WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/NOR/24 
26 March 2012 
 (12-1587) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the UNITED STATES1 Regarding the 
New and Full Notification of NORWAY2 
  
 The following communication, dated 23 March 2012, is being circulated at the request of the Delegation of Norway. 
 
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Question 1 
 
CO
2 Technology Centre Mongstad (TCM) Project 
  According to Norway's notification, the TCM project is operated by Gassnova SF (on 
behalf of the State), Statoil, Shell and SASOL.  Could Norway please explain which entity is responsible for the construction of the TCM project?  Please explain whether there is any 
requirement to locally source input s or parts needed for the construction of the TCM project?  
 
Reply 
 
 The State, by the Ministry of Petroleum and Energy, is responsible for financing the State's share of the Technology Centre Mongstad.  The State's interests in TCM are managed by the stated 
owned company Gassnova SF. It is TCM DA, the jo int venture between Gassnova (on behalf of the 
Norwegian state), Statoil, Shell and Sasol, which ow ns and is responsible fo r the construction of the 
TCM. There are no requirements to locally source inputs or parts.   Question 2  
Regional Development Grant 
 
 Under this program, the amount of the grant provided to firms who are located in the 
assisted areas can vary between the regions.  Please explain how the amounts provided to the 
firms is decided and if there is eligibility criteria is different for the various amounts provided.  
Also, please explain is meant by a "cluster"?  
 
                                                      
1 G/SCM/Q2/NOR/23. 
2 G/SCM/N/220/NOR. G/SCM/Q2/NOR/24 
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  Reply 
 
 Under the scheme regional investment grants , the maximum aid intensity varies between the 
regions. The aid intensity is set in accordance with the EFTA Surveillance Authorities guidelines for 
regional aid (cf information in the Notification regarding the Agreement on the European Economic 
Area (EEA):  Through Norway's participation in  the EEA, Norwegian legislation, under which 
subsidies are granted, is consistent with the legisl ation, and soft law of the European Union (EU).) 
  The aid intensities are firstly differentiated on the basis of the severity of regional 
development challenges, such as demographic deve lopment, employment and accessibility.  Within 
the limits set through the scheme, the granting au thority, Innovation Norway, thereafter and on a case 
by case basis assesses how much aid is necessary to accomplish a project. 
 
 A cluster is defined as a geographical concentra tion of related firms a nd institutions within a 
sector, area of technology or value chain.  A dy namic co-operation between firms, research and 
development institutions and public institutions – often referred to as the triple helix, has been central 
to the Norwegian policy to promote clusters.  With in the context of the aid schemes notified, the 
recipient of aid is the organisation that is in ch arge of facilitating co-operation within the cluster. 
 Question 3  
National Innovation Scheme 
 
 Under this program, subsidies are partly  earmarked for the "maritime industry".  
Please explain whether this includes fishing operations.  If so, please explain exactly what type 
of aid is being provided to fishing operations (i .e. grants, guarantees and/or loans) under this 
program.  
 
Reply 
 
 In principle fishing operations fall within the scope of the national innovation scheme and 
may receive loans, guarantees and grants. However, in  reality aid is not granted to fishing operations 
because innovation Norway interprets the wording "mar itime" so that it excludes fishing operations.  
 
Question 4 
 
 Please explain whether the subsidies provi ded under this program provide support to 
offset the higher fuel prices?  
 Reply 
  The subsidies provided under the national innovation scheme are not provided to offset the 
higher fuel prices.  Price Reduction Scheme for Processed Foods 
 
Question 5 
  According to publically available information Norway maintains a price reduction 
regime that includes subsidies for using certai n domestically-produced raw materials in 
processed foods.  Products for which such subs idies are paid include chocolate, sweets and ice 
cream (for milk and glucose), and pizza (for cheese and meat).  The purpose of the system is to 
help compensate the domestic food processing industry for the high costs of domestic raw  G/SCM/Q2/NOR/24 
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  material.  How does Norway view this program in the context of Norway's obligations under 
Article 3.1(b) of the SCM Agreement?  
Reply 
  The Norwegian food processing industry bases its activity primarily on the processing of 
products from Norwegian agriculture, while the prim ary producers depend on the industry to ensure 
marketing of the volumes produced.  This close re lationship between the primary production and the 
processing industry is therefore taken into account when designing the agricultural policy instruments 
in favour of the agricultural producers.  
  Given the limited competiveness of Norwegia n agriculture, a comprehensive package of 
measures are required in order to maintain a vi able agricultural sector throughout the country. 
Measures may include administered prices (target pri ces) accompanied by i.e. measures to ensure the 
marketing of the volumes produced at prices as close as practicable to the administered prices.  For 
products not subject to administered prices, budge tary payments, including marketing measures, are 
also essential.  These measures, including budgetary  payments for products used in processed 
products, together with other measures in favour of agricultural producers, are notified in accordance 
with our WTO obligations.  Please see our notifica tions pursuant to the Agreement on Agriculture.  
  
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