branch must be resident in Norway. The same principles apply to reinsu rance, 
although a non -EEA reinsurer may participate in reinsurance programmes without a licence as long 
as the first approach is made by the reinsured company. There have been no  reinsurance 
compan ies based in Norway since 2010.  
4.124.   Norway has implemented the  new European solvency framework for insurers (Solvency II) 
through the Financial Institutions Act 2015, the Solvency II Regulations of 25 August 2015, and 
supplementary regulations. Moreover, detailed technical rules, recommendations, and clarifications 
developed by the European Union also apply in Norway. The Solvency II framework entered into 
force on 1 January 2016, stipulating new risk -sensitive capital requirements and affecting insurers' 
valuation of technical provisions, risk management systems and internal control, information 
disclosure, and markedly increased reporting to the supervisory authorities. Tighter requirements 
apply to life insurance products with a guaranteed return, in particular paid -up policies.134 A long 
transitional arrangement (16 years) applies for the required increases in insurers' technical 
provisions resulting from Solvency II.  
4.125.   At the end of 2016, the Norwegian insurance industry comprised 107 registered insurance 
intermediaries, 13 life insurers, 59 non -life insurers (includin g 15 fire insurers), and six marine 
insurance associations licensed in Norway. In addition, 29 branches of foreign insurers were 
operating in Norway, while 13 branches of Norwegian insurers conducted business abroad. Life 
insurance constitutes approximatel y 55% of the premium income of the Norwegian insurance 
industry with three providers (Kommunal Landpensjonskasse (KLP), Storebrand Livsforsikring, and 
DNB Livsforsikring) each holding a market share of 20% or more. In non -life insurance, where 
auto insuran ce is the largest segment, the largest undertakings are Gjensidige, If Skadeforsikring, 
Tryg, and Sparebank 1 Skadeforsikring. The market share of the four largest non -life insurance 
undertakings has been declining over the last 10 years due to new entrant s and the rapid growth 
of some of the smaller insurers.  
4.126.   Gross premiums earned by non -life insurance companies in Norway (including branches 
from abroad) totalled NKr 78 billion in 2016, and their reported combined ratio averaged 85%. The 
total pre -tax prof its amounted to NKr 15.7 billion in 2016. Their average claims ratio has declined 
from 72.4% to 66.4% over the last five years, while there has been a steady decline in costs with 
the adaptation of new technologies. At present, most Norwegian insurers prov ide net -based 
portals for the purchase of insurance and the filing of claims.  
4.127.   In life insurance, gross premiums written totalled NKr 92.4 billion, including nearly 
NKr 10 billion of new business, in 2016. Pre -tax profits totalled NKr 8.2 billion in 2015 an d 
NKr 7 billion in 2016. The average solvency capital ratio of the life insurance companies averaged 
222%, including use of the transitional provision, at the end of 2016.135 Although profitability has 
been good in recent years, anticipated  conformity with t he Solvency II framework has required 
considerable accumulation of equity from retained earnings. However, the industry has also been 
facing challenges resulting from higher life expectancy of the insured population and historically 
low interest rates. Fin anstilsynet introduced new "mortality tables" in 2013, requiring the insurers 
to raise premiums for retirement pensions in collective pension schemes and to add provisions for 
already accrued pensions. The companies were granted seven years to build the ad ditional 
reserves. The life insurance companies accordingly increased these reserves by NKr 39 billion 
between 2013 and 2016, with approximately NKr 2 billion remain ing to be set aside during 
2017-20. The insurers have adapted to low interest rates through  a gradual reorientation of their 
business models towards products where risk is transferred to the insured person in return for 
greater influence over the investment decisions. Companies have also reduced their guaranteed 
rates and, depending on the finan cial results, charged guaranteed rate premiums on products 
offering guaranteed rates. As a result, many private -sector employers have switched from 
guaranteed (defined -benefit) to defined -contribution pension schemes in recent years.136 
                                                
134 One life insurer with major exposure to paid -up policies, Silver Pensjonsforsikring AS, was exempted 
from the new Solvency II capital requirements until 15 February 2017. As the company proved unable to raise 
additional capital to meet an estimated NKr 3 billion shortfall in its reserves, the Ministry of Finance decided to 
place Silver in public administration on 17 February. Another insurer (Storebrand) announced on 30 January 
2018 that it had taken over Silver's business.  
135 The solvency capital ratio wi thout transition was 183%. A ratio of less than 100% indicates that a life 
insurer is not in compliance with the capital requirements of the solvency regulations.  
136 Preferential tax treatment of defined -benefit pension products was extended to defined -contribution 
policies in 2000.  WT/TPR/S/373 • Norway  
 
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  4.128.   The pension system in Norway is based on three pillars: (i) the National Insurance Scheme 
– a state pension scheme with universal coverage; (ii) occupational pensions, i.e. pensions 
financed by employers; and (iii) individual savings and pension schemes. O ccupational pension 
schemes became mandatory in 2006. The employer contribution, in general 2% of the employee's 
earnings as a minimum, is paid into a defined contribution pension scheme. Employees leaving 
private businesses with defined benefit pension sc hemes receive paid -up policies. Such policies are 
also issued when employers switch from defined benefit to defined contribution pension schemes, 
or when businesses are wound up.137 Paid-up policies now account for around 20% of life 
insurance company liabil ities. 
4.129.   Employers may delegate the management of their pension assets to a licenced 
undertaking, such as a life insurance company, or set up their own pension funds. At the end of 
2016, 48 private pension funds and 39 municipal pension funds held a licence in Norway. The 
largest private pension fund (Statoil Pension) held assets worth nearly NKr 70 billion at the end of 
2016. The pension fund for public health enterprises in the Oslo area and the pension funds of 
some of the large municipalities (Bergen, Trondheim , and Bærum) are also of significant size. 
However, occupational pensions for most public sector employees are provided by the Norwegian 
Public Service Pension Fund (SPK – Statens pensjonskasse) or by the insurance undertaking KLP. 
The SPK is a pay -as-you-go pension scheme and is thus not fully funded. The accrued pension 
entitlements of its participants were estimated to total NKr 509 billion at the end of 2016. By 
contrast, the pension schemes of the KLP are fully funded. KLP's total assets were NKr  497 billion 
at the end of 2016.  
4.130.   The Solvency II framework does not apply to pension funds. Pension funds therefore 
remain subject to solvency margin requirements under Solvency I. In addition, they are required 
to conduct and report the results of two str ess tests to Finanstilsynet on a regular basis. According 
to one of the tests, the pension funds improved their " buffer  capital utilization" by 13 percentage 
points (from 101% to 88%) during 2016.138 
4.3.1.3   Securities  
4.131.   Finanstilsynet supervises the securities market  to ensure that trading in financial 
instruments is secure, orderly and efficient, including that market participants have access to 
accurate information. The supervision covers marketplaces and settlement systems, investment 
firms, mutual funds and manage ment companies, alternative investment fund managers, 
prospectus control, and the financial reporting of listed issuers.  
4.132.   The EU Markets in Financial Instruments Directive (MiFID I)139 was implemented in Norway 
through the Securities  Trading Act and the Stock  Exchange Act in 2007. MiFID II and its Regulation 
(MiFIR), which entered into force in the European Union on 3 January 2018, have not yet been 
adopted at the EEA level. In December 2017, pending the incorporation of MiFID II and MiFIR into 
the EEA Agreeme nt, two new Norwegian regulations were adopted that mirror the content of MiFID 
II/MiFIR. Both market operators and Finanstilsynet have developed new IT systems to enable 
processing of the extensive daily reporting requirements on positions in commodity de rivatives, 
emission allowances and derivatives thereof stemming from MiFID II/MiFIR. The European Markets 
Infrastructure Regulation (EMIR)140 was incorporated into the EEA Agreement on 
30 September  2016 and entered into force in Norway on 1 July 2017 alongsi de the national 
legislation implementing it.141 The Investment Fund Act (2011) has been amended to ensure 
compliance with the UCITS V Directive.142 The amendments entered into force on 1 January 2018. 
                                                
137 No further premium payments are made under a paid -up policy. The policy holder is entitled to a 
future pension, the level of which will depend on the future return on the invested assets.  
138 A score below 100% indicates that the  available buffer capital is higher than the overall potential 
loss. 
139 Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in 
financial instruments amending Council Directives 85/611/EEC and  93/6/EEC and Directive  2000/12/EC of the 
European Parliament and of the Council and repealing Council Directive 93/22/EEC.  
140 Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC 
derivatives, central counterparties and trade repositori es. 
141 Finanstilsynet, Circular No. 6/2017 of 4 July 2017.  
142 Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 amending 
Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to WT/TPR/S/373 • Norway  
 
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  As for alternative investment funds (non -UCITS funds), thes e are regulated according to the 
Alternative Investment Fund Management Act 2014. Regarding ELTIFs (European Long -Term 
Investment Funds), designed to facilitate long -term investment in research and infrastructure 
projects by institutional and private inves tors, the ELTIF Regulation143 remains to be incorporated 
into the EEA Agreement.  
4.133.   Subject to notification to Finanstilsynet, foreign securities funds domiciled within the EEA 
and covered by the UCITS Directive may be marketed in Norway. The notification is p rovided by 
the supervisory authority of the home state of the undertaking, which also informs the fund 
manager that the transmission of documentation has taken place. Units of such funds must be sold 
directly from the head office of the manager or through an intermediary (management company, 
credit institution, insurance company , or investment firm) licenced to provide financial services in 
Norway. The marketing of non -EEA alternative investment funds and alternative investment funds 
managed by non -EEA alte rnative investment fund managers to professional investors in Norway 
requires authorization from Finanstilsynet.  
4.134.   The market value of companies listed on the Oslo Stock Exchange was close to 
NKr 2,500  billion in October 2017. The number of listed companies has remained stable since 
2000, defying a trend elsewhere in Europe towards fewer listed entities. Nearly NKr 28 billion in 
new equity was raised in the Norwegian securities market during 2016. The market value of assets 
held by Norwegian securities funds totalled NKr 981.6 billion at the end of 2016. The stock of 
bonds issued in the Norwegian bond market totalled nearly NKr 400 billion at the end of 2016, 
three times more than a decade earlier. The volume of bonds was divided roughly equally between 
high y ield and investment grade bonds.144 Growth has been aided by common use of a trustee 
arrangement attending to the right of bondholders, independent pricing services, and access to 
unofficial ("shadow") ratings. Smaller companies in particular have found credit ratings performed 
by the globa l rating agencies (Moody's, Fitch, and Standard and Poor's) to be a significant, and 
sometimes discouraging, cost. However, following a recommendation from ESMA that the use of 
shadow ratings should cease, the financial institutions chose to discontinue th eir unofficial rating 
practices in 2016. Meanwhile, a German rating agency (Scope Ratings AG) has established 
operations in Norway, and funds have been raised among Nordic banks and life insurers to 
establish a regional credit rating agency. Aimed at finan cial analysis and credit rating of small and 
medium sized enterprises, Nordic Rating AS intends to apply for a credit rating agency licence from 
ESMA.  
4.135.   Norwegian households account for a minor share (4%) of the listed equity instruments 
registered in the No rwegian Central Securities Depository (VPS – Verdipapirsentralen ASA) and 
only a negligible share (0.4%) of the registered bonds and certificates. In order to encourage 
long-term investment in stocks and mutual funds by private investors, the Norwegian Gov ernment 
launched share savings accounts for listed shares and equity funds in 2017. Henceforth, account 
holders may trade freely in stocks and mutual funds without being subject to taxation of any 
resulting capital gains, as long as the gains are reinveste d.145 Taxation may only occur once 
withdrawals exceed deposits into the accounts.  
4.3.1.4   Other financial services  
4.136.   The Payment Services Directive (PSD)146, which entered into force in the European Union 
in 2007, was incorporated into the EEA Agreement in 2008.147 PSD, a imed at the creation of a 
single market for payments within the European Union, inter alia,  simplified payment procedures 
                                                                                                                                                  
undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, 
remuneration policies and sanctions.  
143 Regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015 on 
European long -term investment funds. The rules on ELTIFs are linked closely to Directive 2011/61/EU that 
governs the management and marketing of alternative investment funds (AIFs) in the European Union. ELTIFs 
are by definition EU AIFs managed by alternative investment fund  managers (AIFMs) authorized in accordance 
with the Directive.  
144 Offshore services and shipping accounted for half of the outstanding volume of high -yield bonds.  
145 Funds held in cash in these accounts are not remunerated.  
146 Directive 2007/64/EC of the Eur opean Parliament and of the Council of 13 November 2007 on 
payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 
2006/48/EC and repealing Directive 97/5/EC.  
147 PSD entered into force in Norway on 2 November 2011.  WT/TPR/S/373 • Norway  
 
- 147 - 
 
  and processing, opened payments to new (non -bank) entrants, and created a legal platform for 
the Single Euro Payments Area (SEPA). In Norway, the SEPA project has been implemented so 
that SEPA applies to payments in euro s to and from Norway, but not to payments in Norwegian 
kroner. The payment system in Norway  comprised 15 licensed payment institutions and 
6 electronic money institutions  at the end of 2016.  
4.137.   The revised directive (PSD2)148, which entered into force on 13 January 2018 in the 
European Union, aims at further integration of the payments market in Europe, a more level 
playing field for all payment services providers, safer and mo re secure payment procedures, 
enhanced consumer protection, and lower costs. PSD2 provides increased access to the banking 
infrastructure for third -party operators. Any business approved as Payment Initiation Service 
Provider (PISP) may, in agreement with the customer, generate a payment from his/her bank 
account without prior agreement between the PISP and the customer's bank.149 Any businesses 
approved as an Account Information Service Provider (AISP) may collect information allowing 
customers to access inf ormation related to their bank accounts in different banks and countries via 
a single platform. Banks will have to develop open source APIs (Application Programming 
Interfaces) to empower financial institutions to provide these new types of services. Among  its 
many new features, PSD2 also includes an Interchange Fee Regulation capping fees levied by card 
issuers on a card acquirer (usually the merchant's bank).  
4.138.   The Norwegian payments system has traditionally been among the most modern and 
efficient domestic  payments systems in the world. Cash is estimated to constitute no more than 
2.4% of the means of payment (M1) in Norway at present, a very low share compared with other 
countries (Chart 4.1 1). Most payments are accordingly effected by payment card or bank  transfer 
(predominantly via the Internet). According to a survey carried out by Norges Bank in 2013, the 
macroeconomic costs of the payments system amounted to approximately NKr  14.5 billion, or 
0.63% of mainland GDP. About 60% of the costs were absorbed by the banks and their suppliers, 
the remaining costs were split roughly equally between vendors and consumers. The estimated 
average cost per transaction was NKr 5.75, with significant variations depending on the method of 
payment (Chart 4.1 2). The most c ost-effective payments (NKr  2.93 per transaction) were carried 
out using the national debit card system (BankAxept).  
Chart 4.11 Cash as a share of means of payment (M1) in selected countries, 2015  
 
Source:  Norges Bank 2017, Retail payment services 2016, No 2.  
4.139.   At the beginning of 2017, mobile payment services were offered by competing solutions, 
primarily Vipps, Mcash and Mobilepay. However, the supply side consolidated during the year with 
Vipps emerging as th e sole application for mobile payment services.150 The mobile payment 
                                                
148 Directive 2015/2366/EU of the European Parliament and of the Council of 25 November 2015 on 
payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and 
Regulation (EU) No. 1093/2010, and repealing Directive 200 7/64/EC.  
149 Used between merchant and customer, this form of payment is an alternative to settlement by card 
or by cash.  
150 Vipps was established by the DNB Group in 2015. The owners of Mcash (Sparebank 1 Gruppen) and 
other savings banks announced in Februar y 2017 that they were purchasing a stake in Vipps and transferring 
 
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%Norway (2016)NorwayCanadaIcelandSwitzerlandEuro areaJapanSingaporeUnited StatesChart 4.[FIN5] Cash as a share of means of payments (M1) in selected countries, 2015
Source:  Norges Bank 2017, Retail payment services 2016, No 2 .WT/TPR/S/373 • Norway  
 
- 148 - 
 
  services have so far been expensive for the banks, as international cards (Visa or Mastercard) 
have been used for the underlying payment transaction. However, costs are expected to decline  
markedly with a switch to the domestic BankAxept. Norwegian banks launched a solution for 
instant payments in 2012. However, the solution exposes banks to credit risk. Norges Bank and 
the banking industry have established a project to resolve the credit r isk issue by the end of 2019. 
The growth of alternative, net -based forms of finance such as crowdfunding, crowdlending, and 
peer-to-peer lending have so far been limited in Norway.  
Chart 4.12 Economic costs o f different payment options, 2007 and 2013  
NKr per transaction  
 
Source:  Norges Bank.  
4.140.   The Money Laundering Act of 15 April 2009 imposes extensive requirements to prevent 
and detect financial transactions related to crime or terrorist activity on the reporting entities in 
Norway. The intergovernmental Financial Action Task Force (FATF) carried out an extensive review 
of the measures taken by Norway, as one of its first such national reviews, in 2014. The FATF 
report noted several good initiatives but a lso significant weaknesses in a number of key areas, a 
lack of overarching national policies and strategies related to preventive measures, and the 
absence of a policy -level coordinating mechanism for anti -money -laundering and anti -terrorist -
financing effo rts.151 The FATF report set in motion a number of initiatives, including the 
establishment of a contact group for the coordination of national measures, the elaboration of a 
national risk assessment of the consequences of money laundering and terrorist finan cing, and the 
creation of a group of legal experts to propose changes in existing legislation. The legal experts 
have also been evaluating the adaptations required in Norway  to implement  the EU's Fourth Anti -
Money Laundering Directive152, which, inter alia , lowers the floor on which cash payments require 
obligations to be placed on dealers in goods (from €15,000 to €10,000) and extends the 
surveillance of transactions to the entire gambling industry (and not just casinos). Actions are also 
being prompted by t he EFTA Surveillance Authority, which has twice referred Norway to the EFTA 
Court of Justice for failure to bring its legislation on anti -money laundering and terrorist financing 
into compliance with EEA law.153 Norway is in the process of following up on th e proposals from 
the group of legal experts regarding implementation of the Fourth Anti -Money Laundering Directive 
and addressing the deficiencies noted in the FATF report.  
                                                                                                                                                  
all business related to Mcash to Vipps. The partners behind the Nordic MobilePay, Nordea and Danske Bank, 
decided in October that they would cease their application in Norway, and negotiate  an agreement with Vipps.  
151 Financial Action Task Force online information. Viewed at: http://www.fatf -
gafi.org/media/fatf/documents/reports /mer4/Mutual -Evaluation -Report -Norway -2014.pdf .  
152 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the 
prevention of the use of the financial system for the purposes of money laundering or terrorist financing, 
amendi ng Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 
2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC.  
153 EFTA Surveillance Authority online information. Viewed at : http://www.eftasurv.int/press --
publications/press -releases/internal -market/anti -money -laundering -and-terrorist -financing -%E2%80%93 -
norway -to-court-for-the-second -time.  
 
0510152025
Cash All cards BankAxept International
cardsBank transfers2007 2013Chart 4.[FIN6] Economic costs of different payment options, 2007 and 2013
Source:  Norges Bank.NKr per transactionWT/TPR/S/373 • Norway  
 
- 149 - 
 
  4.3.2   Distribution services  
4.141.   In 2016, the Norwegian retail sector comprised 71,700 enterp rises. The sector accounted 
for 9.2% of the value added in the Norwegian mainland economy and 14% of total employment. 
Productivity growth in the retail sector has been consistently above the economy's average for 
more than 40 years, and was particularly  strong during the period 1992 -2003, averaging 5.2% per 
year. Even though growth has slowed since then, productivity has continued to grow faster in 
retail trade than in most other sectors.154  
4.142.   The Enterprise Federation of Norway (Virke) estimates that the Norwegian retail market 
represented a turnover of NKr 529 billion in 2016. Even though Norwegian consumers continue to 
spend most of their money in Norway, either by visiting shops (NKr 457 bil lion) or by placing 
orders on the Internet from Norwegian websites (NKr 24 billion), foreign retailers are increasing 
their presence through three channels: (i) shopping during weekend trips or holidays of longer 
duration (NKr 25 billion); (ii) shopping -motivated day trips to border regions (NKr 13 billion); and 
(iii) online shopping from foreign websites (NKr 11 billion in 2016). Private online imports rose by 
225%, nearly three times faster than online shopping from domestic suppliers, between 2011 and 
2016. The growth in online shopping was spectacular compared with the corresponding 15% 
increase in the turnover from physical shopping in Norwegian stores during the same period.  
4.143.   The trend of rapidly increasing online shopping, particularly from sellers ab road, is 
expected to continue in years to come. In this context, Norwegian consumers face a different 
regulatory environment for indirect taxes than their immediate neighbours. In neighbouring 
Sweden, Denmark and Finland, goods and services purchased withi n the European Union are 
subject to VAT and any other taxes on consumption in the country of the seller at the rates 
prevailing in that EU country. No customs procedure is thus applied to cross -border sales within 
the European Union. For sales to Norway, w hether commercial imports or imports for personal use, 
VAT and other indirect consumption taxes are normally zero rated in the country of exportation. 
customs duties (if any), VAT, and other indirect taxes are therefore collected by Norwegian 
Customs at No rwegian rates upon importation. Only de minimis  imports, i.e. consignments for 
personal use valued at less than NKr 350 (including postage, packing and insurance), are admitted 
free of customs duty and VAT.155 Norwegian Customs does not charge any fee for it s processing, 
but transporters may levy charges for their time and efforts spent on customs clearance.  
4.144.   Groceries, which is the largest single sub -sector, accounts for approximately 37% of the 
retail turnover in Norway (Chart 4.1 3). Between 2011 and 2016, a nnual turnover growth in the 
groceries sector averaged 3.6%, which was slightly above the average growth for retail as a whole 
(2.8%).156 The Norwegian groceries market is characterized by a high level of concentration, which 
increased further in 2015 as the  Swedish -based ICA Group decided to withdraw from the 
Norwegian market. At present, three chains dominate the groceries market, of which 
Norgesgruppen is the largest, followed by Coop Norge, and Reitangruppen. A fourth chain 
appealing to the low -price segm ent is also present (Bunnpris), but its market share remains low. 
Although online shopping of groceries is increasing , it still only accounts for 1% of the total 
turnover for groceries.157 Norwegian groceries stores have traditionally been facing some 
compet ition from food and other products sold at petrol stations and, locally, also felt the impact of 
day-trip shopping in Sweden. However, these competitive pressures do not seem to be increasing 
at present. Instead, fast -food, catering, and restaurants appear  to offer the main challenge as an 
alternative to food shopping.  
4.145.   The retail businesses experiencing the fastest growth in Norway are those that have been 
successful in widening their range of goods on offer and/or that have developed online shopping as 
tool to reach their customers. For example, pharmacies have expanded their assortment  to include 
cosmetics, and sports outlets also offer sports clothing and footwear. On average, two thirds of the 
chains engaged in retail trade offer shopping online, but wi th marked disparities between the 
                                                
154 For 2012 -2016, Statistics Norway has estimated the average annual productivity growth in retail 
trade at 2.3% versus 1.3% for the mainland economy as a whole.  
155 Excise duties on imported alcoholic beverages are never waived, and special permission is req uired 
for online shopping of tobacco and tobacco products.  
156 Due to annual growth in online shopping from Norwegian stores averaging 12.9% between 2011 and 
2016, the average growth in retail trade including online shopping was 3.1% during the period.  
157 Among the 11 existing groceries chains, only 2 of them offer online shopping at present.  WT/TPR/S/373 • Norway  
 
- 150 - 
 
  various subsectors. Growth has been sluggish in businesses facing a changing market, e.g. the 
effect of streaming on the demand for audio/video products. For clothing and footwear stores, 
competition has become more intens e from online shopping, holiday purchasing, and other 
speciali zed retailers (such as sports shops) making inroads into their traditional business.  
Chart 4.13 Retail trade in Norway, 2016  
Market shares (%)  
 
Source:  The Enterprise Federation of Norway (Virke).  
 
Groceries/Kiosks
36.9%
Petrol stations
9.6%
Home 
improvement
7.4%Clothing/fashion
6.8%Pharmacies
4.4%Electronics
4.4%Furniture 3.8%Sports 3.3%General stores 2.8%Cosmetics 1.0%Footwear 0.9%Online shopping 
3.9%Other
14.9%Chart 4.[Services] Retail trade in Norway, 2016
The Enterprise Federation of Norway (Virke). Source: Total turnover
Nkr 475.5 billionMarket shares (per cent)WT/TPR/S/373 • Norway  
 
- 151 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by group of products, 2012 -16 
  2012  2013  2014  2015  2016  
Total exports (US$ billion)  161.0  155.4  144.6  104.8  89.6 
 % of total exports  
Total primary products  81.5 80.2 79.0 74.1 72.4 
Agriculture  6.5 7.8 8.8 10.3 13.5 
Food 6.0 7.2 8.1 9.5 12.6 
03 Fish  5.4 6.6 7.3 8.5 11.9 
0341 - Fish, fresh or chilled  2.8 3.9 4.2 5.0 7.3 
0342 - Fish, frozen  1.0 1.1 1.2 1.2 1.6 
0345 - Fish fillets, fresh or chilled, and 
other fish meat, fresh, chilled or frozen  0.5 0.6 0.7 0.8 1.2 
0344 - Fish fillets, frozen  0.4 0.4 0.5 0.6 0.7 
0351 - Fish, dried, salted or in brine, 
but not smoked  0.5 0.4 0.5 0.6 0.6 
Agricultural raw material  0.5 0.6 0.7 0.8 0.9 
Mining  75.0 72.4 70.2 63.8 58.9 
Ores and other minerals  0.9 0.9 0.9 0.9 0.5 
Non-ferrous metals  4.2 3.9 4.4 5.2 5.3 
6841 - Aluminium and aluminium 
alloys, unwrought  2.1 1.9 2.2 2.6 2.7 
6831 - Nickel and nickel alloys, 
unwrought  1.0 0.9 1.0 1.1 1.0 
6842 - Aluminium and aluminium 
alloys, worked  0.5 0.5 0.6 0.7 0.7 
Fuels 69.8 67.6 64.9 57.7 53.0 
3330 - Petroleum oils and oils obtained 
from bituminous minerals, crude  34.0 32.0 32.0 24.2 25.5 
3432 - Natural gas, in the gaseous 
state 25.9 26.3 23.0 25.1 20.4 
334 - Petroleum oils and oils obtained 
from bituminous minerals (other than 
crude)  5.6 5.4 5.2 4.9 3.6 
3431 - Natural gas, liquefied  1.1 1.0 1.6 1.3 1.0 
3421 - Propane, liquefied  1.3 1.1 1.2 0.8 0.8 
3510 - Electric current  0.5 0.5 0.6 0.5 0.7 
3425 - Butanes, liquefied  1.0 1.0 1.0 0.6 0.6 
Manufactures  14.9 16.2 17.5 21.5 22.7 
Iron and steel  1.0 1.0 1.1 1.2 1.2 
6715 - Other ferro -alloys  0.5 0.5 0.6 0.6 0.6 
Chemicals  2.2 2.3 2.7 3.3 3.9 
5147 - Carboxyamide -function 
compounds  0.4 0.5 0.5 0.8 1.0 
Other semi -manufactures  1.4 1.8 1.6 2.2 2.2 
Machinery and transport equipment  7.9 8.7 9.4 11.7 12.1 
Power generating machines  0.5 0.4 0.6 0.8 0.9 
Other non -electrical machinery  3.5 3.9 4.2 5.2 4.5 
Agricultural machinery and tractors  0.1 0.1 0.1 0.1 0.1 
Office machines & telecommunication 
equipment  0.8 0.8 0.9 1.1 1.0 
Other electrical machines  1.3 1.5 1.5 1.7 1.0 
7731 - Insulated wire, cable (including 
co-axial cable) and other insulated 
electric conductors  0.4 0.5 0.4 0.5 0.6 
Automotive products  0.5 0.5 0.5 0.7 0.9 
Other transport equipment  1.3 1.5 1.7 2.1 2.8 
7932 - Ships, boats and other vessels  0.8 0.8 0.9 0.8 2.0 
Textiles  0.1 0.1 0.1 0.2 0.2 
Clothing  0.1 0.1 0.1 0.1 0.1 
Other consumer goods  2.1 2.2 2.4 2.9 3.0 
Other  3.6 3.6 3.6 4.4 4.9 
Source:  UNSD,  Comtrade database (SITC Rev.3); and Statistics Norway. Viewed at: http://www.ssb.no/en . 
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  Table A1. 2 Merchandise imports by group of products, 2012 -16 
  2012  2013  2014  2015  2016  
Total imports (US$ billion)  87.3 89.8 89.4 77.2 72.8 
 (% of total imports ) 
Total primary products  23.0 23.0 21.5 20.1 16.2 
Agriculture  10.3 10.5 10.7 10.8 8.4 
Food 9.0 9.3 9.4 9.5 7.1 
0989 - Food preparations, n.e.s.  0.7 0.8 0.8 0.8 0.7 
Agricultural raw material  1.3 1.2 1.3 1.3 1.3 
Mining  12.7 12.5 10.9 9.3 7.8 
Ores and other minerals  4.6 3.9 4.0 3.8 3.0 
2842 - Nickel mattes, nickel oxide sinters  2.6 2.1 2.1 1.7 1.3 
2852 - Alumina (aluminium oxide)  0.8 0.8 0.8 1.0 0.9 
Non-ferrous metals  1.8 1.5 1.6 1.2 1.3 
Fuels 6.2 7.1 5.3 4.3 3.5 
334 - Petroleum oils and oils obtained from 
bituminous minerals (other than crude)  3.8 4.1 3.2 2.8 2.5 
Manufactures  75.1 75.3 77.0 78.2 78.8 
Iron and steel  2.7 2.5 2.9 2.4 2.3 
6791 - Tubes, pipes and hollow profiles, 
seamless, of iron or steel  0.8 0.7 0.8 0.7 0.7 
Chemicals  9.0 8.9 9.1 9.1 9.7 
5429 - Medicaments, n.e.s.  1.5 1.4 1.5 1.4 1.6 
Other semi -manufactures  9.6 9.5 9.7 9.5 9.4 
6911 - Structures and parts of structures  1.4 1.2 1.4 1.5 1.2 
6353 - Builders' joinery and carpentry of 
wood  0.6 0.7 0.7 0.6 0.7 
Machinery and transport equipment  38.3 38.7 39.4 40.7 40.3 
Power generating machines  1.3 1.1 1.2 1.4 1.5 
Other non-electrical machinery  9.7 10.1 10.2 9.9 9.6 
Agricultural machinery and tractors  0.8 0.8 0.7 0.7 0.8 
Office machines & telecommunication 
equipment  7.3 7.1 6.9 6.7 6.8 
7643 - Transmission apparatus for radio -
telephony, radio -telegraphy, etc.  1.2 1.3 1.2 1.3 1.4 
7522 - Digital automatic data -processing 
machines  1.2 1.2 1.2 1.0 1.0 
Other electrical machines  4.5 4.9 5.1 4.8 5.2 
Automotive products  9.3 9.6 9.2 9.3 11.4 
7812 - Motor vehicles for the transport of 
persons, n.e.s.  6.0 6.3 6.1 6.4 7.0 
7821 - Motor vehicles for the transport of 
goods  1.7 1.6 1.5 1.4 1.7 
7843 - Other parts and accessories of the 
motor vehicles  0.9 0.9 1.0 1.0 1.1 
Other transport equipment  6.1 6.1 6.7 8.5 5.9 
7932 - Ships, boats and other vessels  2.2 2.7 1.8 2.1 3.6 
Textiles  1.0 1.0 1.1 1.1 1.1 
Clothing  3.1 3.1 3.0 3.1 3.3 
Other consumer goods  11.4 11.5 11.8 12.3 12.7 
8215 - Furniture, n.e.s., of wood  0.8 0.8 0.8 0.8 0.8 
8211 - Seats  0.7 0.7 0.7 0.7 0.7 
Other  1.9 1.7 1.5 1.7 5.0 
Source: UNSD, Comtrade database (SITC Rev.3); an d Statistics Norway. Viewed at: http://www.ssb.no/en . 
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  Table A1. 3 Merchandise exports by destination, 2012 -16 
  2012  2013  2014  2015  2016  
Total exports (US$ billion)  161.0  155.4  144.6  104.8  89.6 
 (% of total exports)  
Americas  6.8 6.4 5.5 6.6 7.1 
United States  5.0 4.4 3.7 4.4 4.2 
Other America  1.7 2.0 1.8 2.2 2.9 
Canada  0.5 0.9 0.5 0.7 1.1 
Brazil  0.6 0.6 0.8 0.6 0.5 
Europe  83.0 83.6 83.6 80.8 80.1 
EU(28)  81.3 82.1 81.8 79.4 78.2 
United Kingdom  26.5 24.1 22.7 20.1 20.7 
Germany  12.0 17.2 16.9 17.8 14.3 
Netherlands  12.2 10.9 13.3 11.0 10.6 
France  6.3 7.4 6.1 6.6 6.8 
Sweden  6.3 5.8 5.7 5.9 6.4 
Belgium  2.9 5.2 4.7 4.9 4.4 
Denmark  4.1 3.7 3.8 3.9 4.0 
Poland  1.5 1.8 1.8 1.9 2.3 
Spain  1.6 1.2 1.7 1.5 1.8 
Ireland  1.0 1.0 0.9 1.4 1.6 
Italy 2.3 0.8 0.8 0.9 1.3 
Finland  1.5 1.0 1.5 1.1 1.3 
Lithuania  0.2 0.3 0.3 0.5 0.7 
Portugal  0.3 0.3 0.4 0.5 0.6 
EFTA 0.9 0.8 0.9 0.8 1.1 
Other Europe  0.8 0.8 0.9 0.6 0.8 
Turkey  0.6 0.6 0.7 0.5 0.6 
Commonwealth of independent states (CIS)  1.2 1.3 0.9 0.7 0.9 
Africa  1.0 1.1 1.4 1.6 2.3 
Middle East  0.5 0.5 0.5 0.7 0.7 
Asia 7.6 7.1 8.1 9.6 8.9 
China  1.5 1.8 2.3 2.9 2.6 
Japan  0.9 0.8 1.1 1.2 1.4 
Other Asia  5.2 4.5 4.7 5.6 4.9 
Korea, Republic of  2.8 1.7 1.6 2.0 1.4 
Singapore  0.8 1.1 1.3 1.3 1.1 
Other  0.0 0.0 0.0 0.0 0.0 
Source:  UNSD, Comtrade database ; and Statistics Norway. Viewed at: http://www.ssb.no/en . 
 
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  Table A1. 4 Merchandise imports by origin, 2012 -16 
  2012  2013  2014  2015  2016  
Total imports (US$ billion)  87.3 89.8 89.4 77.2 72.8 
 (% of total imports)  
Americas  11.3 10.3 11.5 11.5 11.1 
United States  5.4 5.4 6.2 6.5 6.4 
Other America  5.9 4.9 5.3 5.0 4.6 
Canada  2.9 2.2 2.6 2.0 1.8 
Brazil  1.7 1.5 1.4 1.7 1.5 
Europe  66.9 67.5 66.3 63.3 65.3 
EU(28)  64.2 64.7 63.5 60.7 62.5 
Germany  12.4 12.4 11.8 11.3 12.0 
Sweden  13.5 13.3 12.2 11.5 11.9 
Denmark  6.2 6.1 6.1 5.7 5.6 
United Kingdom  6.1 6.4 6.5 6.4 5.0 
Netherlands  3.9 3.9 3.7 3.6 4.0 
Poland  3.0 3.2 3.2 3.0 3.5 
France  3.2 3.3 3.4 3.3 3.3 
Italy 2.8 3.0 3.1 3.0 3.0 
Finland  2.8 2.5 2.3 2.2 2.4 
Spain  1.4 1.6 1.8 1.8 2.3 
Belgium  2.0 1.9 1.8 1.7 1.8 
Czech Republic  1.0 1.1 1.0 1.0 1.1 
Lithuania  0.8 0.9 1.0 1.0 1.1 
Estonia  0.7 0.8 0.8 0.8 0.8 
EFTA 1.7 1.6 1.6 1.5 1.5 
Switzerland  1.4 1.3 1.4 1.2 1.2 
Other Europe  1.0 1.2 1.1 1.1 1.2 
Turkey  0.9 1.1 1.0 0.9 1.1 
Commonwealth of independent states (CIS)  2.6 2.1 2.0 2.1 1.8 
Russian Federation  2.0 1.7 1.8 1.8 1.6 
Africa  1.7 2.5 1.7 1.5 1.3 
Middle East  0.2 0.2 0.5 0.4 0.3 
Asia 17.3 17.3 17.9 21.3 20.2 
China  9.3 9.2 9.5 10.5 11.0 
Japan  2.3 2.2 2.3 2.2 2.3 
Other Asia  5.7 5.9 6.2 8.6 6.8 
Korea, Republic of  1.3 1.9 1.7 4.2 2.8 
Source:  UNSD, Comtrade database ; and Statistics Norway. Viewed at: http://www.ssb.no/en . 
 
 
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  Table A3. 1 EFTA Surveillance Authority - State aid register, 2016 -17 
Title of scheme  Decision  Reference  Press 
release  OJ reference  
2017      
Tax reductions on zero 
emission vehicles  No 
objections  228/17/COL  of 
19.12.17  PR(17)41   
Employee share options  No 
objections  225/17/COL  of 
15.12.17  PR(17)39   
The Norwegian Special Tax 
System for Shipping 
2018-2027 No 
objections  214/17/COL  of 
14.12.17  PR(17)38   
Amendment to the tax and 
social security 
contributions refund 
scheme for employing 
seafarers 2016-2026 
(NIS deep sea)  No 
objections  156/17/COL  of 
14.9.17  PR(17)28  C 429 14.12.2017 p. 27  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C1214(01)&from=EN ) 
Continued financing of CO 2 
Technology Centre 
Mongstad  No 
objections  146/17/COL  of 
8.8.17  PR(17)27  C 377 9.11.2017 p. 9  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=uriserv:OJ.
C_.2017.377.01.0009.01.ENG&t
oc=OJ:C:2017:377:TOC ) 
Hydrogen refuelling 
stations in Akershus  No 
objections  145/17/COL  of 
25.7.17  PR(17)26  C 377 9.11.2017 p. 8  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=uriserv:OJ.
C_.2017.377.01.0008.01.ENG&t
oc=OJ:C:2017:377:TOC ) 
Prolongation and 
modification of the Charter 
Fund Scheme for Northern 
Norway  No 
objections  143/17/COL  of 
13.7.17  PR(17)23  C 333 5.10.2017 p. 8  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C1005(01)&from=EN ) 
Individual aid in favour of 
Ranheim Energi AS  No 
objections  112/17/COL  of 
27.6.17  PR(17)21  C 313 21.9.2017 p. 4  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0921(02)&from=EN ) 
Extend the special tax 
regime for shipping  No 
objections  109/17/COL  of 
23.6.17  PR(17)20  C 313 21.9.2017 p. 3  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0921(01)&from=EN ) 
Increased budget of an aid 
scheme for short sea 
shipping services  No 
objections  103/17/COL  of 
20.6.17  PR(17)19  C 303 14.9.2017 p. 5  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=uriserv:OJ.
C_.2017.3 03.01.0005.01.ENG&t
oc=OJ:C:2017:303:TOC ) 
The exemption rule for 
ambulant services under 
the scheme on 
differentiated social 
security contributions 
2014-2020 Positive  094/17/COL  of 
31.5.17  PR(17)18   
The Coastal Agreement for 
Hurtigruten Maritime 
Services 2012 -2019 Positive  070/17/COL  of 
29.3.17  PR(17)11   
Alleged aid involved in an 
exemption from air 
passenger tax for 
departures from 
Norwegian airports  No aid  064/17/COL  of 
29.3.17  PR(17)12  C 198 22.6.2017 p. 5  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0622(02)&from=EN ) 
The financing of "Concept 
and FEED Studies" on full -
scale CO 2 capture and 
storage  No 
objections  045/17/COL  of 
16.3.17  PR(17)09  C 198 22.6.2017 p. 4  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0622(01)&from=EN ) 
2016      
Demo Scheme 2017 -2022 
by Enova  No 
objections  234/16/COL  of 
15.12.16  PR(16)56  C 90 23.3.2017 p. 6  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0323(03)&from=EN ) WT/TPR/S/373 • Norway  
 
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  Title of scheme  Decision  Reference  Press 
release  OJ reference  
ECO-INN Scheme 2017 -
2022 by Enova  No 
objections  233/16/COL  of 
15.12.16  PR(16)56  C 90 23.3.2017 p. 5  (http://eur -
lex.europa.eu/legal -
content /EN/TXT/PDF/?uri=CELEX
:E2017C0323(02)&from=EN ) 
Prolongation of the 
alternative fuels 
infrastructure programme 
2017-2022 by Enova  No 
objections  232/16/COL  of 
15.12.16  PR(16)56  C 90 23.3.2017 p. 4  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0323(01)&from=EN ) 
An aid scheme for a 
reduced rate of taxation 
on electricity directly 
provided to vessels  No 
objections  216/16/COL  of 
1.12.16  PR(16)55  C 81 16.3.2017 p. 6  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0316(02)&from=EN ) 
Individual aid in favour of 
Arba Follum AS for the 
construction of a 
demonstration plant for 
the production of black 
wood pellets  No 
objections  210/16/COL  of 
28.11.16  PR(16 )54 C 81 16.3.2017 p. 5  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0316(01)&from=EN ) 
An aid scheme for short 
sea shipping services  No 
objections  208/16/COL  of 
21.11.16  PR(16)51  C 42 9.2.2017 p. 4  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0209(02)&from=EN ) 
Six month prolongation of 
the special tax system for 
shipping  No 
objections  201/16/COL  of 
11.11.16  PR(16)50  C 42 9.2.2017 p. 3  (http://eur -
lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2017C0209(01)&from=EN ) 
The pricing mechanism for 
market loans of Export 
Credit Norway  No aid  165/16/COL  of 
12.9.16  PR(16)39  C 447 1.12.2016 p. 12  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1201(02)&from=EN ) 
Alleged state aid involved 
in levies imposed on fish 
exporters and exported 
fish products  Closing case  Document No 
810449  of 
27.7.16  - - 
 
Related EFTA Court procedure 
E-12/16  
Alleged state aid arising 
from the Norwegian import 
duty exemption for certain 
low-value goods imported 
by final consumers  No 
objections  155/16/COL  of 
13.7.16  PR(16)31  C 434 24.11.2016 p. 5  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1124(02)&from=EN ) 
Amendment to the 
Norwegian Tax Act 
concerning changes in the 
depreciation rules for wind 
power plants  No 
objections  150/16/COL  of 
6.7.16  PR(16)30  C 434 24.11.2016 p. 4  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1124(01)&from=EN ) 
Sale of four properties in 
Hauskvartalet in Oslo  No aid  127/16/COL  of 
15.6.16  PR(16)27  C 413 10.11.2016 p. 6  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1110(02)&from=EN ) 
Amendments to the 
production grant scheme 
for news and current 
affairs media  No 
objections  126/16/COL  of 
15.6.16  PR(16)26  C 413 10.11.2016 p. 5  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1110(01)&from=EN ) 
Aid in favour of Glencore 
Nikkelverk AS for the 
construction of a copper 
production demonstration 
plant No 
objections  125/16/COL  of 
25.5.16  PR(16)23  C 374 13.10.201 6 p. 4  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1013(02)&from=EN ) 
Aid in favour of Alcoa 
Norway ANS for the 
construction of a 
demonstration plant  No 
objections  124/16/COL  of 
25.5.16  PR(16)24  C 374 13.10.2016 p. 3  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1013(01)&from=EN ) 
The tax refund scheme for 
employing seafarers 2016 -
2026 No 
objections  085/16/COL  of 
27.4.16  PR(16)14  C 386 20.10.2016 p.13  
(http:/ /eur-lex.europa.eu/legal -
content/EN/TXT/?qid=15018530
19434&uri=CELEX:E2016C1020(
01)) WT/TPR/S/373 • Norway  
 
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  Title of scheme  Decision  Reference  Press 
release  OJ reference  
An aid Scheme for 
investment in European 
Rail Traffic Management 
System (ERTMS)   No 
objections  063/16/COL  of 
16.3.16  PR(16 )10 C 357 29.9.2016 p. 29  
(http://eur -lex.europa.eu/lega l-
content/EN/TXT/PDF/?uri=CELEX
:E2016C0929(01)&from=EN ) 
A zero VAT rate for 
electronic news services  No 
objections  023/16/COL  of 
25.1.16  PR(16)02  C 396 27.10.2016 p. 6  
(http://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX
:E2016C1027(01)&from=EN ) 
Source:  http://www.eftasurv.int/state -aid/state -aid-register/norway/ . 
 
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