RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/205 
17 September 2008  
 
(08-4276) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
NORWAY 
 
  
 
This report, prepared for the fifth 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 
Ms. Katie Waters (tel. 022 739 5067), Mr. Alberto Bueno (tel. 022 739 6392), 
and Mr. Raymundo Valdés (tel. 022 739 5346). 
 
Document WT/TPR/G/205 contains the policy statement submitted by Norway. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Norway. Norway WT/TPR/S/205 
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CONTENTS 
    Page 
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) T RADE POLICY AND INVESTMENT FRAMEWORK  vii 
 (3) M ARKET ACCESS FOR GOODS  viii 
 (4) O THER MEASURES AFFECTING TRADE  ix 
 (5) S ECTORAL POLICIES  ix 
I. ECONOMIC ENVIRONMENT 1 
 (1) O VERVIEW  1 
 (2) S TRUCTURE OF THE ECONOMY , OUTPUT AND EMPLOYMENT  1 
 (3) M ONETARY AND EXCHANGE RATE POLICIES  4 
 (4) F ISCAL POLICY  6 
 (5) B ALANCE OF PAYMENTS  7 
 (6) T RADE AND INVESTMENT FLOWS  9 
 (i) Developments in merchandise trade 9  (ii) Developments in trade in services 9 
 (iii) Foreign direct investment 10 
 (7) O
UTLOOK  10 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 12 
 (1) O VERVIEW  12 
 (2) T RADE POLICY FORMULATION AND IMPLEMENTATION  12 
 (i) Institutional framework 12 
 (ii) Trade policy formulation, implementation and objectives 14 
 (3) F OREIGN INVESTMENT REGIME  14 
 (4) I NTERNATIONAL RELATIONS  15 
 (i) World Trade Organization 15  (ii) Preferential trade agreements 17 
 (iii) Generalized System of Preferences (GSP) 20 
 (iv) Aid for Trade 21 
III. TRADE POLICIES AND PRACTICES BY MEASURE 24 
 (1) O
VERVIEW  24 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  24 
 (i) Procedures and documentation 24 
 (ii) Customs valuation 26 
 (iii) Rules of origin 27  (iv) Tariffs 28 
 (v) Other charges affecting imports 31 
 (vi) Import licensing, controls and prohibitions 32 
 (vii) Contingency measures 33 
 
 WT/TPR/S/205 Trade Policy Review 
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    Page 
 (viii) Technical regulations and standards 35 
 (ix) Sanitary and phytosanitary measures 37 
 (3) M EASURES DIRECTLY AFFECTING EXPORTS       4 0  
 (i) Procedures and charges 41 
 (ii) Export prohibitions, restrictions and licensing 41 
 (iii) Subsidies and fiscal concessions 42  (iv) Export finance, insurance and guarantees 43 
 (v) Export promotion and marketing assistance 44 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  45 
 (i) Legal framework for businesses 45 
 (ii) Competition policy and price controls 48 
 (iii) Incentives 50  (iv) State-trading, state owne d enterprises and privatization 56 
 (v) Government procurement 58 
 (vi) Intellectual property rights 61 
IV. TRADE POLICIES BY SECTOR 66 
 (1) O
VERVIEW  66 
 (2) A GRICULTURE  66 
 (i) Features 67 
 (ii) Border measures 70  (iii) General support 73 
 (iv) Policies by group of products 76 
 (3) F
ORESTRY  78 
 (4) F ISHING AND AQUACULTURE  80 
 (i) Main features 80 
 (ii) Institutional and legal framework 81 
 (5) E NERGY   83 
 (i) Overview 83 
 (ii) Hydrocarbons 84  (iii) Electricity 86 
 (6) M
ANUFACTURING  88 
(7) S ERVICES  89 
 (i) Main features 89 
 (ii) Financial services 90 
 (iii) Telecommunications 94  (iv) Maritime transport 96 
 (v) Professional services 99 
 (vi) Air transport 101 
 
ANNEX IV.1 Traffic coverage and main characteristics in Norway's 
  air services agreements 105 
REFERENCES   109 
APPENDIX TABLES  113 
 Norway WT/TPR/S/205 
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TABLES 
    Page 
I. ECONOMIC ENVIRONMENT 
 I.1 Basic economic indicators, 2004-08 2 
I.2 GDP growth measured by expenditure, 2004-08 3 
I.3 Main monetary indicators, 2004-08 5 I.4 Fiscal accounts of the non-financial Ge neral Government, fiscal years 2004-08 6 
I.5 Balance of payments, 2004-08 8 
I.6 Trade in services, 2004-08 10  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 II.1 Selected Notifications to the WTO, January 2004-June 2008 16 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
III.1 Structure of the tariff schedule, 2004 and 2008      29 
III.2 Summary analysis of the MFN tariff, 2008 29 
III.3 VAT rates, March 2008 32 
III.4 Import prohibitions and licensing requirements, 2008 33 I I I . 5  O t h e r  t a x e s  a n d  f e e s ,  2 0 0 8          3 9
 
III.6 Export prohibitions and licensing requirements, 2008      41 III.7 Export insurance and guarantee prog rammes administered by GIEK, 2008 44 
III.8 Principal business structures and selected requirements, 2008 46 
III.9 Industry-wide and selected sector-specific support programmes, 2005 and 2006   51
 
III.10 Main state-owned enterprises in terms of equity, June 2008 57 
III.11 Overview of IPR protection provided by Norway's legislation, 2008 63 
 
IV. TRADE POLICIES BY SECTOR  
IV.1 Production income, 2004-05        67
 
IV.2 Key indicators on selected domestically produced products, (average 2004-06)   68 
IV.3 Main elements of agri cultural agreements, 2004-08 69  
IV.4 Tariff quotas and import volume 71 
IV.5 Product-specific Aggregate Measurem ent of Support (AMS), 2002-04    75 
IV.6 Measures exempt from the reduction commitment, 2002-04     75 
IV.7 Export subsidies, 2002-04         76 
IV.8 Assistance to the forestry subsector, 2004-07       79 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports by group of products, 2004-07 115 
AI.2 Merchandise imports by group of products, 2004-07 116 
AI.3 Merchandise exports by trading partner, 2004-07 117 
AI.4 Merchandise imports by trading partner, 2004-07 118 WT/TPR/S/205 Trade Policy Review 
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    Page 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 AIII.1 Tariffs under selected prefer ential agreements, 2008      119 
AIII.2 Main excise duties, 2008         125
 
 
IV. TRADE POLICIES BY SECTOR 
 
AIV.1 Norway's specific commitments under the GATS, 2008     126  Norway WT/TPR/S/205 
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SUMMARY OBSERVATIONS 
1. Norway's standard of living is among 
the world's highest, and the domestic economy has performed strongly since its previous 
Trade Policy Review in 2004.  Norway's 
enviable economic position is due in large part 
to the profits accrued from oil and gas exports, a generally liberal import regime that facilitates the translation of these profits into 
consumer welfare gains, and sound 
macroeconomic policies.  Market access for non-agricultural products is all but fully open;  however, domestically produced agricultural goods remain heavily assisted, contributing significantly to high food prices.  Taking steps 
to reduce such assistance would align 
agricultural policy with the market-based solutions pursued in other sectors, which have been key to Norway's prosperity. 
2. Norway has continued to undertake 
reforms during the period under review, often 
driven by its participation in the European Economic Area (EEA) Agreement.  This participation has helped to add flexibility to the Norwegian economy and enhance market competition.  However, it has also widened the 
gap between the treatment Norway grants to 
its EEA and other WTO partners.  Closing this gap by applying reforms on an MFN basis, and securing them in the WTO, would help prevent trade and investment distortions.  It would also 
help Norway prepare for a future when natural 
wealth may play a smaller role in its economy, and strengthen the multilateral trading system to which Norway has demonstrated a long-standing commitment.  
(1) E
CONOMIC ENVIRONMENT  
3. The Norwegian economy experienced 
strong economic expansion during the period under review.  Lower import prices, higher export prices for hydrocarbon products, and rising productivity have boosted domestic 
demand.  As a result, Mainland GDP 
(domestic product excluding oil and gas activities) expanded at an average of 5.2% per year over 2004-07.  This has supported the continued rise in Norway's living standards, with per capita GDP at just over US$82,000 in 
2007. 
4. Norway's service sector has continued 
to expand, accounting for some 66% of GDP 
in 2007.  The economic weight of activities 
related to petroleum and natural gas extraction has decreased but these activities remain of 
great importance, accounting for 21% of GDP, 25% of public revenues, and 58% of 
merchandise exports in 2007.  The 
composition and direction of Norway's merchandise trade did not change significantly over 2004-07.  Exports are dominated by commodities, while close to 80% of Norway's imports consist of manufactured goods.  
Norway's main trading partners are the 
members of the European Communities (EC).  
5. Inflation has been kept in check, due 
in part to declining import prices, increasing domestic competition, and large inflows of 
foreign labour.  Muted inflationary pressure 
has permitted the Central Bank to keep interest rates low, which in turn has supported economic expansion. Unemployment has fallen to very low levels (2.5%).  Fiscal policy has been associated with large budget 
surpluses, which are being saved in a fund 
maintained abroad to smooth economic fluctuations.  However, there are signs that real GDP growth has reached its potential, and that economic growth will slow down.   
(2) T
RADE POLICY AND INVESTMENT 
 F RAMEWORK  
6. Norway grants at least MFN treatment 
to all its trading partners.  No significant changes have been in troduced to Norway's 
general legal framework since its last Review 
in 2004.  Norway acknowledges that trade plays an important role in its economic prosperity, and considers that a well functioning and competitive domestic environment goes hand-in-hand with a binding 
and predictable open trade regime. 
7. Norway participates actively in the 
multilateral trading system.  In the context of the Doha Development Agenda (DDA), WT/TPR/S/205 Trade Policy Review 
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Norway has presented several proposals 
individually and together with other Members.  It has also submitted numerous notifications to the WTO, although a small number are lagging 
in areas such as agriculture, state trading, and 
import licensing.  Norway has been involved in multilateral dispute settlement procedures in two cases as a respondent and in ten cases as a third party.  It is an active participant in the 
WTO's work on aid for trade and a significant 
provider of assistance to developing countries;  it has decided to increase its contribution to aid for trade in 2008, mostly through multilateral channels. 
8. Norway sees its membership in the 
EEA as an essential complement to the 
multilateral trading system.  Norway's trade-related regulations ar e largely implemented 
within the context of its EEA membership.  In the context of the European Free Trade 
Association (EFTA), Norway is part of an 
expanding network of free-trade agreements.  This network includes FTAs with 16 trading partners;  six were signed during the period under review. 
9. Norway's GSP scheme grants duty-
free and quota-free access to all imports 
originating in LDCs;  in 2008, changes were introduced to expand this treatment to 14 low income developing countries.  For imports originating in other developing countries 
virtually all industrial goods enter duty free 
but agricultural products are subject to particular tariff reduction schemes.  
10. In general, Norway grants national 
treatment to foreign investors.  It maintains 
restrictions on foreign investment in fisheries, 
audiovisual services, and maritime and air transport;  with the exception of certain restrictions in the fisheries sector, these do not apply to investors from EEA members.  The participation of domest ic and all foreign 
investors is restricted by de jure  State 
monopolies in certain postal and railway services, and in the retail sale of alcoholic beverages.  Additionally, in practice, the participation of private investors is dampened 
by the significant shares the State holds in large companies in sectors including 
telecommunications, electricity, financial services, and petroleum and gas extraction. 
(3) M
ARKET ACCESS FOR GOODS  
11. Norway has not made significant 
changes to customs procedures or documentation since 2004;  new legislation to come into force in 2009 is not expected to introduce substantial changes.  However, 
increased security measures are foreseen, 
reflecting developments in the EC. 
12. Norway's average applied MFN tariff 
is 6.7%.  Applied tariffs on non-agricultural products are low, averaging 0.6%;  95% are duty free.  In contrast, the average tariff on 
agricultural products (WTO definition) is 
35.8%, and only 38% of tariff lines are duty free. Norway’s average bound rate is 28.9%;  closing the gap between applied and bound rates would increase the predictability of 
Norway's trade regime.  Norway's overall tariff 
is subject to negative escalation between unprocessed and semi-processed products mainly due to high protection of agricultural raw materials.   
13. Preferential margins under FTAs are 
relatively low, reflecting the limited 
concessions on agricultural products under those agreements, and the generally low MFN tariffs on other products .  However, larger 
preferential margins are available under the 
GSP.  Preferential rules of origin provide for 
various forms of cumulation and flexibilities. 
14. Norway considers that anti-dumping 
(AD) measures are often used for protectionist purposes, and distort trade and resource 
allocation in the importing Member.  In 
consonance with these concerns, Norway has not taken any AD or countervailing measures during the review period.  Neither has it taken any measures under the Agreement on Safeguards.  The last contingency measure in 
force in Norway, an AD duty, was lifted in 
1985.  Anti-dumping and countervailing measures may not be used against imports from other EEA states, in areas covered by the Norway WT/TPR/S/205 
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EEA Agreement nor, under the EFTA 
Convention, against imports from fellow EFTA countries. 
15. Norway, as an EEA Member, adopts 
harmonized EC technical regulations and SPS 
measures (excluding on plants).  Norway may negotiate adaptations to related EC rules, and 
may also adopt national technical regulations.  Norway only notifies to the WTO SPS 
measures and technical regulations that are 
either purely national or differ substantially from those harmonized throughout the EEA.  In assessing the risk of allowing GMOs, Norway takes into account social, ethical, and sustainable development principles.  Norway 
levies a variety of fees for inspection services 
by the Norwegian Food Safety Authority. 
(4) O
THER MEASURES AFFECTING 
 T RADE  
16. Exporters may benefit from tariff 
concessions for the inward processing of 
products intended for export, as well as drawback and customs warehousing schemes.  Official support is extended to exporters through export financing and guarantee programmes.  Export finance may involve 
subsidized interest rates and be subject to 
minimum-local-content requirements.  Norway has a relatively large number of other incentive schemes, the use of which is subject to EEA disciplines on state aid.  It is important 
to ensure that, by improving the competitive 
position of beneficiary companies, incentive schemes do not also distort markets. 
17. Norway has been applying a new 
Competition Act since 2004, which 
harmonized its legislation with EC rules and 
granted more power to the Norwegian Competition Authority.  However, a study by the OECD suggests that competition could be enhanced in some sectors of the Norwegian economy, particularly in the food sector.   
18. Privatization has slowed down 
considerably since 2004.  The State continues to participate in several economic activities, administering interests in 80, fully or partially owned, companies.  The Government 
considers that state ownership ensures control over Norwegian natural resources, and that the State should be an active long-term owner of 
some "important" Norwegian companies. 
19. Norway is party to the Government 
Procurement Agreement.  Its public procurement regime is ope n to all suppliers but 
the data available suggest that only a small 
portion of contracts is awarded to foreigners.  
Since Norway's last Review, a number of changes have been introduced to its intellectual property legislation.  Norway allows the parallel importation of goods protected by intellectual property rights from 
EEA members but, in general, not from other 
countries. 
(5) S
ECTORAL POLICIES  
20. Norway offers a high level of 
assistance to the few agricultural goods that it 
produces, with support to agriculture estimated 
to be the second highest within the OECD (at 66% of the value of gross farm receipts).  For those goods, imports normally only take place if domestic production cannot meet domestic demand.  Norway administers tariff quotas for 
24 tariff lines, most of which are allocated 
through auctions;  in a number of cases fill rates are low.  Prices received by farmers over the period 2004-06 were over twice as high as those on the world market.  Direct payments 
under the Blue Box are significant, and a few 
products benefit from export subsidies.  Assistance to the agriculture sector is thus at significant variance with Norway's otherwise market-based policies and, largely as a result, 
Norwegian consumers pay particularly high 
prices for some agricultural products. 
21. Norway is the world's second largest 
exporter of seafood in terms of value.  Foreign participation in wildlife catch activities is restricted, although not in the aquaculture and 
land processing sectors.  Over the review 
period, Norway has implemented a series of market mechanisms to manage its fisheries, and continued to reduce subsidies. WT/TPR/S/205 Trade Policy Review 
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22. Norway is a significant producer and 
exporter of both crude petroleum and natural gas;  production of crude seems to have peaked but natural gas production is on an 
upward trend.  The State maintains strong 
participation in the sector, including through ownership of StatoilHydro, one of the world's largest offshore oil and gas companies.  Since 2004, the Government has introduced new 
licensing and taxation arrangements to attract 
private investment.  The electricity market is open to foreign investment but state-owned entities have significant involvement in the generation, transmission, and trading of electricity.  Energy-intensive industrial 
processes are exempt from the electricity tax, 
while manufacturing, mining and quarrying are subject to a reduced tax rate. 
23. The manufacturing sector is relatively 
small and it is concentrated on industries 
associated with the production of equipment 
used in the extraction and processing of natural resources. 
24. In the services sector, Norway 
undertook extensive sector-specific commitments under the GATS.  Important 
exceptions are postal services, audiovisual 
services, and health-related and social services.  Norway ratified the Fourth Protocol on basic telecommunications and the Fifth Protocol on financial services.  Norway's 
revised offer in the services negotiations, 
submitted in 2005, reflects its current legal framework. 
25. Norway does not apply restrictions on 
the establishment of foreign financial institutions but limits the cross-border supply 
of services by non-EEA banks and insurance companies.  Authorization is needed when domestic or foreign investors increase their 
participation in a financial institution 
incorporated in Norway. 
26. Telecommunication companies do not 
require a licence to provide services unless they use the electromagnetic spectrum.  A 
state-controlled operator has a dominant 
presence in most telecommunication markets.  However, market competition has increased since 2004, prices for most services do not seem high and investment in the sector has been substantial.   
27. The majority of commercial seaports 
and airports are state-owned, but private operators, both national and foreign, may be granted permission to provide services.  Maritime cabotage services can be provided by 
foreign operators, but only EEA providers are 
allowed to offer air tr ansport services within 
Norway.  Norwegian air carriers must be controlled by EEA investors.  Most of Norway's international scheduled passenger traffic takes place within the EC Single 
Aviation Market, which establishes a very 
liberal regime for participating states. 
28. Regarding professional services, to 
provide legal, accounting or auditing services, professionals must in principle hold a 
Norwegian university degree or pass aptitude 
exams.  EEA residents who hold a university degree from an EEA member are, in general, exempted from these requirements.