RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/205 
17 September 2008  
 
(08-4271) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
NORWAY 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Norway is attached. 
 
 
Note: This report is subject to restricted 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/G/205 
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CONTENTS 
 Page 
 
I. INTRODUCTION:  TRADE AND ECONOMIC POLICY 5 II. THE ECONOMIC ENVIRONMENT 6 
 (1) E
CONOMIC GROWTH  6 
 (2) E CONOMIC POLICIES  6 
 (3) L ABOUR MARKET AND MIGRATION  8 
 (4) S TATE OWNERSHIP  8 
III. TRADE POLICY OBJECTIVES AND DEVELOPMENT 9 
 (1) F ACTS ON NORWAY ’S TRADE  9 
 (2) C ONSOLIDATION OF THE LEGAL FRAMEWORK  10 
 (3) T RADE POLICY OBJECTIVES  11 
 (4) A ID FOR TRADE  14 
 
   Norway WT/TPR/G/205 
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 I. INTRODUCTION:  TRADE AND ECONOMIC POLICY 
1. Norway’s trade policy is an inseparable part of its economic and foreign policies.  The 
Government’s trade and economic policy is designed to promote su stainable economic growth and 
equitable distribution of the benefits of trade and economic growth to its population.  A stable, rules 
based trading environment is of fundamental im portance for Norwegian economic operators, and is 
part and parcel of global political stability. 
2. Only through international trade can a high standard of living and the demands of the 
Norwegian population and businesses fo r a diverse supply of goods and services be met.  More than 
40 per cent of gross domestic produc t is exported, sufficient to allow for imports corresponding to 
more than 30 per cent of GDP.  
3. In order to benefit from comparative adva ntages and economies of scale, Norwegian 
companies need to participate in markets extending well beyond the domestic one.  Moreover, Norway’s open economy exposes domestic produ cers of goods and services to an increasingly 
globalised environment, and one of the Government’s  key priorities is to strengthen the international 
competitiveness of Norwegian goods and service producers by ensuring that Norway’s business 
environment remains conducive to innovation, investment and growth. 
4. Sustainable development is a governing principl e for the Norwegian Government’s domestic 
and foreign policy, and the Government is committ ed to pursuing trade and environmental policies – 
including policies for climate change - that are mutually supportive. 
5. Trade is not only essential to Norway’s own economy, but is viewed by the Norwegian 
Government as of key importance for global ec onomic and political stability.  Trade policy is 
therefore embedded in Norway's foreign policy.  Norwegian public opinion attaches great importance 
to the integration of developing countries into the world economy, and the Norwegian Government 
makes particular efforts to assist the least developed countries (LDCs) in this regard. 
6. The fundamental elements of Norwegian trade policy are: 
(a) a stable multilateral rules based trading environment based on the WTO, 
complemented and supplemented by 
(b) deeper regional integration through the European Economic Area with its EFTA/EEA 
partners Iceland and Liechtenstein and the European Union;  and by 
(c) free trade agreements with other important  trading partners, primarily in co-operation 
with its EFTA partners Iceland,  Liechtenstein and Switzerland. 
7. Trade policy has increasingly become a topic for political debate in the public domain in 
Norway.  In addition to the traditional debate on  the economic merits of trade and development, 
increasing emphasis is being put on such aspects as health, environment as we ll as food and consumer 
safety.  To ensure the continued support of the ge neral public for the multilateral trading system of the 
WTO, the Government consults extensively at the national level with non-governmental groups, 
including representatives of trade and industry, la bour, consumer and other interest groups.  Such 
consultations necessitate and contribute to incr eased transparency around trade policy formulation in 
Norway.  Norwegian trade policy continues to  enjoy broad political support in the Storting 
(the Norwegian parliament). WT/TPR/G/205 Trade Policy Review 
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 8. Chapter II of this report gives a brief descripti on of the Norwegian economic environment.  In 
Chapter III, the Government sets out the broad lin es of Norway’s trade policy and its development 
since the last Trade Policy Review in 2004.  
II. THE ECONOMIC ENVIRONMENT 
(1) ECONOMIC GROWTH  
9. Since 1970, annual GDP growth has averaged 3.4%, or 3% for the mainland economy 
(excluding petroleum activities and ocean transport).  Over the past four years, growth in mainland 
GDP has averaged close to 5%.  Th is is the fastest economic growth over a four-year period since the 
1960s.  In 2007 growth in the mainland economy r eached 6.2%, according to preliminary national 
accounts data.  
10. In terms of contribution to total value added at  basic prices, the most important individual 
sector in Norway is petroleum and natural gas extr action at approx 24%.  The contributions of the 
agriculture and fishing sectors have remained consta nt at less than 1% each, while the share of the 
manufacturing and mining sector has slightly increased to approx 10%.  The weight of the service sector as a whole has continued to increase, to more than 60% in 2007. 
11. The strong growth in the Norwegian economy si nce the turnaround in 2003 can be traced 
back to the interplay of several factors.  Norwegia n terms of trade – as measured by the ratio of export 
on import prices – improved markedly over the period 2004-2006. Spurred by strong growth in China 
and other emerging economies, prices for metals, crude  oil and other intermediate goods that Norway 
exports have boosted in recent years, whilst pri ces on manufactured goods that Norway imports have 
declined.  The improvement in terms of trade has c ontributed to higher profitability in export-oriented 
businesses and strong growth in households’ purchasing power.  Together with several years of low interest rates this has fuelled a significant incr ease in business investment and household demand.  A 
steep increase in petroleum inv estments has also boosted domestic demand.  The expansion in the 
mainland economy has caused record-strong employ ment growth, with the unemployment rate 
reaching a 20-year low.  However, low imported inflation and strong increase in labour immigration 
has made it possible to maintain a high production le vel without the increase in prices and wages that 
might have otherwise occurred. 
12. Growth in the mainland economy now seems to be slowing down.  According to quarterly 
national accounts for the first quarter of 2008, growth in household consumption has dampened 
sharply and residential investments are declining.  Growth rates in manufacturing industries and of 
exports of traditional goods have fa llen.  However, growth in petrol eum investments is still vigorous. 
In the Revised National Budget 2008, growth in mainland GDP is estimated at 3.2% in 2008, 
indicating a fifth year running with growth above trend.  
(2) E
CONOMIC POLICIES  
13. General government finances are strong.  The general government balance showed a surplus 
(net lending) of 18.5% of GDP in 2006 and 17.2% in 2007, primarily due to revenues from the 
petroleum sector.  In the Revised National Budget 2008, the surplus for the year 2008 is expected to 
correspond to 17.9% of GDP.  Net revenues from the petroleum sector are transferred to the Government Pension Fund – Global,  which is the government's instrument for converting wealth from 
oil and gas reserves to a broad-based portfolio of in ternational securities.  The Pension Fund is fully 
integrated into the Fiscal Budget, and the non-oil bu dget deficit is covered by an annual transfer from 
the fund.  Thus, the change in the fund’s capital corresponds to central government net saving.  The Norway WT/TPR/G/205 
 Page 7 
 
 
 market value of the Government Pension Fund – Global is estimated to reach NOK 2 316 billion or 
92.8 per cent of GDP by the end of 2008, up from NOK 1 011 billion or 58.0 per cent of GDP at the end of 2004. 
14. Fiscal policy is geared towards a gradual and sustainable increase in the use of petroleum 
revenues.  The fiscal policy guidelines decouple the spending of revenues from the extraction of non-
renewable oil and gas resources from the earning of the revenues.  Central government revenues from 
petroleum activities are allocated to the Government  Pension Fund – Global in their entirety, whilst 
withdrawals over time shall correspond to the expected real return on the Fund.  Over time, the structural, non-oil budget deficit is to correspond to th e real return on the Fund, which is estimated at 
4 per cent.  This fiscal rule is not applied auto matically, and the actual implementation takes into 
account business cycle fluctuations around the medium te rm growth path.  This enables fiscal policy 
to contribute to predictability, support monetary policy and facilitate stable development in the 
Norwegian economy.  In a situation – as has been  the case in latter years – where growth in the 
mainland economy is strong and well a bove trend growth, it is consistent  with the fiscal rule to spend 
less oil revenues than the e xpected return on the Fund. 
15. Long-term considerations also suggest that th e spending of petroleum revenues should not be 
expanded too rapidly.  Norway is at present in  a period when demographic developments are 
relatively favourable from a government budget perspec tive.  A high oil price and strong growth in 
the Fund capital means that a budget policy that a dhered mechanically to the 4-percent trajectory 
would result in a steep increase in the spending of petroleum revenues over the next few years.  The 
favourable demographic developments  will soon be reversed, and the proportion of elderly people in 
the population will be increasing rapidly in the longer run.  Long-term budget projections imply major fiscal policy challenges, even with the oil price remain ing at a high level.  Consequently, the return on 
the extra savings retained in the Government Pensi on Fund – Global will be put to good use when the 
growth in expenditure associated with an  aging population starts to accelerate. 
16. Monetary policy aim at stability in the domestic  and international value of the Norwegian 
krone.  Norges Bank's operational implementation of  monetary policy is aimed at low and stable 
inflation, defined as an annual increase in consumer  prices that remains close to 2.5 per cent over 
time.  The monetary policy shall also contribute to  stabilising growth in output and employment, and 
to create stable expectations with re gard to exchange rate developments. 
17. The Norges Bank key policy interest rate was reduc ed by a total of 5¼ percentage points, to 
1¾ pct., from December 2002 to March 2004.  The inter est rate stayed at this low level up to and 
including June 2005, and has thereafter been gra dually increased.  The key policy rate is currently 
5¾ pct. (July 2008). 
18. Through the Agreement on the European Economic  Area (EEA) Norway takes part in the EU 
internal market.  The Agreement provides for the free movement of goods, services, persons and 
capital among the three EFTA states parties to the EEA (Norway, Iceland and Lichtenstein) and the 
27 EU member states.  This participation provides a framework for Norway’s structural policy in the 
fields inter alia  of competition policy, state aid, and government procurements, as well as sectoral 
policies such as telecommunications and financial sect or regulations.  In the sectors covered, the same 
regulations apply for Norwegian and EU companies.   The only economic sectors that are not fully 
integrated are fisheries and agriculture. WT/TPR/G/205 Trade Policy Review 
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 (3) LABOUR MARKET AND MIGRATION  
19. Since 2000 there has been a strong rise in labour immigration to Norway.  By the 4th quarter 
of 2007 approx. 273 000 immigrants worked in Norway (11 per cent of the labour force).  22 per cent of them have a temporary stay in Norway.  The numbe r of permits issued to labour migrants tripled in 
the period between the enlargement of the Europ ean Economic Area (EEA) – due to the enlargement 
of the European Union – in 2004 and early 2008.  By June 2008, about 91,000 EU citizens hold a 
valid permit.  Close to ¾ of these permits are issued  to citizens of the new member states, including 
Bulgaria and Romania.  Norway still has transiti onal regulations in place for citizens of the new 
member states, which means that these migrants need  to have a work permit to take employment, 
whereas nationals of other EEA members bene fit from the free internal labour market.  
20. High demand for labour and a gradual opening up of the labour market through changes in the 
immigration regulations has led to an increase al so in the number of non-EEA nationals working in 
Norway.  From 2004 to 2007 there was an 80% increas e in the number of work related permits to 
citizens of countries that were not members of the EEA.  The total number of new permits issued to 
labour migrants from non-EEA nationals, was close to 7000 in 2007. 
21. A new immigration act was adopted by the Norwegian Parliament 15 May 2008 and is 
scheduled to become operative in 2010.  The new law is more transparent than the old law with regard 
to the rights and duties of service providers that are independent professionals or contractual service 
suppliers.  A separate act implementing EU directive 2004/38/EC Free Movement of Persons , which 
eliminates the present requirement of resident pe rmits for EU citizens, was presented to the 
Parliament on 27 June 2008. 
22. Report to the Storting no. 18 (2007-2008) Labour migration - signalling a positive attitude to 
labour migration in general - was approved by the Parliament on 17 June 2008.  In the report the 
Government makes it clear that labour migration c ontributes to a more efficient labour market and 
enhanced value creation.  It contributes to soci al diversity and cross-cultural understanding.  The 
Government also made its intentions known to furt her change the immigrati on regulations to make it 
easier and quicker to acquire a work permit.  In  the future, four weeks should be the expected 
processing time. 
(4) S
TATE OWNERSHIP  
23. The participation of the Norwegian State in th e economy is extensive.  Due primarily to the 
way the income from the petroleum sector is distri buted; a large part of savings in the Norwegian 
economy takes place through the public sector.  It is estimated that the State owned around one-third 
of the Oslo Stock Exchange capitalisation in Janua ry 2008.  The State is a major shareholder in 
several of the larger commercial listed companies,  but only in a very limited number of companies is 
the State sole owner.  The State acts as an active, long-term owner, whose main  aim is to contribute to 
the companies’ long-term value creation and industr ial development.  The State’s ownership also 
contributes to safeguarding the public interest in Norway’s natural resources and the revenues there 
from.  Furthermore it is part of the State’s ow nership policy that these companies – which have 
extensive international business activ ities – remain based in Norway. 
24. Privatisation is not an issue for the present Norwegian Government, but the State may take 
part in structural transactions which can improve th e activities of a company.  Decisions to buy or sell 
are taken on a case-by-case basis, and us ually depend on parlia mentary approval. Norway WT/TPR/G/205 
 Page 9 
 
 
 25. State ownership has undergone a number of reforms since the turn of the century.  The 
Norwegian Government has organised the management of its ownership in such a way as to keep the 
role of owner separate from the roles of policymaker, regulator and supervisor.  The Minister of Trade 
and Industry exercises the ownership role in most  companies where the State is involved, and The 
Ministry of Trade and Industry’s coordinating role  in managing ownership has been strengthened.  
This ministry now issues an annual report on th e State’s ownership (www.ownershipreport.net). 
26. The State’s exercise of its ownership is based on generally accepted principles for corporate 
governance, and on the division of roles set out in Norwegian company legislation.  To enhance the transparency of State ownership further, a doc ument on the Government’s Ownership Policy was 
issued in 2007, setting out the Government’s objectives for State ownership 
(www.ownershippolicy.net).  Among other things, the companies must focus on research and development, the ability to restructure, gender equa lity, ethics and environmental considerations.  The 
Board of Directors of each company is responsib le for finding the right balance between these 
expectations, in a manner that furthers the interest of the shareholders as a whole. 
27. A restructuring and merging of the two main Norwegian petroleum companies has left the 
State with 62.5 percent of the shares of the resu lting StatoilHydro ASA, and with an intention to 
increase this to 67 percent.  
III. TRADE POLICY OBJECTIVES AND DEVELOPMENT 
(1) F
ACTS ON NORWAY ’S TRADE  
28. Total Norwegian merchandise trade (imports pl us exports) increased at an average annual 
nominal rate of close to 15% over 2004-07;  as a proportion of GDP, trade increased from 50.5 in 
2004 to 55.5% in 2007.  During 2004- 07, exports represented on average 64% of total trade.  The 
trade surplus was some US$56 billion in 200 7 (compared to US$28 billion in 2003). 
29. Although Norway has a highly diversified econo my, its fundamental dependency on natural 
resources as the basis for its wea lth remains.  Norway has histor ically been a large exporter of 
commodities such as petroleum and natural gas, a nd processed mineral products like aluminium.  In 
2006 the value of primary products' exports represente d 78.6% of total exports .  Crude petroleum and 
natural gas remain Norway's most important expor t products; together they accounted for 56.8% of 
exports in 2007, compared to 55.6% in 2003.  With in the food sector, Norway is one of the world’s 
largest exporters of fish and fish products, wh ich account for 4.5% of export revenues, whereas 
agricultural exports are minimal.  The share of expor ts of manufactures (sitc 5-9) in total exports was 
29.1% in 2007.  The main manufacturing exports ar e aluminium, machinery and transport equipment, 
followed by chemicals. 
30. The composition of imports remains stable.  Close to 80% of Norway's imports were 
manufactured goods in 2007, which represents a small decline with respect to 2004.  Amongst 
manufactures, machinery and transport equipment is the main sector, non-electrical machinery, 
automotive products as well as office machines being the top categories. 
31. The direction of Norway's merchandise trade did not change significantly during 2004-07.  
Norway's main trading partners are still the me mbers of the European Communities (EC25), which 
accounted for 81% of exports and nearly 68% of imports in 2007.  The United Kingdom was the main export market for Norwegian products with 26% of total exports, followed by Germany, the 
Netherlands and France.  Norwegian exports to bo th the Americas and Asia grew in value terms; WT/TPR/G/205 Trade Policy Review 
Page 10 
 
 
 however the share in total exports of the former decl ined to 10%, while the share of the latter grew to 
5.6% in 2007. 
32. The European Communities' (EC25) share of imports declined over the period under review, 
while the Americas' share, in particular Canada's , increased.  Even though Asian products as a whole, 
particularly Japanese ones, lost market share, Ch ina's position increased to 6.0% in 2007, becoming 
the fifth individual provider of Norway, after Sweden, Germany, Denmark, and the United Kingdom. 
33. Since the last Trade Policy Review, Norwegian ser vice exports have grown faster than service 
imports.  In particular, the shipping services sector  has doubled its positive contribution to the balance 
of trade in services, which reflects the growing Norwegian owned fleet sailing under both Norwegian 
and foreign flags.  After shipping services, fi nancial and business services were the second most 
important service exported by Norway in 2007, representing almost a quarter of the total.  Tourism services were the most important category of servi ce imports, representing some 40% of the total in 
2007.  
(2) C
ONSOLIDATION OF THE LEGAL FRAMEWORK  
34. Norwegian customs legislation has been subject  to a general overhau l and updating process 
since the last Trade Policy Review in 2004.  A new Customs Commodities and Procedures Act1, 
adopted by the Norwegian Parliament in December  2007, is scheduled entering into force as from 
1 January 2009.  The new Act is a technical revisi on of current legislation, consolidating current 
provisions on several levels in the domestic legal system, and implements customs rules and procedures found in international customs treaties to which Norway is a party.  
35. The aim of the new legislation is to provide a transparent and systematic set of rules giving 
the full picture of Norway's customs and trade rela ted legislation.  The new act codifies relevant 
customs provisions and decisions made by the cust oms authorities over past decades, thus improving 
transparency and predictability for traders as well as citizens.  The Customs Commodities and 
Procedures Act is available interactively on the public legal database (“Lovdata”).
2 
36. The new Act comprises both general administ rative and penal provisions and specific 
customs related provisions, on such issues as cu stoms territory, customs debt, customs control, 
customs declarations and procedures, customs re lief, customs valuation, customs preferences, 
investigation and imposition of trade measures,  classification of goods, preferential and non-
preferential rules of origin, professional secrecy of cu stoms officers and customs co-operation.  As the 
new Act is principally a technical revision of current  legislation, there are no substantial changes to 
customs procedure or documentation obligations si nce 2004, and the new customs legislation is not 
expected to alter import or export requireme nts.  Applied tariffs remain unchanged.  
37. New Regulations, comprising detailed implementing provisions based on the new Act, will 
enter into force at the same tim e as the Act itself.  This regulation will encompass a vast number of 
other customs and trade related provisions on several issues, including customs valuation, 
classification of goods, preferential and non-preferential rules of origin.  The Regulation will also be 
available interactively free of char ge in the public legal database. 
38. The consolidation of the customs legislation framework will provide improved legal certainty, 
due to the fact that the main part of the legislati on will be found at the law level.  Thus, traders and 
                                                      
1 Lov 21. desember 2007 nr 119 om toll og vareførsel. 
2 http://www.lovdata.no/all/hl-20071221-119.html. Norway WT/TPR/G/205 
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 citizens will have the possibility of having their legal rights and obligations examined by national 
courts, according to the principle of rule of law. 
39. When the Act and Regulations enter into force,  the new consolidated legal framework will be 
subject to notification to the WTO, with necessary translations. 
(3) TRADE POLICY OBJECTIVES  
Norway remains strongly committed to the WTO as  the primary basis for Norwegian trade policy 
40. For geographical and historical reasons Norwegian trade largely takes place with our 
European neighbours.  However, the global char acter of major Norwegian exports and imports – 
petroleum, energy intensive materials, internationa l maritime transport and consumer goods – implies 
that the wellbeing of the Norwegian economy is di rectly linked to the overall health of the world 
economy.  Thus, the primary focus of Norwegian trade policy is the mul tilateral trading system 
embodied in the WTO.  Other elements of Norwegian trade policy, be they regionally through the EEA, EFTA or bilaterally are based on the fundament al principles of the mu ltilateral trading system 
and must be seen as complementary and supplementary to our WTO commitments. 
41. Norway was one of the founding members of the GATT in 1947 and remains strongly 
committed to the multilateral framework under the au spices of the WTO.  The strong, rules-based 
system is the best guarantee against unilateralis m and protectionism, and provides stability, security, 
transparency, and predictability for traders.  Econom ic growth and developmen t in all nations – and 
particularly in developing count ries – depends on a strong, rules-based and fair multilateral trading 
system.  
42. Norway firmly believes that the best way to  meet the challenges facing an increasingly 
globalised world economy is to continue to develop the net of international agreements and rules in 
areas as diverse as trade, environment and security.  As the primary vehicle of trade rules, the challenge of the WTO in this setting is trade polic y negotiations aimed at maintaining, improving and 
strengthening the multilateral trading system and at gr adually integrating all countries into the system.  
43. Norway deeply regrets that it was not po ssible to reach agreement on modalities for 
Agriculture and NAMA in Geneva in July 2008.  While any agreement will pose serious challenges 
for Norway, in particular in agriculture, we conti nue to maintain that a positive outcome of the Doha 
Development Agenda (DDA) is essential for the global economy, for developing countries and for 
Norway.  We thus remain strongly committed to completing the negotiations of the DDA as soon as 
possible; building on the substantial progress that has been achieved.   
Norway sees regional trade arrangements and free tr ade agreements as being complementary to the 
multilateral regime by accommodating the need for deeper economic integration  
44. Norway will continue to pursue regional and bilateral agreements, in conformity with 
Article XXIV of the GATT and Article V of the GATS, in order to expand trade and economic 
co-operation with its partners and safeguard Norwegian business opportunities.  By supplementing 
multilateral trade negotiations through the WTO, Norway pursues its trade policy along two main 
additional tracks: 
 (a) regional integration through the Agreem ent on the European Economic Area with its 
EFTA/EEA partners and the European Union;  and WT/TPR/G/205 Trade Policy Review 
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 (b) free trade agreements, primarily in co- operation with its EFTA partners, Iceland, 
Liechtenstein and Switzerland. 
The European Economic Area (EEA) 
45. The Agreement on the European Economic Area (EEA) extends the internal market of the 
27 EU Member States to three European Free Tr ade Association (EFTA) countries Norway, Iceland 
and Liechtenstein.  The EEA Agreement covers the free movement of goods, persons, capital and 
services (the four “freedoms”).  
46. With such close cooperation as is the case within  the EEA – a complete internal market with 
identical rules and regulations for goods and servi ces – it is inevitable that rules and regulations 
governing imports from outside the EEA  will be similar and often identical.  In this way the EEA also 
benefits traders who can operate on a si ngle market of approx. 500 million people. 
47. However, the EEA Agreement is not a customs union.  In respect of Article XXIV of the 
GATT and Article V of the GATS the agreement is a free trade area, and there is no common customs tariff.  Multilateral trade policy in the WTO and trade policy vis a vis  non-EEA countries remain the 
responsibility of the EU, Iceland, Liechtenstein and Norway respectively.  
48. The scope of the agreement does not include the EU’s Common Agricultural Policy or the 
Common Fisheries Policy, although it contains provisions  on some aspects of tr ade in agricultural and 
fish products.  In fact, the most recent trade po licy dispute in the WTO involving Norway was with 
the EU regarding anti-dumping measures against farmed Norwegian salmon. 
49. As it is one of the primary objectives of th e EEA Agreement to ensure equal conditions of 
competition, the substantive competition rules of the Agreement correspond to the relevant "acquis 
communautaire" in the EU.  This covers rules c oncerning cartels, abuse of dominant positions, merger 
control, state monopolies and state aid, as well as public procurement.  The Agreement also includes 
areas that have an impact on the competitive position of enterprises, such as consumer protection, 
environment, social policy (including health and safety at work, labour law and equal treatment of 
men and women), statistics and certain elements of  company law.  Other fields of co-operation 
include culture, education, information servi ces, and small and medium-sized enterprises. 
50. A key feature of the EEA Agreement, which distinguishes it from most other free trade 
agreements, is its dynamic character.  Its common rules are continuously updated by adding new EU 
legislation.  This aspect is essential given the la rge output of Community legislation affecting the 
internal market.  Each month, a number of EEA-relevant pieces of legislation are incorporated into the 
Agreement by decisions of the EEA Joint Committe e.  The Agreement provides for information and 
consultation procedures at all stages of the Commun ity’s decision-making process.  As part of the 
internal Norwegian process in th is respect, the question of the WTO conformity of the proposed 
legislation is routinely considered in all cases.  The EFTA-EEA states ask for consultations on matters 
of concern, and also seek adaptations to Commun ity legislation in its application to the EFTA 
countries when special circumstances call for this.  Since the EEA Agre ement entered into force, more 
than 6000 EC legal acts have b een incorporated into it.  
Free trade agreements  
51. Since the early 1990s, Norway and its partne rs in the European Free Trade Association 
(EFTA) – Iceland, Liechtenstein and Switzerland – have established an extensive network of free 
trade agreements worldwide.  Since 2004, Norway  has signed agreements with Canada, Colombia, Norway WT/TPR/G/205 
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 Egypt, Gulf Cooperation Council (Bahrain, Unite d Arab Emirates, Kuwait, Oman, Qatar and 
Saudi Arabia), Korea, Lebanon, SACU (Botswana,  Lesotho, Namibia, South Africa and Swaziland) 
and Tunisia.  As of June 2008, the EFTA network c onsists of eighteen free trade agreements and five 
declarations on co-operation.  EFTA is currently negotiating with Algeria, Peru and Thailand, and 
have agreed to start negotiations with India.  
52. In addition China and Norway have agreed to  start bilateral negotiations on a free trade 
agreement in the fall of 2008.  
53. The free trade agreements cover trade in industr ial products, fish and ma rine products as well 
as processed agricultural products.  In addition,  each EFTA country has concluded bilateral 
agricultural protocols with each of the partners.  Th e bilateral agricultural protocols are an integral 
part of EFTA's free trade agreements.  The free tr ade agreements also incorporate provisions on a 
number of other trade issues, such as competition, protection of intellectual property, services, 
investments and government procurement.  
54. Several of EFTA’s free trade agreements with  developing countries take into account the 
different level of economic devel opment in the partner countries by providing for an asymmetrical 
approach.  In these kind of agreements, the EFTA St ates grant free trade from the date the agreement 
enters into force, while the partner countries can have transitional periods of tariff dismantling for 
certain sensitive products.  This gives the partne r country the necessary time to adapt their economy to 
free trade conditions.  
55. Norway also takes part in the pan-European system of accumulation of origin, which will 
gradually be extended to the entire Euro-Mediterranean  area.  This represents an important step in 
facilitating preferential trade within this entire area.  
56. In June 2008 the EFTA ministerial meeting ag reed, at Norway's initiative, to establish a 
working group on trade and environment that will c onsider how environment may be approached in 
the context of EFTAs free trade agreements. 
World trade must benefit developing countries  
57. Norwegian trade policy towards developing countr ies plays a central role in the formulation 
of Norwegian foreign and development co-operati on policy.  Norway will continue to promote 
improvements to the multilateral trading system and encourage greater integration of the developing 
countries, especially the LDCs, by means of improved market access, transitional arrangements, 
technical and financial s upport and other measures. 
58. Norway has also taken a number of specific st eps to promote trade with developing countries 
by implementing improvements to its Generalised System of Preferences (GSP).  Duty- and quota-
free market access for all goods from all 50 Least  Developed Countries (LDCs) was implemented 
already from 1 July 2002.  From 1 January 2008 th is scheme was extended to include 14 low-income 
countries that do not belong to the LDC group.  This means that 64 low-income countries are now 
given DFQF market access into  Norway for all their goods.  
59. The changes in Norway’s GSP from 1 January 20 08 is the result of a comprehensive review 
undertaken by the Norwegian Government, with the aim of increasing Norway’s imports from developing countries and in particular from the LD Cs and other low-income countries.  A basic 
consideration of the review was to develop a c onsistent GSP based on objective criteria for selecting 
the countries that are to be included and also for determining which countries are to be given duty- 
and quota-free access for all their goods.  WT/TPR/G/205 Trade Policy Review 
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 60. The Government’s review also led to a number of simplifications in the GSP scheme, and to 
increased emphasis on information and development cooperation as a part of Norway’s Action Plan 
on Aid for Trade.  Developing countries, and in par ticular the countries that are part of Norway’s 
scheme for duty- and quota-free market access, are ur ged to make use of their trade preferences in 
order to increase their exports and trade relations wi th Norway.  Further information can be found on 
the Norwegian Government’s website www.regjeringen.no/ud. 
(4) AID FOR TRADE  
61. Norway is an active participant in the WTO’s wo rk on aid for trade.  In WTO’s first Global 
Review of Aid for Trade in November 2007, Norway  presented its “Action Plan on Aid for Trade” for 
the period 2008-2010. 
62. Norway has for several years been a major contributor to the multilateral funds for trade 
related technical assistance (IF, ITC, JITAP, DDAGTF, ACWL, UNCTAD).  In 2007, Norway donated NOK 10 million (USD 2 million) to the Doha  Development Agenda Global Trust Fund, and 
is one of the principal contributors to this Fund since its initiation in 2002.  Norway has also made 
substantial contributions to ot her WTO related activities (travel support to LDC representatives, 
WTO Public Forum, Standards and Trade Developm ent Facility, Trade Facilitation Needs Assessment 
Trust Fund).  
63. Norway increased its Aid for Trade budget by 50% with NOK 50 million from 2007 to 2008.  
The Action Plan focuses on three thematic areas:  (i) good governance and the fight against corruption 
(comprising trade policy, trade facilitation, technical barriers to trade, and ethical trade), (ii) women and trade and (iii) regional trade.  Priority is gi ven to Africa and the least developed countries and the 
funds are channelled primarily through multilatera l organisations as recommended by the WTO task 
force on aid for trade.  The Enhanced Integrated Fr amework (EIF) is of particular importance.  Our 
concentration on these issues stresses the need for co operation and coordination so that all important 
objectives can be achieved.  
64. In line with the Action Plan on Aid for Trad e, Norway will contribute actively towards 
ensuring an optimal monitoring and evaluation of r esults, on the basis of both the global monitoring 
mechanism and special Norwegian requirements for the utilisation of financial contributions.  As an 
important part of the national monitoring process, No rway will have consultations with an advisory 
committee compromising representatives of civil soci ety, academia and organisations.  An assessment 
of Norway’s aid for trade strategy will be carried out after three years, in 2010.  
65. In 1998, Norway established the Norwegian Investment Fund for Developing Countries 
(Norfund) with the objective of reducing poverty through investments in the productive sectors in 
developing countries, in particular in the l east developed.  The capital of Norfund stood at 
approximately NOK 4.5 billion (USD 900 million) at its 10 year anniversary in March 2008.  The 
investments of Norfund take place directly and indirectly through funds and local financial 
institutions.  Several of its investments are fo cused on enabling developing countries to take 
advantage of trade opportunities.  For example in a new project in Mozambique, Norfund has, 
together with its partners, set up a major bana na exporter with 3000 ha in production, in a 
USD 50 million project.  This plantation will be impor tant in developing Mozambique as an important 
agricultural exporter in the Southern African region a nd is an effort of the large banana importers to 
diversify away from traditional regions. 
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