Norway WT/TPR/S/138 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Since Norway's last TPR in 2000, sectoral GDP has in broad terms shifted away from oil and 
gas extraction and agriculture towards various servi ce industries, while the share of manufacturing has 
remained fairly constant (Table IV.1).   
Table IV.1 
Gross domestic product and value added by industry at current prices, 2000-03 
(NKr billion and per cent) 
 NKr billion  % of total 
 2000 2001 2002 2003  2000 2001 2002 2003 
Gross domestic product 1,469.1 1,526.2 1,522.2 1,570.3  100.0 100.0 100.0 100.0 
Agriculture, hunting and forestry 15.8 15.5 14.6 14.7  1.1 1.0 1.0 0.9 
Fishing and fish farming 12.4 9.4 8.2 4.8  0.8 0.6 0.5 0.3 
Oil and gas extraction 327.7 308.7 261.0 274.0  22.3 20.2 17.1 17.4 
Mining and quarrying 2.6 3.1 3.1 3.1  0.2 0.2 0.2 0.2 
Manufacturing 141.8 148.1 148.9 141.7  9.7 9.7 9.8 9.0 
Food products, beverages, tobacco 23.5 26.1 29.0 27.9  1.6 1.7 1.9 1.8 
Textiles, wearing apparel, leather 2.2 2.5 2.5 2.1  0.1 0.2 0.2 0.1 
Wood and wood products 5.6 6.6 6.7 6.4  0.4 0.4 0.4 0.4 
Pulp, paper and paper products 6.5 7.4 5.1 4.2  0.4 0.5 0.3 0.3 
Publishing, printing, reproduction 14.8 15.2 15.3 15.4  1.0 1.0 1.0 1.0 
Refined petroleum, chemical and mineral products 14.9 14.3 14.5 14.8  1.0 0.9 1.0 0.9 
Basic chemicals 6.8 6.9 5.8 5.4  0.5 0.4 0.4 0.3 
Basic metals 13.1 12.3 9.5 10.1  0.9 0.8 0.6 0.6 
Machinery and other transport equipment 34.4 36.5 37.8 34.7  2.3 2.4 2.5 2.2 
Building of ships, oil platforms and modules 14.0 14.7 17.0 15.6  1.0 1.0 1.1 1.0 
Furniture and other manufacturing n.e.c. 6.0 5.8 5.6 5.0  0.4 0.4 0.4 0.3 
Electricity, gas and steam supply 24.8 28.5 31.4 37.4  1.7 1.9 2.1 2.4 
Water supply 1.9 2.3 2.4 2.6  0.1 0.2 0.2 0.2 
Construction 54.2 56.7 62.5 65.3  3.7 3.7 4.1 4.2 
Services industries, excluding general 
government 742.6 805.0 850.3 886.0  50.5 52.7 55.9 56.4 
Wholesale and retail trade, repair of motor vehicles 118.4 122.9 130.9 132.1  8.1 8.1 8.6 8.4 
Hotels and restaurants 19.1 19.5 21.0 21.3  1.3 1.3 1.4 1.4 
Transport via pipelines 13.8 19.1 19.1 21.5  0.9 1.2 1.3 1.4 
Ocean transport 26.0 31.2 28.3 27.5  1.8 2.0 1.9 1.8 
Other transport activities 47.4 49. 7 54.2 54.8  3. 2 3.3 3.6 3.5 
Post and telecommunications 22.7 25.5 29.3 29.4  1.5 1.7 1.9 1.9 
Financial intermediation, insurance 46.3 47.1 47.3 50.0  3.2 3.1 3.1 3.2 
Dwelling services (households) 69.0 73.1 78.7 83.9  4.7 4.8 5.2 5.3 
Business services 116.0 128.7 134.6 141.0  7.9 8.4 8.8 9.0 
Public administration and defence 64.1 69.4 70.8 72.2  4.4 4.5 4.7 4.6 
Education 56.4 61.6 65.3 70.2  3.8 4.0 4.3 4.5 
Health and social work 102.1 113.3 123.7 131.9  6.9 7.4 8.1 8.4 
Other social and personal services 41.2 43.9 47.0 50.0  2.8 2.9 3.1 3.2 
Total industries (basic values) 1,323.9 1,377.4 1,382.3 1,429.7  90.1 90.2 90.8 91.0 
Mainland Norway (basic values) 956.3 1018.4 1073.9 1106.7  65.1 66.7 70.5 70.5 
Value added tax and investment levy 128.3 133.9 132.2 132.3  8.7 8.8 8.7 8.4 
Other taxes on products, net 53.3 53.1 53.6 55.6  3.6 3.5 3.5 3.5 
Financial intermediation services indirectly   
measured -36.4 -38.1 -39.0 -41.1  -2.5 -2.5 -2.6 -2.6 
Statistical discrepancy 0.0 0.0 -6.8 -6.2   0.0 0.0 -0.4 -0.4 
 
Source:  Statistics Norway online information.  Available at : http://www.ssb.no/english/subjects/09/01/nr_en/tabe_1996-
 2003_13.html.  
2. The services sector remains the backbone of the Norwegian economy in terms of output and 
employment;  it accounts for about 56% of GDP.  Si nce Norway's last TPR, new legislation on 
telecommunication have entered into force, and owners hip restrictions in financial services have been 
relaxed.  State ownership in the services sector rema ins substantial, most notab ly in financial services 
and telecommunications, although the state has reduced its shares in a number of enterprises.  Under WT/TPR/S/138 Trade Policy Review 
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the GATS,  Norway has bound – with a few lim itations on market access and national treatment – 
measures affecting cross-border supply, consump tion abroad, and commercial presence for a number 
of services, including telecommunications, construction and related engineering services, and distribution and transport services.  Measures affecting presence of natural persons remain generally 
unbound, except as indicated under Norway's horizontal commitments.  In the ongoing services 
negotiations, Norway has suggested meaningful lib eralization of maritime transport services and 
offered new commitments in a number of services, already liberalized at the EEA level. 
3. Production of petroleum and natural gas remain s the single most important activity in the 
Norwegian economy;  Norway is the world's third larg est exporter of crude oil.  The share of oil and 
gas extraction in GDP has fluctuated substantially, due mainly to oil price variations.  Although the 
hydrocarbons subsector is open to foreign companie s and some limited privatization has taken place, 
state ownership remains substantial.  The share of petroleum and petroleum products in Norway's 
exports has ranged between 43% and 63% in recent years. 
4. Norway's manufacturing sector comprises a broad range of activities;  the most important are 
machinery and transport equipment, food products, and ship-building.  The share of the sector in GDP 
remains at just over 9%.  Imports of a large category of manufactured products are duty free;  
processed agricultural products and textiles are the most tariff protected industries in the sector.  
Exports of manufactured products accounted for so me 20% of total merchandise exports in 2003. 
5. The agriculture sector contributes less than 1%  to Norwegian GDP.  It remains the most 
tariff-protected sector.  Tariff quotas apply to "sens itive" products, mainly goods  covered by Norway's 
minimum access commitments under the WTO Agreem ent on Agriculture.  Border protection is 
compounded by a complex system of extensive domestic support (more than two thirds of all budgeted state support).  Outlays for agricultural ex port subsidies have decreased significantly since 
Norway's last TPR, but remain substantial for dair y products.  A bilateral agreement with the EU 
entered into force in July 2003, with a view to in creasing bilateral trade in agricultural products.  The 
contribution of forestry and fisheries to GDP remains low;  state support for both subsectors has 
decreased since the year 2000. 
(2) A
GRICULTURE  
(i) Main features  
6. The contribution of Norway's agriculture sector  to GDP has continued to decline in recent 
years, from 1.1% in 2000 to 0.9% in 2003.1  Over the same period, employment in the sector 
decreased from  79,000 man-years in 2000 to 74,200 man-years in 2002.  Production is characterized 
by a relatively narrow range of goods, with livest ock and milk production as main activities (Table 
IV.2).  The most important crops are cereals, potatoes, and fruit (mainly apples and pears). 
7. Norway's main agricultural export goods include  feedingstuff for animals, cheese, and cereals 
and cereal preparations;  imports comprise a wider ra nge of products.  In 2003, agricultural exports 
(excluding forestry and fishing) totalled US$53.4 mi llion and imports amounted to US$891.1 million.   
                                                      
1 GDP data are based on online information from Sta tistics Norway.  Trade data are based on UNSD, 
Comtrade database, unless otherwise indicated. Norway WT/TPR/S/138 
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Table IV.2 
Value of agricultural production, 1999-01 
(NKr million) 
 1999 2000 2001 
Total gross valuea 20,038 20,147 19,906 
Crops (total) 5,471 5,553 5,549 
  Grain, dry peas and oil-seeds  2,404 2,332 2,240 
  Other seeds 47 37 34 
  Potato 433 452 503 
  Hay 73 101 96 
  Vegetables 916 997 1,016 
  Fruit, berries and flowers 1,598 1,633 1,659 
Livestock products (total) 14,145 14,166 13,830 
  Milk 6,237 6,595 6,010 
  Meat and poultry 6,963 6,578 6,763 
  Wool 168 158 167 
  Eggs 537 491 502 
  Live animals 2 7 3 
  Fur-bearing animals 176 261 320 
  Rabbits and bees 62 75 65 
Other 549 548 561 
Changes in stocks -127 -120 -34 
a The figures include price support for products eligible for such support. 
 
Source:  Information provided by the Norwegian authorities.  
8. Despite a continuous decrease in the number of  farms, Norway's agriculture sector is still 
characterized by small-scale production units (Table IV.3).  The authorities indicate that the potential 
for further structural adjustment in terms of pr omoting large-scale production is inhibited by natural 
conditions, such as farms being scattered over a small percentage of arable land, harsh climate, and 
short seasons, as well as by specific policy measures aimed at safeguarding non-trade concerns. 
Table IV.3 
Number of farms, farm size, and employment in agriculture, 1999-02 
 1999 2000 2001 2002 
Number of farms 70,000 67,600 64,600 61,000 
Average farm size (ha) 14.6 15.5 15.9 .. 
Man-years in agriculture 80,500 76,800 74,300 70,500 
Man-years in agriculture, as percenta ge of total man-years 3.6 3.4 3.3 .. 
.. Not available. 
Source:  Information provided by the Norwegian authorities.  
9. Agricultural policies are formulated by the Mini stry of Agriculture, while implementation of 
policy measures and support schemes is the respons ibility of the Norwegian Agricultural Authority 
(NAA).  The NAA was established on 1 July 2000 through  a merger of four agencies:  the Secretariat 
for the Norwegian Agricultural Marketing Board, the Norwegian National Grain Administration, the 
Meat Transport Funding Office, and a section of th e State Bank for Agriculture.  Current Norwegian 
agricultural policy is aimed at, inter alia , regional development, agricultural landscape, and 
environmental concerns. 
10. The main legislation regulating Norway's agriculture sector is the Marketing Act of 
10 July 1936 and the annual Agricultural Agreemen t.  The two main farmers' associations (the 
Norwegian Farmers' Union and the Norwegian Farmer s' and Smallholders' Union) have the right to 
discuss prices and other internal measures with th e Government in annual agricultural negotiations.  
The resulting Agricultural Agreement is subject to ra tification by the Storting.  The agreement lays WT/TPR/S/138 Trade Policy Review 
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down target prices for farm products and fiscal sup port to be accorded to the agriculture sector.  
Support is provided for producers of grains, fruit and vegetables, milk and dairy products, meat of 
bovine animals, veal, sheep, pig, and poultry, eggs, and wool.  Substantial direct payments are also in 
place, through schemes differentiated by region, size of  farms, surface of arable land, and number of 
animals.  While the framework of the agreement usua lly does not change from year to year, there is an 
ongoing process of review and evaluation of programme s.  The current Agricultural Agreement is in 
force from 1 July 2003 until 31 December 2004.2 
11. Norway has notified the WTO Committee on Agriculture of its food aid programmes, under 
the Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on 
Least-Developed and Net Food-Importing Developing Countries.  In its most recent notification, for 
calendar year 2001, Norway reports food-relate d relief aid of NKr 130.7 million and long-term 
programme disbursements of NKr 463.5 million.3   
12. In the ongoing agricultural negotiations, Norway , together with other WTO Members, has 
been calling for a proper balance be tween trade and non-trade concerns.4  With regard to market 
access, it declared its commitment to substantial im provements.  Norway has stated its willingness to 
discuss various ways of reducing tariffs, but str essed that any formula should have the necessary 
flexibility for "sensitive products", enabling countries to safeguard their non-trade concerns.  It has 
voiced strong opposition to the proposed tariff cappi ng.  Tariff quota commitments could be discussed 
on a case-by-case basis.  On domestic support, the Green Box should continue  without limitations.  
Amber Box measures should be reduced substantially, especially if  their impact is similar to export 
subsidies.  Norway could agree on a phase-out of expor t subsidies provided that its concerns in market 
access and domestic support are taken into account. 
(ii) Policy developments 
13. The applied average tariff on agricultural goods  (ISIC Rev.2 definition) is 22.2% in 2004 
(38.2% under the WTO definition) (Chapter III(2)( iii)).  While agricultural products not produced 
domestically are generally subject to low or zero ta riffs, products such as live animals, cereals, and 
dairy products face relatively high tariff protecti on.  Imports of fruit and vegetables (potatoes, 
cabbages, cauliflower, tomatoes, Brussels sprouts, lettuce, cucumbers, artichokes, asparagus, celery, 
peppers, and others) are subject to seasonal tariffs (Chapter III(2)(iii)).  Preferences are granted to 
other EEA and EFTA states, to countries with wh ich EFTA has free-trade agreements, and under 
Norway's GSP scheme.  However, average tariffs on agricultural products under Norway's free-trade 
agreements are generally just slightly below the average MFN tariff rate (Table III.3).  Processed 
agricultural goods imported into Norway from its pref erential partners are subject to customs duties 
comprising an industrial and an agricultural com ponent.  While industrial components usually enjoy 
tariff-free treatment, tariff reductions on agricultural components are still limited.  As a result of high 
border protection, consumer prices for agricultu ral products are higher in Norway than in 
neighbouring countries.  According to the author ities, cross-border shopping of food products has 
become an issue and amounted to approximately NKr 1.5 billion in 2002.  The import regime for agricultural products, including tariff quotas, is administered by the Norwegian Agricultural Authority. 
                                                     
 
2 In the 2003 Agricultural Agreement, it was decided to follow the calendar year as of 2004;  however, 
target prices will continue to be valid from 1 July to 30 June.   
3 WTO document G/AG/N/NOR/37, 11 November 2002. 
4 WTO document TN/AG/GEN/1, 14 March 2003. Norway WT/TPR/S/138 
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14. Average bound rates on agricultural goods remain  well above applied duties.  The average 
bound rate is 150.2% in 2004, and there is wide  dispersion, ranging from zero on sugar for human 
consumption to 2,355.9% on flours, meal  and pellets, meat and meat offall.  
15. As established by Ministry of Agriculture  Regulation No. 1315 of 18 December 2000, the 
NAA and the Norwegian Customs and Excise may decide to reduce tariffs on agricultural goods 
temporarily by means of administrative decision.  Administrative tariff reductions are general or 
individual.  General tariff reducti ons are provided for one or more products (mainly meat, plants, and 
vegetables) for a limited time period and apply auto matically to all importers, with no quantitative 
restrictions.  The levels of tariff reductions are set with consideration to target prices set out in the 
annual Agricultural Agreement.  In 2003, the NAA granted 332 general administrative tariff 
reductions (410 in 2002 and 558 in 2001).  Individu al tariff reductions may be granted to importers 
upon application and are limited to a specified quantity  of a particular product.  Such reductions are 
granted either as a supplement to domestic produc tion (when the imported products are distinctly 
different in taste or use from domestic ag ricultural products) or on products imported for non-
agricultural purposes, e.g. wheat for fish farming.   The majority of individual tariff reductions are 
granted for imports of preparations of vegetables, fruit, nuts or other parts of plants.  In 2003, the 
NAA granted 2,456 individual administrative tariff re ductions (2,891 in 2002 an d 3,009 in 2001).   
16. Tariff quotas are applied to ten eight-digit HS headings, on which Norway made minimum 
market access commitments under th e WTO Agreement on Agriculture (Table IV.4).  In addition, 
Norway has four global quotas at the HS eight-digit level and one quota at the two-digit level (meat 
for promotional fairs and product testing).  Some pr oducts (cheese, hay, stra wberries) are subject to 
preferential tariff quotas under the EEA/EFTA and rela ted bilateral agreements  (in total 37 quotas);  
others (e.g. honey, corned beef , and some canned vegetables) are subject to preferential duty-free 
tariff quotas (eight in total) under Norway's GSP scheme for developing countries.  All the quotas are 
administered by means of licence (Chapter III(2)(v)). 
Table IV.4 
Tariff quotas and total imports for produc ts under minimum access commitment, 2002-03 
(Tonnes) 
Description of products Tari ff item number(s) Tariff quota Imports 
(2002) Imports 
(2003) 
Minimum access quota     
Meat for promotional fairs and product  testing Chapters 02 and 16 35 12 8 
Meat of bovine animal, frozen 02. 02.1000; 2001; 2009; 3001 1,084 868 1,061 
Meat of swine, frozen 02.03.2100 1,381 0 1,381 
Meat of sheep and goats, fresh, chilled or frozen 02.04.1000;  2100; 2200; 3000; 
4100; 4200; 4300; 5000 206 54 89 
Meat of Gallus domesticus 02.07.1200 221 4 10 
Meat of turkeys, frozen 02.07.2500 221 0 0 
Meat of poultry ducks, geese and guinea fowl, 
frozen 02.07.3300 221 27 53 
Meat of game 02.08.1000; 9030; 9099 250 184 202 
Butter 04.05.1000 575 299 284 
Hens eggs 04.07.0019 1,295 247 172 
White cabbage 07.04.9013;  9020 134 0 0 
Red cabbage 07.04.9040 134 68 0 
Apples 08.08.1011 8,000 7,592 7,207 
Pears 08.08.2021 250 247 246 
Turkey roll 16.02.3101 20 7 20 
Source : Information provided by the Norwegian authorities. 
17. Out-of-quota tariff rates are set explicitly in  the Norwegian Tariff Schedule for products 
subject to tariff quotas.  In-quota tariff rates, determined under minimum access commitments during WT/TPR/S/138 Trade Policy Review 
Page 74 
 
 
the Uruguay Round, are one third of the MFN rates.  Effective 1 July 2003, Norway reduced by 25%, 
on a unilateral basis, the in-quota tariffs for frozen meat  of bovine animals, swine, poultry, turkey, and 
duck, as well as for butter and eggs.  Applied out-of-quota rates under Norway's minimum access 
commitments are all specific, determined in krone  per kg.  Out-of-quota AVEs may reach three-digit 
levels on some vegetables (potatoes, tomatoes, cab bages, and other vegetables), as well as on meat.  
Accordingly, bound out-of-quota duty rates on farm and food products are also high, ranging up to 
372% in ad valorem  terms for milk products. 
18. Article 19 of the EEA Agreement provides for continued bilateral ne gotiations between the 
EU and Norway on trade in agricultural products.  As a result of such negotiations, an agreement 
between Norway and the EU entered into force on 1 July 2003, with  a view to deepening bilateral 
trade in agricultural products by granting, on a reciprocal basis, increased preferential concessions.5  
The agreement provides for the elimination of duties on a number of tariff lines (especially plants, 
fruit, and vegetables);  for various duty-free quotas;   and for the consolidation of enlarged cheese 
quotas by both sides.  The two parties also agreed to  resume bilateral trade negotiations in agriculture 
in two years. 
19. In the EEA negotiations, a separate protocol w as drawn up for trade in processed agricultural 
goods (Protocol 3);  it entered into effect on 1 January 2002.6  Product coverage was increased to 
include goods such as jam, margarine, and babyfood , and tariffs were reduced on a number of goods.  
As a general principle, the industrial compone nt of tariffs on these products will be zero. 
20. Norway has not invoked the special safeguard provisions of the WTO Agreement on 
Agriculture.7 
21. Norway continues to apply export subsidies on a number of agricultural products;  they are 
notified annually to the WTO (Table IV.5).  The reduction of actual outlays has gone beyond Norway's Uruguay Round commitment s;  their overall level fell by more than 70% between 1999 and 
2003.  Traditionally, cheese has accounted for the majo rity of subsidized exports.  Subsidies for meat 
exports peaked in 1999, benefiting from unused  cumulated potential am ounts for export subsidy 
(carried over), and volume limits.  Export subsidies are funded mainly through producer levies, but 
also through government transfers under the annual Agricultural Agreement.   
22. Domestic support for Norwegian farmers remain s high.  Border protection is compounded by 
a complex system of extensive domestic support,  which accounts for nearly 70% of all budgeted 
sector-specific state support.  The various support programmes are the result of the annual 
Agricultural Agreement between the farmer's uni ons and the Government.  In 2001, the total 
Aggregate Measurement of Support (AMS) notified to the WTO amounted to NKr 10,700 million, or some 70% of agricultural GDP, down from NKr 10,886 million (88% of agricultural GDP) in 1998 
(Table IV.6).  Despite its high level, the to tal AMS was still below Norway's related reduction 
commitment of NKr 11,449 million for the year.  Most of the AMS consists of implicit transfers 
through administered prices.  There is also support in  the form of deficiency payments;  however, this 
has been decreasing constantly si nce the beginning of the 1990s. 
                                                     
 
5 Official Journal of the European Union L 341, 17 December 2002, and L 156, 25 June 2003. 
6 The Protocol is available online at  http ://secretariat.efta.int/Web /EuropeanEconomicArea/ 
EEAAgreement/protocols/changed_protocols/protocol3.pdf.  Before January 2002, trade in processed 
agricultural goods between Norway and the European Communities was carried out in accordance with 
Protocol 2 of the free-trade agreement between Norway and the European Communities of 1973, last revised in 
1996. 
7 The most recent notification in this re gard is in WTO document G/AG/N/NOR/39, 
11 November 2002, referring to the year 2001. Norway WT/TPR/S/138 
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Table IV.5 
Export subsidies, 1999-03  
(NKr million, calendar year) 
 
Outlay allocated  Annual commitments under the 
WTO Agreement on Agriculture 
 1999 2000 2001 2002 2003  1999 2000 2001 2002 2003 
Bovine meat 223.1 33.4 12.8 4.2 4.5  48.4 35.0 35.0 35.0 35.0 
Swine meat 265.0 25.6 13.4 9.6 7.1  94.9 86.7 86.7 86.7 86.7 
Sheep meat 7.2 0.9 4.5 11.9 11.1  19.3 17.7 17.7 17.7 17.7 
Poultry meat 0.0 0.0 0.0 0.0 0.0  0.5 0.5 0.5 0.5 0.5 
Egg and egg products 18.4 17.2 17.0 10.9 7.1  18.8 17.2 17.2 17.2 17.2 
Butter 81.4 51.9 16.2 11.2 12.8  58.2 53.2 53.2 53.2 53.2 
Cheese 372.0 237.2 198.5 183.1 245.8  304.2 245.8 245.8 245.8 245.8 
Whey powder 2.3 0.0 0.0 0.0 0.0  0.9 0.03 0.03 0.03 0.03 
Fruit and vegetables 0.0 0.0 0.0 0.0 0.0  0.7 0.6 0.6 0.6 0.6 
Honey  0.0 0.0 0.0 0.0 0.0  0.2 0.08 0.08 0.08 0.08 
Processed agricultural 
products 32.5 27.0 27.2 30.5 31.1  39.8 36.4 36.4 36.4 36.4 
 
Source: WTO documents G/AG/N/NOR/ 28, 7 March 2001;  G/AG/ N/NOR/40, 11 November 2002;  and information 
 provided by the Norwegian authorities. 
Table IV.6 
Product-specific Aggregate Measurement of Support (AMS), 1999-01  
(NKr million)  
Total Aggregate Measurement of Support Description of basic products (measure type) 
1999 2000 2001 
Total market price suppo rt 11,428.0 10, 573.7 10,886.8 
Wheat (fixed farm gate price)a 336.3 427.6 336.8 
Barley (fixed farm gate price)a 742.1 596.0 576.1 
Oats (fixed farm gate price)a 400.2 357.1 330.0 
Milk (target price) 4,085.4 4,113.3 4,034.5 
Beef and veal (target price) 1,985.3 1,681.9 1,735.3 
Pork (target price) 1,868.7 1,466.1 1,993.1 
Sheep (target price) 672.9 677.7 732.7 
Poultry (target price)  789.1 778.5 715.3 
Eggs (target price) 463.3 401.4 341.5 
Potatoes (target price) 84.8 74.0 91.4 
Total associated fees and levies  -1,368.1 -1,020 -890.7 
Milk (associated fees and levies) -502.2 -372.9 -314.4 
Beef and veal (associated fees  and levies) -231.2 -166.3 -146.1 
Pork (associated fees and levies) -353.2 -255.7 -230.4 
Sheep (associated fees and levies) -60.2 -46.5 -82.8 
Poultry (associated fees and levies) -114.8 -99.1 -43.6 
Eggs (associated fees and levies) -106.5 -79.5 -73.4 
Total non-exempt direct payments 672.6 599.1 540.3 
Milk (base deficiency payments)  124.1 93.0 82.3 
Beef and veal (base deficiency payments)  266.2 259.1 217.4 
Sheep (base and wool deficiency payments)  275.9 247.0 240.6 
Eggs (contract production scheme)  .. .. .. 
Potatoes (deficiency payments)  6.4 0.0 0.0 
Fruit, berries and vegetables (fruit storage subsidy, transport 
subsidy)  .. .. .. 
Other product-specific budg etary outlays 78.5 78.5 81.0 
Other non-product specific AMS -75.0 11.9 31.8 
Total Aggregate Measurement of Support 10,786. 9 10,293.2 10,700.2 
a Since July 2001, these goods have also been subject to target prices. 
Source : WTO documents G/AG/N/NOR/30, 7 March 2001;  G/AG/N/NO R/36, 27 February 2002;  and G/AG/N/NOR/41, 
 10 March 2003.  WT/TPR/S/138 Trade Policy Review 
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23. Net outlays under the Agricultural Agreemen t reached some NKr 13,791 million in 2003 
(Table IV.7).8  Norway's Producer Support Estimate (PSE), as estimated by the OECD, was 72% in 
2003, the second highest of all OECD countries.9  Deficiency payments, structural income support, 
acreage and headage support, as well as the vacati on and replacement scheme are granted directly to 
farmers. Other programmes are mainly market regulation schemes and other indirect schemes.  
Market regulation outlays are primarily financed  through the marketing levy charged on producers 
when selling a product. 
Table IV.7 
Support to the agriculture sector, 2000-03 
(NKr million)  
 2000 2001 2002 2003 
Total outlays of the Ministry of Agriculture 16,811.9 14,050.8 14,758.0 13,790.9 
  Less:  revenue 1,413.4 5,151.5 823.1 748.8 
  Net outlays 15,398.5 8,899.3 13,934.9 13,042.1 
Total outlays under the agricultural agreements 13,061.9 11,991.9 13,689.7 11,729.1 
  Less:  revenue 121.8 133.0 201.8 122.0 
  Net outlaysa 12,940.1 11,858.9 12,487.9 11,607.1 
Agricultural Agreements 10,231.5 10,387.7 10,296.9 9,971.1 
  Agricultural Development Fund 620.3 734.0 756.0 687.8 
  Market Regulation 84.8 80.4 71.5 83.7 
  Price support 2,186.3 2,426.6 2,241.9 2,078.8 
      Milk and milk products 521.1 535.9 504.2 458.5 
      Beef, veal, sheep-meat and pig-meat 747.0 911.2 896.6 720.8 
      Cereals 663.8 670.6 517.0 581.0 
      Wool 135.4 165.8 179.6 165.7 
      Other 119.0 143.1 147.5 152.8 
  Other direct payments to producers 7,340.1 7,146.7 7,227.5 7,120.8 
      Structural income support 1,329.8 1,306.5 1,306.2 1,243.5 
      Headage support, animals 2,283.9 2,234.7 2,251.0 2,258.0 
      Acreage and cultural landscape scheme 3,329.5 3,210.3 3,259.0 3,216.9 
      Production support on market crops 102.5 48.6 56.0 51.3 
      Transport support, meat and eggs 60.4 79.7 82.0 80.5 
      Other 324.0 266.9 273.3 270.6 
 
a Figures will not equal the sum of the subsidy categories below because some schemes are not included in the SCM notifications , 
 for example the social welfare schemes.  
Source:  WTO documents G/SCM/N/71/NOR, 25 June 2002;  G/SCM/N/95/NOR/Add.1, 1 October 2003;  and information 
 provided by the Norwegian authorities.  
24. Target prices are used to support producers of cer eals, milk, beef and veal, pork, and potatoes.  
These administered prices are roughly between twice and four times the external reference prices.  No 
major changes have taken place in the beneficiary st ructure of domestic support;  support per unit of 
production is highest in the milk industry, followed by different types of meat.  Milk producers also remain the main beneficiaries in absolute terms;   in 2001, they received some 37.6% of the total 
AMS, followed by pork producers with 18.6%, and beef and veal producers with 16.2%.  Subsidies on 
agricultural inputs are limited in scope, with the not able exception of animal  feed concentrates.  
Farmers receive an insemination subsidy, and fertilizers and p esticides are exempt from VAT. 
25. Norway continues to provide support under various production-limiting schemes (Blue Box 
measures), as well as Green Box measures.  The amount spent on measures included under the Green 
Box increased from less than NKr 3.7 billion in 1997 to more than NKr 4.3 billion in 2001 
                                                     
 
8 This figure is not directly comparable with th e AMS, because it refers to actual outlays from the 
Ministry of Agriculture and includes Blue Box and Gr een Box measures, while the AMS excludes these, and 
includes revenue forgone through price support, i.e. targ et prices, and possible disbursements from Ministries 
other than Agriculture. 
9 OECD (2004). Norway WT/TPR/S/138 
 Page 77 
 
 
(Table IV.8).  Payments under the Blue Box have remained substantially larger than those under the 
Green Box;  they amounted to over NKr 7.3 billion in 2001.  Three types of Blue Box measures are in place:  payments based on fixed areas and yields (41%  of total payments in 2000);  payments made on 
85% or less of the base level of production (29% of  total payments);  and headage support payments 
(30% of total payments).  Headage and acreage support is paid mainly within the Acreage and 
Agricultural Landscape Scheme and the Headage Support programme, based on cultivated area and 
number of animals, and differentiated by region, farm  size, and type of animal.  To receive support, 
certain environmental criteria must be met;  ther e is also a maximum rate of headage support per 
farm. 
Table IV.8 
Measures exempt from the reduction commitment, 1999-01  
Value of the measure during the reporting period 
(NKr million) Type of measure 
1999 2000 2001 
Green Box 4,275. 1 5,011.6 4,315.8 
  General services 879.5 909.2 899.0 
  Public stockholding for food security purposes 633.1 701.5 718.0 
  Payments for relief from natural disasters 31.0 27.9 14.0 
  Structural adjustment assistance provided through:    
    Producer retirement programmes 29.6 62.7 85.8 
    Resource retirement programmes 148.6 720.7 0.0 
    Investment aids 848.7 770.5 858.1 
  Environmental programmes 216.8 264.2 264.1 
  Regional assistance programmes 11.0 10.3 10.3 
  Other 1,476.8 1,544.6 1,466.5 
Blue Box 7,673.9 7,669.4 7,329.9 
  Payments based on fixed areas  and yields 3,175.6 3,122.5 2,969.3 
  Payments made on 85% or less of the base level of production of which:    
    Structural income support to dairy farmers 1,394.0 1,329.8 1,175.6 
    Regional deficiency paymen ts to milk production 450.4 427.6 381.7 
    Regional deficiency payments to meat producers 512.3 472.6 538.6 
  Livestock payments made on a fixe d number of head 2,141.6 2,316.9 2,264.7 
Total of table 11,949.0 12,681.0 11,645.7 
Source : WTO documents G/AG/N/NOR/ 30, 7 March 2001;  G/AG/N/NOR /36, 27 February 2002;  
G/AG/N/NOR/36/Corr.1, 10 March 2003;  and G/AG/N/NOR/41, 10 March 2003.  
26. On behalf of the Ministry of Agriculture, Innovation Norway provides credit to farmers at 
below market rates.10  Credits are channelled through private banks and must be used for investments 
in the agricultural sector or, for farms undergoing r estructuring, for alternative economic activities.  
The interest rate on such loans is expressed as a pe rcentage of market rates.  Until July 2004, the 
interest rate was fixed at 5.0%, compared with a ma rket rate of approximately 5.8% as at June 2004.  
The grant element of these credits is contained in  the Agricultural Rural Development Fund;  NKr 119 
million are budgeted for this purpose in 2004. 
27. Norway applies various levies and fees on agri cultural products.  Marketing fees are paid by 
producers, mainly for market regulation purposes;  they are levied on all major agricultural goods, with the exception of vegetables, potatoes, fruit and berries (Table IV.6).  Fees are charged per kg. 
and are determined on the basis of costs associated  with market regulation.  The overall costs are 
calculated on the basis of:  transport of goods betw een different parts of the country, storage, and 
export regulation.  Fees may vary throughout the year  and according to the market situation.  The fee 
system is also used to stimulate demand or to di scourage overproduction.  Fees are paid only by local 
                                                     
 
10 In January 2004, Innovation Norway replaced the Norwegian Industrial and Regional Development 
Fund, previously responsible for this type of support. WT/TPR/S/138 Trade Policy Review 
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farmers and are not levied on imports.  In  2001, total payments of fees amounted to 
NKr 890.7 million. 
28. Compliance with SPS regulations is verified by the Norwegian Food Safety Authority, 
established in January 2004, and the Customs Admi nistration (Chapter III(2)(vii)(c)).  Agricultural 
imports and imports of foodstuff are subject to  various fees and taxes (Chapter III(2)(iv)). 
(iii) Policies by group of products 
(a) Dairy products 
29. Dairy products are the most heavily regulated  subsector of Norway's agriculture.  The 
authorities indicate that milk production is of vi tal importance in several rural regions, as other 
activities are scarce.   
30. Milk producers receive various forms of support,  consisting of structural income support, 
regional deficiency payments, and base deficiency payments.  Payments are determined each year 
under the Agricultural Agreement according to mark et conditions.  Regional deficiency payments 
vary according to the region;  the highest support of NKr 1.68 per litre is paid in Norway's northernmost districts.  Structural income support is  also provided, with a view to equalizing income 
between smaller and larger holdings.  The support is paid as a lump sum to producers with more than 
five cows or 27 goats for milk production;  for smaller holdings, the payment is reduced by a linear 
sum per animal.  In 2003, the payment for cow milk  varied between Nkr 59,000 in southern Norway 
and NKr 65,000 in the northernmost part of the country.  For goat milk, the payment was NKr 65,000 in all parts of the country.  Since 1 July 2002, base deficiency payments have been available to 
producers of goat milk only;  in 2003 the payment amounted to NKr 1.844 per litre.  Price support for 
milk and milk products totalled NKr 504.2 million in 2002 and NKr 458.5 million in 2003. 
31. Goat and cow milk are distributed in accordan ce with the milk marketing scheme established 
in 1996.  The scheme, which is managed by th e Norwegian Agricultural Authority and includes a 
price pooling system, is aimed at equalizing producer prices for milk irrespective of end use or the region where it is produced (e.g. remote areas).  A modified system, introduced in 2004, separates 
milk supplied as a commodity from milk supplied for further processing. 
32. Supply control measures on milk include a quota system, which has been in place since 1983.  
The system aims to maintain the structure and geographical distribution of production by regulating the extension and establishment of milk production ente rprises.  In order to allow existing enterprises 
to extend production or the establishment of new mi lk producers, farmers of cow milk are permitted 
to sell up to 30% of their quota to other Norwegian producers.  The maximum quota for a single farm, 
including additional quotas bought from other farmer s, is capped at 375,000 litres of cow milk and 
188,500 of goat milk.   
33. Dairy products are subject to an average ad valorem  equivalent tariff of 52.9% in 2004 (rates 
range from 0% to 164.8%);  the average bound rate is 279.1%.  Imports of butter are subject to 
minimum access commitments under the WTO Agreem ent on Agriculture;  they amounted to 299 
tonnes in 2002, equivalent to a filling ratio of 52% .  Butter and cheese also receive the bulk of outlays 
for export subsidies (Table IV.5).  Imports of dairy products amounted to US$44.8 million in 2003;  
exports value was almost double, at US$84.5 million.   Norway WT/TPR/S/138 
 Page 79 
 
 
(b) Meat, wool, and eggs 
34. The meat market is regulated by the Norwegian Farmers' Meat Marketing Organization 
(Norsk Kjøtt);  regulation activities are guided by the system of target wholesale prices established 
under the Agricultural Agreement, and include mo stly quantity and price stabilization measures. 
35. Various forms of support are available for producers of meat, wool, and eggs.  Regional 
deficiency payments of up to NKr 13 per kg. are granted to meat producers in regions classified as 
less favoured.  Transport support is granted to equali ze differences in farm-gate returns caused by the 
distance of farms from slaughterhouses, processing pl ants, and major consumer markets.  Producers 
of sheep also receive base deficiency payments  of NKr 3.81 per kg. (undifferentiated by region), 
while base deficiency payments to producers of bovi ne animals were abolishe d on 1 January 2004.  In 
2003, outlays for price support for beef, veal, mutt on, poultry, and pork totalled NKr 726.8 million.  A 
deficiency payment for wool is provided with a view to securing producer prices for wool;  total 
outlays amounted to NKr 172.9 million in 2003.  Egg producers based in rura l areas (western and 
northern Norway and the counties of Trondelag) rece ive deficiency payments and transport support.  
Outlays for transport support for producers of m eat and eggs were NKr 80.5 million in 2003, and 
regional deficiency payments for eggs totalled NKr 4.4 million. 
36. Meat products face an average tariff of 136.6% , with tariffs ranging from 0% to 588.5%.  The 
current average bound rate is 345.6%.  Minimum access commitments are in place for a number of meat products and eggs.  Various types of meat, e ggs, and egg products also receive export subsidies 
(Table IV.5).  Imports of meat products amounted to US$87.1 million in 2003;  exports were 
US$46.2 million.   
(c) Grains 37. A new market system for grains (wheat, rye, oats, and barley) was established in July 2001 
with the abolition of guaranteed farm-gate prices.  Since then, the grain subsector has the same market 
system as other agricultural goods;  this includes admi nistered target prices at the wholesale level, 
rather than at the producer level.  Price suppor t for cereals totalled NKr 581 million in 2003.  The 
Norwegian Agricultural Purchasing and Marketing Cooperative (NAPMC) acts as market regulator 
for the grain market with a view to ensuring that farmers receive the target prices agreed upon in the 
Agricultural Agreement.  Target prices for wheat and feedgrain continuously decreased between 2001 
and 2004 (Table IV.9). 
Table IV.9 
Target price for wheat and feed grain  
(Nkr per kg.) 
 Wheat Feed grain (mix price of barley and oats) 
2001 2.31 1.85 
2002 2.26 1.80 
2003 2.23 1.77 
2004 2.15 1.72 
 
Source:  Information provided by the Norwegian authorities. 
38. The average applied tariff on grain mill pro ducts is 33.7%, with ra tes ranging from 0% to 
204.2%.  Imports amounted to US$58.7 million in 2003, whereas exports were just US$1.3 million. WT/TPR/S/138 Trade Policy Review 
Page 80 
 
 
(b) Vegetables and fruit 
39. Regional deficiency payments are provided to producers of fruit, berries, and vegetables;  
total outlays amounted to NKr 61.7 million in 2003.   In the horticultural subsector, transport and 
storage support is also provided.  Market regul ation programmes are in place only for apples and 
potatoes. 
40. Fruit and vegetables face an average applied tari ff of 42.5% in 2004, with a minimum tariff of 
0% and a maximum of 429.8%.  Many types of fruit and vegetables are subject to seasonal tariffs 
(Table AIII.1).  Imports of fruit and vegetables am ounted to US$215.0 million in 2003;  exports were 
US$20.4 million. 
(3) FORESTRY , WOOD, AND PAPER PRODUCTS  
41. The forestry industry was Norway’s largest export industry until the middle of the 20th 
century.  Since Norway's last TPR in 2000, the l ong-run downward trend of the forest sector has 
continued.  The sector contributed less than 0.2% to Norway's GDP in 2003;  pulp and paper production contributed a further 0.3% to GDP, and wood and wood production 0.4%.  The forestry, paper, and wood subsectors (combined)  employed about 1.5% of the la bour force in 2002.  Exports of 
forestry and logging totalled US$16.4 million in 2003 ;  in addition, Norway exported wood products 
(including furniture) worth US$645.4 million and pa per products worth US$1,113.5 million.  The 
most important export markets are Germany, Sweden, and the United Kingdom. 
42. Forests cover about 39% of Norway's land area;  approximately 88% of the forest area is in 
private ownership, divided among about 120,000 properties.  The authorities indicate that the 
expansion of the forest area is no longer a political  goal.  The Forest and Forest Protection Act of 
1965, as amended most recently in 1997, is Norway's main legislation on forestry.  Its main objectives 
are to promote forest production, afforestation and the protection of forest land, while promoting the 
function of forests as an environment fo r animals and plants and a source for, inter alia , recreation 
and hunting.  The authorities indicate that a new Forest Act is under preparation (as at June 2004).  The main objective of new legislation is to establis h a more up-to-date and f unctional legal framework 
for the management of the forest resources by, inter alia , clarifying forest owners' responsibility with 
respect to environmental issues. 
43. Various forms of support are granted to the forestry subsector.
11  Although the number of 
support schemes has remained unchang ed since Norway's last TPR, s ubsidies granted to the subsector 
have fallen substantially:  to tal support amounted to NKr 242.4 million in 2002, down from 
NKr 300 million in 1998 and 1999 (Table IV.10).  The support schemes are administered by the 
National Forest Service under the Ministry of Agri culture.  Applied tariffs on forestry products are 
low, averaging 0.4% in 2004 (ISIC Rev.2 definition) , while logging products enter Norway duty-free. 
44. Tax concessions are available under the Forest Trust Fund and the Five-Year Average Tax 
Assessment Programme.  The Forest Trust Fund is a mandatory forest investment scheme to encourage 
long-range private investments in forestry based on  sustainable use of forest resources.  It was 
established in 1965 under the Forest and Forest Prot ection Act;  payments into the Fund are governed by 
regulations issued yearly.  The Forestry Act requires a ll forest owners to place into the Fund from 4% to 40% 
of their gross sales of roundwood.  At the time of sale, the seller automatically deducts a pre-decided 
percentage from the sale receipts.  This amount is depos ited in the forest owner's trust fund account and may 
be used for specified forestry investments;  independe ntly of the size of the investment, 40% of the amount 
disbursed from the fund account for investment is consider ed as taxable income the year the disbursement is 
                                                      
11 WTO document G/SCM/N/95/NOR, 30 August 2002. Norway WT/TPR/S/138 
 Page 81 
 
 
made.  Forest owners do not receive the inte rests on their fund account;  in accordance with the 
Forestry Act, the interest is used for the benefit of forestry at municipal, county, or national levels.  In 
2002, a total of NKr 141 million was disbursed from the Forest Trust Fund for investment eligible for 
tax advantages.  The non-taxable amount (subsi dy element involved) totalled NKr 46 million, 
involving 13,000 forest owners.  
Table IV.10 
Assistance to the forestry subsector, 1997-02 
(NKr million) 
Assistance programme Type of measure 1997 1998 1999 2000 2001 2002 
Tax concessions in forestry, the Forest Trust Fund, 
and the Five-Year Average Tax Assessment Tax concession 77.0 76.0 81.0 70.0 .. 66.0 
Subsidies for forest management planning Grant 36.1 35.7 36.8 33.9 .. 41.6 
Subsidies for afforestation and silvic ulture Grant 93.5 106.0 104.0 94.8 .. 59.0 
Subsidies for construction of forest roads Grant 54.7 66.2 68.7 67.3 .. 62.2 
Subsidy for harvesting of roundwood in difficult 
terrain Grant 7.7 9.6 10.1 9..4 .. 6.5 
Subsidies for roundwood sale and transport Grant 1.6 7.4 3.5 2.1 .. 3.5 
Subsidy for manual thinning Grant .. .. .. 6.3 .. 3.6 
Total   270.6  300.9  304.1 283.8 .. 242.4 
.. Not available.  
Source:  WTO documents G/SCM/N/38/NOR, 25 August 1998;  G/SCM/N/38/NOR/Suppl.1, 19 October 1999;  
G/SCM/N/48/NOR/, 19 Oct ober 1999;  G/SCM/N/60/NOR, 17 August 2000;   G/SCM/N/71/NOR, 25 June 2002;  
and G/SCM/N/95/NOR, 17 July 2003. 
45. Under the Five-Year Average Tax Assessment Programme, forest owners may benefit from 
an "average tax assessment", whereby income tax is based on average income over the last five years. 
Against the background of a progressive income tax, th is means that the marginal tax percentage may 
be reduced compared with other income groups char ged on the basis of the previous years income.  
Under this method forest owners thus receive a two- year tax credit.  Tax revenue forgone for 2002 is 
estimated at between NKr 15 to 20 million. 
46. The Subsidies for Forest Management Planni ng programme makes grants available to all 
types of forest land and owners to stimulate fo rest management planning and promote sustainable 
forestry.  Grants cover resource registration survey s of larger designated areas and preparation of 
individual forest management plans on individual properties, as well as training.  Subsidy rates are 
decided by the County Governor, based on the total r esource registration and plan preparation costs.   
Subsidy rates for preparing individual forest ma nagement plans range between 40% and 60%;  area 
registrations may also be subsidized.  Normally, subsidies are not granted to properties that have 
received payments from this programme within the l ast ten-year period.  Total support expenditures in 
2002 amounted to NKr 43.8 million. 
47. The aim of the programme of Subsidies for C onstruction of Forest Roads is to encourage 
construction and reconstruction of forest roads for tr ansport of roundwood from the forest.  Rules for this 
programme are contained in the Regulations on Planni ng and Approval of Roads for Agricultural Purposes of 
20 December 1996.  All forest owners are eligible for grants for construction of new forest roads and for 
reconstruction of existing ones;  howev er, priority is given to the norther n, western, and mountainous regions.  
Support is calculated as a percentage of total costs.  Maximum grant rates vary according to the region:  75% 
for northern Norway;  60% for western Norway and mountainous districts;  and 40% for other forestry 
regions.   Expenditure under this scheme amount ed to NKr 62.2 million in 2002. 
48. The programme of Subsidy for Harvesting of Roundwo od in Difficult Terrain consists of grants for 
sustainable utilization of forest resources in steep terrain .  Subsidies are allocated pe r hectare harvested, based WT/TPR/S/138 Trade Policy Review 
Page 82 
 
 
on the steepness of the terrain and length of the hillside.  The programme of Subsidies for R oundwood Sale 
and Transport in Forestry is aimed at supporting wo od transportation in western and northern Norway.  
The grants for transport cover only part of the costs exceeding the normal national average.  The 
Subsidy for Manual Thinning is available throughout the country for felling by power saw.  Individual 
county governors stipulate the extent to wh ich funds are allocated to this scheme. 
49. Until its abolition in 2003, the programme of S ubsidies for Afforestation and Silviculture 
were aimed at stimulating the establishment and composition of quality forests and securing district employment.  Grants were available throughout the c ountry, although priority was given to northern and 
western Norway and mountainous regions.  All forest owner categories with a property ex ceeding one 
hectare of productive forestland were eligible.  The gr ant was given either as a percentage of the total 
verified costs or as a per hectare subsidy.  Subsid y rates differed according to the region and type of 
work.  Outlays amounted to NKr 59 million in 2 002, down from more than NKr 100 million in 1998 
and 1999. 
50. In addition to the various subsidy programm es, the Government also provides funding for 
research related to forest activities.  The total alloca tion of public funds to forest research is estimated 
at NKr 100 million for 2002.
12  The two main programmes financed by the Ministry of Agriculture are 
the Wood Development and Innovation Programme and the Forest Research Programme.  
(4) FISHING AND AQUACULTURE  
(i) Main features  
51. The long Norwegian coastline and rich fishing gr ounds in territorial waters make Norway the 
biggest fishing nation in Europe;  it ranks number te n in the world measured by quantity, and third by 
export value.  However, the contribution of fishin g and fish-farming to Norway's GDP has declined 
continuously, to about 0.3% in 2003.  Total catch  in 2003 amounted to 2.55 million tonnes, a slight 
decrease over the previous years (Table IV.11).  The main species by volume are blue whiting, 
herring,  capelin, and cod.  The first-hand value of Norway's total catch was NK r 8.9 billion in 2003.   
Table IV.11 
Quantity of catch by fish species, 1995-03 
('000 tonnes) 
Year Total Herring Blue 
whiting Cod Sand 
eel Mackerel Capelin Deep 
water 
prawn Haddock Norway 
pout Tusk Sprat Other 
fish 
species 
1995 2,524 687 261 365 263 202 28 39 80 118 19 41 421 
1996 2,647 763 356 358 161 137 208 42 97 103 20 59 344 
1997 2,862 923 348 402 351 137 158 42 106 47 14 7 327 
1998 2,850 832 571 322 343 158 88 56 79 28 21 35 317 
1999 2,618 827 534 257 188 161 87 64 53 51 23 22 351 
2000 2,702 800 553 220 119 174 375 66 46 53 22 6 268 
2001 2,683 581 574 209 187 181 482 63 52 27 19 12 296 
2002 2,743 577 558 229 176 184 522 68 55 26 18 3 327 
2003 2,545 560 851 217 30 163 249 67 60 12 13 3 320 
Source:  Directorate of Fisheries, Statistical Yearbook of Norway , various issues. 
52. Exports of fish and fish products represented 5.3% of Norway's total merchandise exports in 
2003, totalling some US$3,551 million.  The main exported species were salmon, cod, mackerel, and 
herring.  The main markets for fish and fish produc ts were Denmark, Russia, and Japan.  Imports of 
fish and fish products totalled US$347 million in 2003.   
                                                      
12 Ministry of Agriculture (2003), p.13. Norway WT/TPR/S/138 
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53. Norway had 17,335 registered commercial fi shermen in 2003 (down from about 25,000 in 
1995), of which 13,332 full time.  Th e number of vessels has continued to decline:  by the end of 
2003, 9,934 fishing vessels were registered, of whic h 7,568 were covered vessels and the rest open 
boats.  Some 2,200 vessels operate all-year round;  5,678 of the registered vessels were defined as 
active, with catches exceeding a minimum level of NKr 27,085.13  
54. The production of farmed fish and shellfis h has risen steeply since the industry was 
established at the beginning of the 1970s, and expanded rapidly during the 1980s. The natural 
environment, with deep sheltered fjords, constitut es ideal conditions for fish-farming and aquaculture, 
and in 2003, Norway accounted for about 44% of the wo rld production of farmed Atlantic salmon.  In 
2002, about 4,500 people were involved in work on  fish and shellfish farms.  Production in 2003 
amounted to 509,000 tonnes of salmon, of which about 95% is exported, and 75,000 tonnes of rainbow trout.  In addition, small quantities of ot her species are produced, such as cod, char, halibut, 
blue mussel, oyster, and scallop.  The authorities indicate that the export value of farmed fish and shellfish represents about 43% of the to tal value of Norwegian fish exports. 
(ii) Policy developments 
55. Policies for the fisheries and aquaculture indu stries are formulated by the Ministry of 
Fisheries.  No major changes have taken place in the legal framework regulating the fisheries sector 
since Norway's last TPR.
14  Aquaculture in Norway is governed by Act No. 68 of 14 June 1985 
relating to the breeding of fish, shellfish, etc;  Act No. 47 of 15 May 1992 relating to salmon and 
inland fish;  and Act No. 118 of 21 December 2000 relating to searanching.  The Act of 1985 
establishes that all farming of fish and shellf ish requires a licence from the authorities.  For sea-
farming of salmon and trout, there is a system of limited entry;  no new licences were issued between the mid-1980s and 2001, while 30 new licences were i ssued in 2002 and another 50 in 2003.  Each 
licence, which usually covers two or three locations , is subject to a one-off charge of NKr 5 million 
(NKr 4 million for the two northernmost counties).  In 2003, the first licences for searanching of 
lobster and scallops were allocated;  the total number of licences for this type of aquaculture is limited 
to 40. 
56. Since 1996 the production of salmon has been regulated by feed quotas. The purpose of the 
quotas has been to regulate the growth in domestic production.  Quotas are set by administrative decision according to the production volume of each li cence;  in 2004 a standard licence can utilize up 
to 852 tons of fish feed.  However, the curre nt quota regime will be terminated effective 
1 January 2005.  The Ministry of Fisheries is working on a new system for regulating production. 
57. Following a dumping and countervailing investiga tion by the European Commission in 1996, 
the Salmon Agreement between the Commission and th e Norwegian Government, together with price 
undertakings between Norwegian e xporters and the Commission, entered into force in 1997.  The 
agreement provided for indicative quotas on exports of salmon to the EU, together with minimum 
export prices, and an additional export levy of 2.25% payable to the NSEC.  The agreement was 
originally scheduled to expire on 30 June 2002, bu t was prolonged until 28 Febr uary 2003.  The price 
undertakings regulated trade in salmon products un til May 2003, when a review confirmed that no 
                                                     
 
13 The minimum catch requirement (to be defined as an active vessel) was raised from NKr 10,000 in 
2003.  The threshold will be inflation-adjusted. 
14 The main laws are:  Act No. 19 of 17 June 1966 (the Fishing Limit Act);  Act No. 40 of 3 June 1983 
on salt water fisheries;  Act No. 68 of 14 June 1985 relating to the breeding of fish, shellfish, etc.;  Act No. 47 of 
15 May 1992 concerning salmon and inland fish, etc.;  Act No. 54 of 13 June 1997 concerning fish disease;  
Act No. 9 of 27 April 1990 relating to exports of fish and fish products;  Act No. 34 of 24 June 1994 on the marketing of raw fish;  and Act No. 15 of 26 Marc h 1999 relating to the participation in fisheries. WT/TPR/S/138 Trade Policy Review 
Page 84 
 
 
dumping or subsidizing was taking place. Although Norway's salmon exports to the EU remained 
below the indicative ceilings, the authorities noted that the price undertakings represented an 
important export restriction and ha ve led to a significant reduction of Norway's market share in the 
EU.  As a result of the introduction of the e xport levy, funds for salmon marketing increased 
substantially and the NSEC increased marketing efforts accordingly.  After the expiry of the 
agreement, Norway returned to a levy of 0. 75% on salmon exports to all markets, effective 
1 January 2004.  
58. Norway's exports of farmed salmon to the EU  were subject to countervailing measures in 
2001 and 2002.  In addition, the EU initiated anti- dumping actions on Norway's exports of rainbow 
trout and salmon on three occasions, and imposed final anti-dumping duties on Norwegian salmon in 
July 2001, and provisional anti-dumping duties on Norwegian rainbow trout in September 2003.   In 
1991, the United States imposed anti-dumping a nd countervailing duties on Norwegian salmon.  
These measures are still in force. 
59. In June 2003, Norway and the European Union ag reed on a bilateral solution for trade in fish 
after EU enlargement.  Norway received compensa tion for the loss of free trade in fish with the 
accession countries in the form of duty-free import quotas to the EU for its exports of herring and 
mackerel.  The quotas are 67,000 tons of frozen herri ng filets and flaps, 44,000 tons of frozen round 
herring, and 30,500 tons of frozen round mackerel.  In addition, the EU reduced its tariffs on frozen 
flaps of herring from 15% to 3% and increased its existing quota on frozen peeled shrimp from 5,500 
to 8,000 tons.  Norway committed itself to allo w EU vessels to land and transport fish through 
Norway for further sale in the EU without p assing through the fisheries sales organizations. 
60. The Norwegian Seafood Export Council (NSEC), estab lished in July 1991,  is responsible for 
the marketing of seafood in and from Norway.  Its activities are financed by a statutory fee on exports of fish and fish products (Chapter III(3)(ii)).  The NSEC operates under the Fish Export Act of 1990 
and the Fish Export Regulation of 1991.  Its Bo ard is composed of representatives from the 
Norwegian Federation of Trade Unions, the Norweg ian Fishermen's Association, and the Norwegian 
Federation of Fish and Aquaculture Industries.  The NSEC's marketing budget was NKr 202.8 million 
in 2003.  Exporters of fish need an approval from the NSEC. 
61. Norway's bound and applied tariff on most fish a nd fish products is zero.  However, various 
fish waste products used for animal feed f ace high tariffs, with AVEs of up to 588.5%.   
62. Together with other WTO Members, Norway submitted a paper to the Negotiating Group on 
Rules suggesting possible categorizations of subsidies in the fisheries subsector.  It proposed using the 
various categorization schemes presented as a starti ng point for addressing subsidies in the fisheries 
subsector in a more differentiated way.
15 
63. The authorities state that Norway's marine res ource management is based on the principles of 
sustainable harvesting, multi-speci es approach, cooperation with other fisheries nations, and an 
efficient control and enforcement policy.  Various c ontrol instruments have been put in place, with a 
view to limiting catch levels and reducing the capacity of the fleet. 
64. Fish resources are managed and controlled th rough the establishment of total allowable catch 
(TAC) levels.  TACs are established according to agreements between relevant coastal states and national quotas, taking into account scientific advice provided by the International Council for the 
Exploration of the Sea (ICES).  Agreements at the bilateral level are negotiated yearly and include 
exchanges of quotas; they currently exist with th e EU, the Faroe Islands, Greenland, Iceland, and 
                                                     
 
15 WTO document TN/RL/W/58, 10 February 2003. Norway WT/TPR/S/138 
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Russia.  At the plurilateral level, Norway particip ates in an agreement with the EU, Russia, the Faroe 
Islands, and Iceland, for the management of the Norwegian Spring Spawning Herring.  Norway also 
participates in an agreement, for the management of  mackerel in the northeast Atlantic, with the EU 
and the Faroe Islands.  Norway has ratified the Agre ement for the implementation of the provisions of 
the United Nations Convention on the Law of th e Sea of 10 December 1982, relating to the 
conservation and management of straddling fish stocks  and highly migratory fish stocks.  Norway is a 
contracting party of the Northwest Atlantic Fish eries Organization (NAFO), the Northeast Atlantic 
Fisheries Organization (NEAFO), the Southeast A tlantic Fisheries Organization (SEAFO), and the 
Convention for the Conservation of Antarctic Mari ne Living Resources (CCAMLR);  all manage fish 
stocks in their respective convention areas. 
65. At the national level, the Ministry of Fisheries allocates the Norwegian quota on each 
regulated stock between groups of vessels, as group quotas.  Group quotas are then allocated to individual vessels either as individual fixed quotas for each participating vessel or as maximum quotas.  The system of individual vessel quotas provides every participating vessel with a fixed and guaranteed portion of the quota group.  Within the system of maximum quotas, an upper limit is set 
for the annual catch.  As the sum of the allocated  maximum quotas is higher than the group quota (the 
so-called "over-regulation"), the participating vessel s are not guaranteed that they may take their 
quota share.  In addition, time-period quotas, trip quo tas, and days-at-sea are used to regulate certain 
fisheries.  The fishing of a species is closed when the total group quota is exhausted.   
66. The TAC for 2003 was set at about 4 million tonnes (Table IV.12).  Allocations are made 
both to Norwegian and foreign fishermen since most  stocks in Norwegian waters are shared with 
other countries.  In 2003, some 38% of the TAC was allocated to Norwegian fishermen.  Logbook provisions, checkpoints, a satellite-based monitoring  system, and on-shore controls are in place to 
ensure that fishing activities comply with quota allocations. 
Table IV.12 
TAC allocations, 2002 and 2003 
(Tonnes) 
 2002 2003 
Species TAC Allocations 
to national 
fishermen Allocations 
to foreign 
fishermen TAC Allocations 
to national 
fishermen Allocations 
to foreign 
fishermen 
Herring 1,195,000 569,970 625,030 1,192,138 558,700 633,438 
Capelin 1,640,000 499,556 1,140,444 1,185,000 269,682 915,318 
Cod 451,400 203,660 247,740 426,200 199,791 226,409 
Haddock 195,300 72,825 122,475 155,885 63,924 91,961 
Saithe 287,000 208,000 79,000 329,000 234,800 94,200 
Mackerel 568,165 161,246 406,919 484,615 159,556 325,059 
Plaice 77,000 3,890 73,110 73,250 3,969 69,281 
Blue whitinga .. .. .. .. .. .. 
Redfish 95,000 4,596 90,404 119,000 7,836 111,164 
Schrimp 10,150 9,215 935 10,150 9,215 935 
Total 4,519,015 1,732,958 2,786,057 3,975,238 1,507,473 2,467,765 
.. Not available. 
a Due to disagreement regarding the allocation of the blue  whiting stock, the states involved – EU, Norway, Iceland, 
Faeroe Islands, Greenland, and Russia – have not ye t adopted a management regime for this stock. 
Source:  Ministry of Fisheries. 
67. Fishing activities are also controlled through a stringent licensing system, to prevent over-
fishing and the build-up of fleet over-capacity.  Fishi ng vessels must be registered in the Register of 
Norwegian Fishing Vessels:  registration of new fishing vessels, as well as acquisition of a fishing vessel already registered require a permit from the authorities.  At the end of 2002, 7,555  of the 9,934 WT/TPR/S/138 Trade Policy Review 
Page 86 
 
 
registered fishing vessels were in operation.  Norw ay has implemented two basic models to regulate 
the number of vessels that can join the different fish eries:  fishing licences and annual permits.  These 
are connected to both the owner of the vessel and to the fishing vessel itself, and are specific to 
species, fishing areas, fishing gear, and fishing vessel s of a specific size.  In accordance with the 
Participation in Fisheries Act of 26 March 1999, re lating to the regulation of the participation in 
fisheries with annual access permits, a total of 709 fishing licences were granted in 2003 to 380 vessels, as well as 4,402 annual access permits. 
68. Norway has established a quota-transfer system – the unit quota system – with the purpose of 
reducing the number of vessels.  The unit quota system  allows the owner of two vessels to transfer a 
part of the quota of one vessel to another.  The owner will then control more than one quota for a 
period of 13 years if the vessel withdrawn from the fi shing fleet is sold, and for 18 years if the vessel 
is scrapped.  The unit quota system was originally implemented only for the offshore fishing fleet, but 
in 2004, a customized version of the system was al so introduced for the coast al fleet.  Norway also 
uses decommissioning schemes to reduce the fishing fleet (see below).   
69. Whaling and sealing are also regulated by the Par ticipation in Fisheries Act.  In 2003, three 
vessels participated in seal hunting and 33 vessels in  the hunt for mink whales.  All participating 
vessels are required to have inspectors on board to en sure that their hunting activities are performed in 
accordance with regulations. 
70. Sales organizations are responsible for contro lling catches on all vessels landing in their area, 
irrespective of membership in the organization or of nationality.  Under the Act on the marketing of 
raw fish of 24 June 1994, first-hand buyers must re gister with the Directorate of Fisheries.  The 
purpose of the system is to improve the supervision of first-hand sales of fish and fishery products, by 
allowing comprehensive monitoring of different groups of buyers. 
71. Nationality restrictions exist with respect to activities and ownership in the fishing subsector 
(Chapter II(4)).  Fishing activities are also subject  to various management instruments, including 
minimum fish size, minimum mesh size, by-catch rules, discard bans, and limitations on the number 
of days at sea. A general policy goal is to increase th e degree of processing.  In this respect, the share 
of catch used for the production of fish-meal and oil amounted to some 44% in 2003;  the rest of the catch is destined for direct human consumption. 
72. Minimum import prices on certain fish products  may be established if there is market 
disturbance resulting from imports of large quantities of any fish at prices below Norwegian minimum 
prices.  The authorities indicate, however, that no minimum import prices have been imposed since 
Norway's last TPR.  
73. Enterprises in the fishery subsector can receive  support through a number of programmes and 
schemes.
16  Most support programmes are administered by  the Ministry of Fisheries in accordance 
with the yearly agreement between the Government and the Norwegian Fishermen's Association.  
Subsidies paid to the fisheries subsector have con tinued to decrease since No rway's last TPR;  total 
outlays in 2003 amounted to NKr 66.1 million (Table IV.13).  For 2004, the budget provides for outlays of NKr 75.1 million. 
                                                     
 
16 WTO document G/SCM/N/95/NOR, 30 August 2002. Norway WT/TPR/S/138 
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Table IV.13  
Transfers associated with Norway's fishery policies, 1998-03 
(NKr million) 
Type of transfer and purpose 1998 1999 2000 2001 2002 2003 
Transport support  33.0 33.7 32.9 32.4 26.4 42.2 
Interest rate subsidies for fishing vessels fo r domestic deliveries  5.0 3.0 1.6 1.2 0.1 0.0 
Support for the modernization a nd capacity adjustment of the 
fishing fleet;  contract subsidies and decommissioning grant 75.4 81.4 95.7 75.4 20.4 0.0 
Grant for building or purchase of vessels to the County of 
Finnmarka and Nord Troms  0.0 10.0 0.0 0.0 0.0 0.0 
Support to long-line baiting fac ilities 13.0 13.9 11. 7 12.9 12.1 11.3 
Research on fishery 5.0 4.9 5.9 1.7 2.6 4.6 
Decommissioning scheme, vessels less than 15 meters  .. .. .. .. .. 17.0 
.. Not available. 
a Finnmark only in 1998 and 1999.  
Source: WTO documents G/SCM/N/48/NOR, 19 Octobe r 1999;  G/SCM/N/60/NOR, 17 August 2000;  
 G/SCM/N/71/NOR, 25 June 2002;  G/ SCM/N/95/NOR, 17 July 2003;  and (for the year 2003) information 
 provided by the Norwegian authorities.  
74. The Transport Support programme is aimed at facilitating fishery activities in specific 
regions.  Aid is distributed by a group of sales associations.17  Total subsidies under this scheme 
amounted to NKr 42.2 million in 2003, up from NKr 26.4 million in 2002.  The authorities note that 
this increase in support was mostly due to a fall in export prices caused by an appreciation of the 
krone, and to various bankruptcies leading to a re duction of landing facilities.  The fish farming 
industry does not benefit from the scheme.   
75. The programme of Support to the Modernizati on and Capacity Adjustment of the Fishing 
Fleet, once Norway's most important capacity re duction scheme, was abolished in 2003.  The 
authorities indicate that the unit quota system is now  the main instrument for fleet reduction.  The 
Grant for Building or Purchase of Vessels to th e County of Finnmark and Nord-Troms programme 
was abolished in 2001.  It provided grants to buyers in Finnmark of used fishing vessels less than ten 
years old.   
76. The programme of Support to Long-line Baiting Facilities  provides grants to members of 
organized long-line baiting facilities.  Support has been limited in recent years to NKr 11 per 100 baited hooks;  total payments amounted to NKr  11.3 million in 2003.  Support for research in 
fisheries is granted through a programme of research  grants, with total outlays of NKr 4.6 million in 
2003.  The programme of Support to Fishing Vessel s for Domestic Delivery was phased out in 1989, 
though some remaining payments of less than NKr 0.1 million we re left until 2002.  It provided 
interest rate subsidies for ship owners and a cons truction loan subsidy for yards, with a view to 
modernizing the fishing fleet.   
(5) M
INING AND QUARRYING  
77. The structure of Norway's mining and quarrying industry has changed over several decades.  
There has been a strong increase in the production of  industrial minerals, a m oderate growth in the 
production of natural stone, stone chips, sand and gravel, and a sharp reduction in the extraction of 
ore.  The contribution of mining and quarrying h as remained constant at 0.2% of GDP over recent 
years.   
                                                      
17 The associations are:  Norway’s Raw Fish Orga nization;  the Fish Sales Association for Western 
Norway;  the Fish Sales Association for Rogaland County;  the Fish Sales Organization for the Skagerak Coast;  and Norway’s Herring Sales Association. WT/TPR/S/138 Trade Policy Review 
Page 88 
 
 
78. Exports of minerals (excluding petroleum) re ached some US$292.7 million in 2003;  imports 
totalled US$392.3 million.  Imports of mini ng products to Norway are duty free.   
79. The legal basis for mining and quarrying in Norw ay is laid down in the Mining Act of 1972 
and the Industrial Concession Act of 1917;  both cont ain nationality restrictions  on exploration rights  
The restrictions apply to individuals and enterprise s not resident in a EEA country.  Companies from 
outside the EEA are thus obliged to apply for a concession.  The authorities note that no application 
has been rejected in recent years and that compan ies from outside the EEA play an important role in 
this industry.  Concessions for ex ploring and licences for extracting are granted by the Directorate of 
Mining. 
80. The Ministry of Trade and Industry was preparing a new Mining Act, to be submitted to the 
Storting in autumn 2004.  The authorities indicate that the new legislation will be based on the 
principle of national treatment. 
(6) ENERGY  
(i) Hydrocarbon 
(a) Main features 
81. The oil and gas sector is Norway's largest industry in terms of value added, and has been a 
key driving force in Norway's economic developm ent over several decades despite its fluctuating 
share in output.  Activities in the industry include production of equipment related to the petroleum 
industry, as well as refining of pe troleum products.  Norway has two refineries:  Statoil's Mongstad 
facility close to Bergen, and the Esso plant at Slag en, near Oslo.  Their annual capacity totals about 
15.5 million tonnes.  Discovered and undiscovere d resources of oil and gas on the Norwegian 
continental shelf (NCS) are expected to total just over 12.9 billion scm oe.18  Production to date has 
amounted to 3.8 billion scm oe, corresponding to 29%  of total resources.  The Government's Report 
No. 38 to the Storting describes a long-term scenario  for the NCS in which estimates for recoverable 
reserves are presented.  Forecasts indicate that remaining resources on the NCS could permit 
profitable production of oil for 50 years and gas for almost a century.   
82. Norway is the world's third largest exporter of crude oil, behind Saudi Arabia and Russia, and 
the seventh largest producer.  In 2003, Norway's e xports of crude petroleum and natural gas amounted 
to US$29,482 million; in addition, Norway e xported US$12,290 million of refined petroleum 
products.  The share of both product groups in No rway's total commodity exports has ranged between 
43% and 63% in recent years.  Norway accounted fo r about 4% of world o il production in 2003.  
Petroleum production from the Norwegian continental shelf has increased ever y year since operations 
began in 1971;  in 2003, it to talled 262.7 million scm oe.  Oil production declined by 2% in 2003, 
whereas gas sales continued their long-run upwar d trend and rose by 12.1%.  The Government 
expects continued growth of gas sales in the co ming years and considers annual sales of 120 million 
scm oe from 2010 a realistic scenario.  The contribut ion of oil and gas extraction to Norway's GDP 
was 17.4% in 2003, down from 22.3% in 2000 (Table IV.14).  The strong variations of the sector's 
GDP share are caused by oil price variations and, to  a lesser extent, exchange rate fluctuations and 
changes in production.  Due to its capital intensit y, and despite its large contribution to GDP, the 
direct contribution of this activity to total employme nt is relatively small;  in the first quarter of 2004, 
it employed about 30,000 people, or 1.3% of the labour force. 
                                                      
18 One standard cubic meter of oil equivalent (scm oe) is equal to 6.29 barrels of oil. Norway WT/TPR/S/138 
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Table IV.14 
Oil and gas sector, key indicators, 1997-03 
 1997 1998 1999 2000 2001 2002 2003 
Oila (million scm oe) 190.4 182. 1 182.2 194.7 198. 3 193.3 189.4 
Gas (million scm oe) 43.0 44. 2 48.5 49.7 53. 9 65.5 73.4 
Value added (NKr million) 164,564 112,249 157,998 325,078 302,785 .. .. 
Exports (NKr million) 163,674 118, 303 159,227 306,625 295,854 257,331 .. 
Value added (% of GDP) 14.7 9.8 13.3 22.3 20.2 17.1 17.4 
Exports (% of merchandise exports)  53 43 50 63 61 60 .. 
 
.. Not available.  a Includes natural gas liquids/condensate.  
 
Source:  Ministry of Petroleum a nd Energy, Statistics Norway online inform ation:  Available at:  http://www.ssb.no/ 
 english.  
83. Petroleum activities on the NCS are undertaken by commercial companies:  all major 
international oil companies are present.  The two main Norwegian companies are Statoil and Norsk 
Hydro.  Statoil was partially privatized and listed on the Oslo and New York stock exchanges in June 
2001;  18.2% of the shares were sold to private shareholders.  As at May 2004, the State still held 
81.7% of the shares, but the Storting, in its Proposition No.36 (2000/01), has opened the way for a 
further reduction, down to two thirds of the company's value.  
84. The State Petroleum Fund (SPF), established in 1990, is the State's instrument for placing 
revenues from oil and gas production in a broad-based portfolio of international securities.  The Fund 
has two main purposes19:  first, as a buffer to smooth short-te rm fluctuations in oil revenues;  and 
second, as a tool for coping with the financial ch allenges of an ageing population and the expected 
decline in oil revenues, by transferring wealth to future generations.  Transfers to the Fund amounted 
to NKr 104 billion in 2003.  As at 31 Decemb er 2003, the SPF had assets of NKr 847.1 billion, 
equivalent to about 54% of GDP. Apart from its contribution to the SPF, the petroleum sector contributes significantly to public finances. 
(b) Policy developments 
85. The framework for petroleum operations in Norw ay is determined by the Storting, which 
must approve all major development projects (NKr 10 billion or more).  The Storting has delegated 
the authority to the King in Council (i.e. the Govern ment) to approve development projects with an 
estimated cost of less than NKr 10 billion.  Ov erall administrative responsibility for petroleum 
operations on the Norwegian continental shelf rest s with the Ministry of Petroleum and Energy 
(MPE), which must conduct these functions in accordance with the general policy framework 
determined by the Storting.  The MPE has overa ll responsibility for resource management for 
monitoring petroleum, and provides the secretariat for the Petroleum Price Board, which sets the 
reference price for taxation purposes.  It is also in ch arge of handling the State's participation in the oil 
industry, i.e. for exercising the owner’s role in rela tion to Statoil and for supervising the State's direct 
financial interest (SDFI) in the petroleum sector .  Petroleum products enter Norway tariff free. 
86. The SDFI was established in 1985 and is managed by Petoro AS on behalf of the State.  
Under the SDFI, a state interest was incorporated into  most licences issued after 1985;  as a result, the 
State pays a share of all exploration, developmen t, and operation costs in activities corresponding to 
its direct interest.  Consequently, it receives a corresponding share of production and other revenues 
on the same terms as other licensees.  As owner of petroleum resources, the State is free to determine 
                                                     
 
19 Ministry of Finance (2003). WT/TPR/S/138 Trade Policy Review 
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its level of direct participation, through the SD FI, in any licence.  However, the level of SDFI 
participation has decreased since th e thirteenth licensing round in 1991.  As at January 2004, the SDFI 
held interests in 86 production licences and 13 joint- ventures for pipelines and land-based plants.  Net 
cash flow from the SDFI totalled NKr 67.5 billion in 2003.  The average level of SDFI involvement 
has continued to decrease in recent years;   its  investments amounted to NKr 16.5 billion in 2003, 
down from NKr 32.8 billion in 1999.  The authorities indicate that the Norwegian State will continue to take SDFI in future licensing rounds on a case-by-case basis. 
87. The Petroleum Act (Act No.72 of 29 November 1996) provides the overall legal basis for the 
licensing system, which regulates petroleum operations  in Norway.  Regulations under the Act were 
issued by Royal Decree of 27 June 1997.  The Act and its regulations authorize the grant of permits 
and licences to explore for, produce, and transpor t petroleum.  The legal authority to tax these 
operations is granted by the Petroleum Taxation Ac t (Act No. 35 of 13 June 1975 relating to taxation 
of sub-sea petroleum deposits). 
88. As established by the Petroleum Act, property rights over Norway's oil and gas resources are 
vested in the State.  Exploration and production licences are issued under the terms stipulated in the 
Act and can be granted to physical persons domic iled in EEA member states.  Production licences are 
awarded through licensing rounds, during which the G overnment invites applications for a certain 
number of blocks.  Companies may apply individually or in groups.  The eighteenth licensing round was announced in December 2003 and represents a sizeab le increase in availabl e acreage, making this 
the largest round since the first in 1965.  The SDFI participates in five of the 16 production licences 
awarded. 
89. Currently, some 34 oil companies carry out oper ations on the NCS.  All commercial activities 
on the NCS must be preceded by the formal ope ning of the area in question for reconnaissance, 
exploration, development, and prod uction.  Opening takes place after the authorities have ensured that 
the environmental, economic, and social impact of these activities has been properly assessed.  Non-
exclusive reconnaissance licences are required for geological, petro-physical, geo-physical, geo-
chemical, and geo-technical surveys.  Production licences are required for regular exploration, 
drilling, and production.  Production licences give oil companies the exclusive right to explore for, 
develop, and produce petroleum found in the specified  area.  The licensees become the owners of any 
petroleum produced.  Before development and deco mmissioning, licensees are required to carry out a 
thorough assessment of the environmental, economic a nd social impact of their activities.  Eligibility 
criteria for licences include technical expertise, fi nancial capacity, and experience in the respective 
activity. 
90. In connection with the partial privatization of Statoil, the Storting, in its Proposition 
No. 36 (2000/01), resolved to create a separate compa ny for the transport of natural gas.  Gassco AS 
was established in May 2001 as a fully state-owned company and, since January 2002, has operated 
all leading pipelines for landing gas, and the most important land-based facilities.  The Government 
also abolished the Gas Negotiati ng Committee (which mark eted gas exports) as of 1 January 2002.  
The companies on the NCS were thus given freedom to act commercially, and are responsible for marketing their own gas.  New provisions and tariffs for use of gas pipelines, and related installations 
for transportation of gas on and from the NCS were  laid down with effect from 1 January 2003.  The 
authorities state that Gassco, in operating this infrast ructure, acted neutrally towards all users of the 
gas transport system.  The EU Gas Directive (98/ 30/EC) was implemented in Norwegian legislation 
with effect from 1 August 2002.   
91. Petroleum operations, both in-land and offshore, ar e taxed at the ordinary corporation rate of 
28%.  In addition, a net profit tax of 50% is levi ed on petroleum activities.  Further taxes and fees Norway WT/TPR/S/138 
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levied on petroleum operations are the royalty on oi l production, the area fee, and the carbon dioxide 
tax.  Royalties are paid on oil production from fi elds approved for devel opment before 1 January 
1986, and as at January 2004, are paid for only two fields;  royalty payments will be phased out by 
2005 as they are no longer considered an adequate instrument for securing the State's interest.  Area 
fees must be paid on all production licences after the exploration period has expired;  the annual fee 
for 2004 is NKr 7,000 per square kilometre.  Government revenues from taxes and royalties on 
petroleum operations amounted to an  estimated NKr 102.9 billion in 2003. 
92. Laying the basis for a competitive and viable petroleum-related industry is an important 
policy objective of the Norwegian Government.  The petroleum industry has important spillover 
effects on other industries, by generating a strong demand for goods and services related to 
exploration, drilling, developmen t, and petroleum production.  With a view to promoting the 
internationalization of Norway's petroleum-rela ted industry and increasing its competitiveness, the 
MPE established the Intsok foundation in 1997.  With more than 100 members, Intsok aims to achieve 
its competitiveness target through a network of volun tary collaboration;  th is will help boost annual 
international sales of Norway's petroleum-related supplies industry from the current level of about 
NKr 35 billion to NKr 80 billion by 2010.   
(ii) Electricity 
93. Norway is the largest producer of hydropower in Europe;  about 99% of electricity generation 
is hydro-electric.  Norway has 786 power plants w ith a total installed capacity of 28.3 GW.  Between 
90 and 150 billion kw hours are produced annually, de pending on precipitation.  In 2003, exports of 
electrical energy totalled US$223 million, while imports amounted to US$553 million.  Imports of 
electrical energy are duty-free. 
94. Norway's legal framework for the generation and transmission of electricity is laid down in 
the Energy Act of 1990, the Water Resources Act of  1 January 2001, and the Industrial Concessions 
Act of 1917.  The legal framework provides for na tional treatment of foreign actors throughout the 
entire sector.  Investments are regulated through a system of concessions, but the authorities note that 
requirements are of a general nature and do not di scriminate according to nation of origin.  Full 
market access is provided in the form of rights fo r any third party to use the net, and to establish 
trading companies, subject to standard requirements, such as on equity.   
95. The Norwegian Water Resources and Energy Department is the regulatory body for the 
electricity sector.  It grants trading licences for electrical power and has established guidelines for 
transmission tariffs.  State ownership in the sector  remains high, totalling around 80%.  Statkraft, a 
state-owned company, is the largest electricity pr oducer, generating just under one third of Norway's 
electrical energy.  Following the acquisition of va rious regional utility companies, Statkraft was 
ordered by the Competition Authority in 2003 to di vest itself of some production capacity, for reason 
of dominant market position.  Statnett SF, a state- owned enterprise, is responsible for operating the 
national electricity grid.  The spot market is mana ged by Nordpool Spot, which is jointly owned by 
the Nordic transmission system operators. 
96. Norwegian legislation establishes that private No rwegian or foreign companies are obliged to 
return any rights and assets for hydr opower generation to the state after 60 years.  With a view to 
harmonizing hydropower generation conditions for public and privat e enterprises, the Government 
has established a committee, which is assessing vari ous policy alternatives a nd will submit its report 
in autumn 2004. WT/TPR/S/138 Trade Policy Review 
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97. Electricity consumption is subject to a specific tax of NKr 0.065 per kw hour.  Industrial 
enterprises and enterprises in the northern counties of Troms and Finnmark pay a reduced rate of 
NKr 0.0045.  Energy-intensive industrial processes, such as electrolysis, are exempt from the tax.  
Consumers in the counties of northern Troms an d Finnmark are exempt from this tax, as are 
enterprises of the manufacturing, mining, and quarrying industries.   
98. In December 2003, the Ministry of Petroleu m and Energy presented a White Paper to the 
Storting on security of electricity supply.  The Pa per presents the experience of electricity shortages 
during the winter of 2002-03, and announces a strategy for a more secure energy supply in Norway.  Proposed actions to improve power supply include increased efforts to stimulate environmentally 
friendly energy production, including the promotion of wind power. 
(7) M
ANUFACTURING  
(i) Main features and policy framework 
99. Manufacturing activities contributed 9.0% to real GDP in 2003, down from 9.7% in 2000.  
Employment in the manufacturing sector has decreased  considerably since Norway's last TPR, from 
309,000 in 2000 to 263,000 in the first quarter of 2004.  In 2003, Norway exported manufactured 
products (excluding processed food) for US$30,3 04 million; imports were US$34,601 million.  
Norway's manufacturing sector comprises a broad vari ety of activities, some of which (e.g. production 
of oil platforms, fishing gear and metal goods) ar e closely related to Norway's natural resource 
endowments. 
100. In contrast to agriculture, imports of industrial products are subject to relatively low tariffs.  
The average applied MFN tariff in manufacturing (Major division 3 of ISIC, Rev.2) is 6.1%, and 
0.9% on overall non-agricultural products (WTO defi nition).  A large number of product categories 
are duty free;  the highest tariffs apply to processed agricultural products (food in particular), and to 
certain textile products (Chapter III(2)(iii)(a)).  The structure of the tariff, with negative escalation from first to second stage of processing, explains th e need for support to manufacturing of agricultural 
products and for export subsidies to processed ag ricultural products.  Through the EEA Agreement, 
the Norwegian manufacturing sector is fully integrat ed into the common Euro pean internal market. 
101. Norway's manufacturing policy is mainly sector-generic;  only in a few cases is it directed 
towards individual companies and industries.  Support for the manufacturing sector is directed towards small and medium-sized enterprises, re gional objectives, and research and development 
(Chapter III(4)(i)).  According to the authorities, support is intended to ease readjustment processes, 
and to assist companies in becoming competitive by  stimulating innovation a nd development through 
partial compensation for extra costs and risks associated with such activities. 
102. Manufacturing policy formulation falls mainly within the responsibilities of the Ministry of 
Trade and Industry, but depending on the industrial sector, other ministries are also involved.  In 
2003, the Government launched a plan for a comprehe nsive innovation policy.  As a key element, the 
Government has set up an Innovation Forum in which representatives from the business community, 
employers' associations, labour unions, and public research bodies participate.  Another element of 
manufacturing policy is the financing of research projects.  The Research Council of Norway, the 
most important official body in this area, admini sters and finances research activities in business and 
industry, institutes and universities (Chapter III(4)(i)).  An advisory system, consisting of five different advisory bodies, plays a major role in disseminating knowledge among users in business and 
industry.  The provision of credit to small and me dium-sized enterprises, mainly through Innovation 
Norway, is another important element of Norway's manufacturing policy.   Norway WT/TPR/S/138 
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103. Two anti-dumping investigations were initiated against Norwegian exports of manufactured 
products since Norway's last TPR:  by Canada in  2000, on pulp dewatering screw presses;  and by 
Australia in 2001, on polyvinyl chloride homopolymer resin.  However, neither of these led to the 
imposition of anti-dumping measures. 
(ii) Selected manufacturing activities 
(a) Machinery and transport equipment 
104. Machinery and transport equipment manufacturing is the single most important activity in the 
sector, accounting for 2.2% of GDP in 2003.  Prod uction of machinery and transport equipment in 
Norway is closely linked to the petroleum and shipbuilding industries and includes production of 
engines and turbines, motors for ships and boats , agricultural machines, electrical machines, and 
communication equipment.  Imports of machinery a nd transport equipment enter duty-free.  In 2003, 
Norway exported machinery and equipment (exc luding ships) for US$6,877 million.  Imports 
(excluding ships) amounted to US$17,254 million in the same year.   
(b) Shipbuilding and oil platforms 
105. The building and repair of ships, oil platfo rms and modules accounted for 1.0% of GDP in 
2003.  There are just under 50 yards that build or are capable of building ships of over 100 gross tonnes in Norway. These yards, mostly  located in the west of Norway, mainly build small or medium-
sized specialized ships, such as product and chemic al tankers and high-speed passenger ferries.  Ships 
and oil platforms are imported duty-free.  In  2003, Norway's ship exports amounted to 
US$1,251 million, and imports  were US$1,160 million. 
106. Until December 2003, assistance to the shipbuilding industry was available through the 
contract-related operating aid programme (Chapter III(4 )(i)).  Under this scheme, grants of up to 9% 
of the contract value were paid to shipbuilders fo r new ships worth more than € 10 million, and up to 
4.5% for new ships of a value less than € 10 m illion and for conversions.  Outlays under this scheme 
amounted to NKr 1,149.8 million in 2002.  Since 2 003, a temporary contract-related operating aid 
scheme has been in place, providing grants of 6% of the contract value for new container ships, 
product and chemical tankers, and L NG carriers (Chapter III(4)(i)(g)).   
(c) Metals and metal products 
107. Norway is a major producer and exporter of al uminium and ferro-alloys, but it also produces 
iron and steel, magnesium, nickel, and zinc.  The me tals industry consists mainly of a few large 
companies, most of which are located in regional Norway.  It is one of Norway’s largest export 
industries;  in 2003, exports of Norway's basi c metal industries amounted to US$4,945 million;  
imports totalled US$2,783 million.  Imports of metals and metal products enter Norway duty-free. 
(d) Textiles and clothing 
108. The Norwegian textiles and clothing industry contributes just about 0.1% to GDP and 
employs some 5,000 people.  Production is centred in small and medium-sized enterprises.  It is one 
of the few manufacturing industries where imports still face tariffs:  textiles and clothing face an average tariff of 9.8% (HS chapter 61) and 11.8% (HS chapter 62), with tariffs ranging from zero to 
13.7%.  However, under most of Norway's preferen tial agreements, imports of textiles and clothing 
are not subject to tariffs.  Imports totalled US$2,522 million in 2003, exports amounted to just under 
US$296 million.  The authorities indicate that 37% of  textile imports and 50 % of clothing imports WT/TPR/S/138 Trade Policy Review 
Page 94 
 
 
normally subject to tariffs under MFN rates re ceived duty-free treatment under Norway's GSP 
scheme. 
109. Norway does not have quotas on textiles and clothing;  it eliminated quotas on imports of 
fishing nets effective 1 January 2001.  
(8) SERVICES  
(i) Overview 
110. Services have a crucial role in  the Norwegian economy and have  further increased their share 
in GDP.   In 2003, services accounted for 56.4% of GDP, up from 50.5% in 2000.  Norway has traditionally run a surplus in trade in services;  in 2003, it exported services for NKr 154.2 billion and 
imported services for NKr 138.5 billion.
20 
111. The main service activities in terms of value a dded are business services, wholesale and retail 
trade, health and social work, and transportation (T able IV.1).  In terms of employment, health and 
social work constitute the most important subsector , employing about 20.4% of Norway's labour force 
in the first quarter of 2004, followed by wholesale and retail trade (14.7%), business services (10.0%) 
and education (7.9%).  Since Norway's last TPR, em ployment has expanded in health and social work, 
business services, and education, but has contract ed in public administration and transport. 
112. Norway liberalized its immigration policy in 2002 in order to attract highly skilled workers 
from outside the EEA.  Since then, about 2,850 work  permits for skilled workers have been issued.  
Their main areas of activity are health car e, construction, and various crafts.  
113. Norway's Schedule of Specific Commitments under the GATS includes commitments in all 
categories except health-related and social services.   A wide variety of subsectors are covered in, inter 
alia, business services, telecommunications, construction and related engineering services, financial 
services, tourism and related services (Table AIV. 1).  Norway has bound, with a few limitations, 
measures affecting cross-border supply, consump tion abroad, and commercial presence for the supply 
of these services.  As regards the presence of natural persons, policy measures remain unbound, 
except as provided in the horizontal commitments for mainly intracorporate transferees, and for a few 
specified service suppliers. 
114. Norway's horizontal commitments under the GA TS relate to provisions on the establishment 
and general authorization procedures for acquisiti ons, such as the requirement of a concession to 
acquire real estate, or to enter into certain lease c ontracts, for corporations where more than one third 
of the voting rights are controlled by non-nationals or foreign controlled companies, or where the chairman and the majority of the board members are not Norwegian.  In the case of individuals, the 
Schedule establishes that foreign citizens residing in Norway are allowed to purchase or lease real 
estate without a concession, provided that the pr operty is acquired for their own personal use. 
115. National treatment is accorded only to subsidia ries of companies formed in accordance with 
the law of an EEA member state and with their regi stered office, central administration or principal 
place of business within an EEA member state;  No rway's commitments do not extend this treatment 
to branches or agencies established in an EEA member state by a third-country company.  Moreover, 
treatment less favourable than that accorded to na tional enterprises may be given to subsidiaries of 
third-country companies, that one formed in acco rdance with the law of an EEA member state but 
                                                     
 
20 Data on trade in services are based on informa tion provided by Statistics Norway, unless otherwise 
indicated. Norway WT/TPR/S/138 
 Page 95 
 
 
have only their registered office in the territory of an EEA member state, unless they show that they 
possess an effective and continuous link with the economy of an EEA member state.  Other limitations to establishment include the requirement  that the managing director in a joint stock 
company, and at least half of the founders, member s of the board of directors, corporate assembly, 
and committee of representatives must be permanent r esidents of Norway and have resided there for 
the last two years.  National treatment limitations also apply to the granting of subsidies, for which 
eligibility may be limited to juridical persons estab lished in Norway, and to natural persons who are 
Norwegian citizens.  
116. Norway's MFN exemptions include measures co vering all subsectors (aimed at promoting 
Nordic cooperation), and specific service activities,  notably road and air transport services and audio-
visual services (Table IV.15). 
Table IV.15 
Overview of  Norway's GATS MFN exemptions  
Sector or subsector Description of measure inconsistent with the MFN 
requirements of GATS Article II Countries to which the 
measure applies Rationale 
All sectors Measures aimed at promoting Nordic cooperation, such as: 
-  guarantees and loans to investment projects and exports (the 
Nordic Investment Bank); -  financial support to R&D projects (the Nordic Industrial Fund); 
-  funding of feasibility studies for international projects (the 
Nordic Fund for Project Exports); -  financial assistance to companies
a utilizing environmental 
technology  (the Nordic Environment Finance Cooperation) Denmark, Finland, 
Iceland, Norway and 
Sweden To maintain and 
develop Nordic 
cooperation. 
Road transport: 
passenger and freight Provisions of existing and future road transport agreements to 
reserve traffic rights for carriage to/from Norway and between 
third countries concerned. Road cabotage can also be allowed for 
specific countries All countries Regional specificity 
of road transport 
services 
Audio-visual services: transmission of audio-visual 
programmes to the 
public Measures taken for the implementation of, and in conformity with, 
regulations such as the EC Television Broadcasting Directive (No. 89/552) and which define programmes of European origin in 
order to extend national treatment to audio-visual programmes 
meeting specific origin criteria Parties to the Council of 
Europe Convention on Transfrontier 
Television or other 
European countries with which an 
agreement may be 
concluded The promotion of 
cultural identity within the 
broadcasting sector in 
Europe, as well as achievement of 
certain linguistic 
policy objectives 
Audio-visual services: motion 
picture and video 
tape production and distribution services Measures taken to confer national treatment on audio-visual works 
through government-to-government framework agreements on 
film co-production. Such works may in some cases receive access 
to funding when this would not otherwise be available to co-production All countries (existing 
agreement with the 
United Kingdom) Promotion of cultural 
links between the 
countries concerned 
Audio-visual services: production 
and distribution of cinematographic works and television 
programmes in 
Nordic countries Measures adopted for the implementation of benefits in 
conformity with such support programmes as the Nordic Film and 
TV Fund in order to enhance production and distribution of audio-visual works produced in Nordic countries Denmark, Finland, 
Iceland, Norway and 
Sweden Preservation and 
promotion of the 
regional identity of the countries concerned 
Audio-visual services: production 
and distribution of 
cinematographic works and television programmes  Measures adopted for the implementation of benefits in 
conformity with such support programmes as Media and 
Eurimages to audiovisual programmes and suppliers to these 
programmes, meeting specific European origin criteria European countries Preservation and 
promotion of the 
regional identity of 
the countries concerned 
Computerized Reservation System (CRS) and sales and 
marketing of air 
transport services The obligations of CRS system vendors or of parent and 
participating air carriers must not apply where equivalent treatment is not accorded in the country of origin of the parent 
carrier or of the system vendor All countries where a 
CRS system vendor or a parent air carrier is 
located Multilaterally agreed 
rules for the operation of CRS 
considered 
insufficient 
a Applies to eastern European companies that are cooperating with one or more Nordic companies. 
Source : WTO document GATS/EL/66, 15 April 1994. WT/TPR/S/138 Trade Policy Review 
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117. Norway's initial offer to the services negotiations  provides for an expansion of its schedule of 
horizontal as well as sector-specific commitments.21  Further commitments on national treatment are 
offered in particular for various distribution, envi ronmental, maritime transport, and energy-related 
services, as well as for telecommuni cations and financial se rvices.  Most of these commitments have 
already been implemented at the EEA level.  Ac cording to the authorities, the implementation of 
Norway's initial offer would not require any legislative changes. 
(ii) Financial services  
(a) Introduction 
118. Financial services contributed some 3.2% to GDP  in 2003 and employed some 2.1% of the 
labour force.  In 2003, Norway exported fina ncial services for NKr 8.3 billion;  imports were 
NKr 5.0 billion.  As at December 2003, there we re 22 commercial banks, 129  savings banks, 13 life 
insurance companies, 46 non-life insurance compani es, and 39 financing undertakings in Norway.  
Assets totalled some NKr 2,871 billi on, mostly held by banks, but increasingly by pension schemes, 
mutual funds, and insurance companies.  Norway's financial market is dominated by four financial 
groups (DnB NOR, Nordea, Sparebank 1, and St orebrand), which account for about 64% of the 
market.  In 2003, two of the major financial gr oups, DnB and Gjensidige NOR, merged to form a 
financial group with a share of 35% of the Norwegia n financial sector.  Foreign participation in the 
banking and financing markets is high compared to the other Nordic countries, and has continued to increase over the last few years.  For example,  from 1998 to 2003, the combined market share of 
foreign-owned subsidiaries and branches grew from 5.1% to 27.4% in banking, and from 15.1% to 
38.7% in non-life insurance.   These increases were mainly due to changes in ownership. 
119. The Financial Supervisory Authority of Norw ay (Kredittilsynet) is responsible for the 
supervision of banking, finan ce, and insurance institutions, including compliance with capital 
adequacy and prudential requirements.  It is also responsible for the supervision of estate agencies and 
debt collection agencies, investment firms and management companies for collective investment 
funds, and of auditors and accountants. 
120. The legislation applicable to the financial sect or, including commercial banks, other financial 
institutions, and the securities market , is contained in several laws.
22 A 10% ownership limit in 
Norwegian financial institutions was replaced in 20 03 by a fit and proper test of owners exceeding 
certain ownership thresholds, both on financia l stability and competition grounds.  Permission is 
required from Kredittilsynet for ownership exceeding the thresholds of 10%, 20%, 25%, 33%, and 
50%.  The rules do not restrict the formation of financial groups, either wi th national or foreign 
owners or participation of fore ign financial institutions in th e groups.  Prudential regulations, 
including fit and proper testing, apply on the b asis of national treatment.  Functional nationality 
restrictions apply to all banks;  in the case of commerc ial banks, at least half of the board of directors, 
and the corporate assembly, must be nationals and permanent residents of an EEA member state. 
                                                      
21 WTO document TN/S/O/NOR, 7 April 2003. 
 22 Act No. 2 of 24 May 1961, relating to Commercial Banks;  Act No. 1 of 24 May 1961, relating to 
Savings Banks;  Act No. 40 of 10 June 1988, relating to Financing Activities and Financial Institutions;  
Act No. 46 of  25 June 1999 relating to Financial Contracts;  Act No. 52 of 12 June 1981 relating to Securities 
Funds;  Act No. 80 of 17 November 2000 relating to Securities Exchanges;  Act No. 95 of 1999 relating to Payment Systems;  Act No. 64 of 5 July 2002 relating to Securities Registration;  Act No. 79 of 19 June 1997 
relating to Securities Trading;  Act No. 39 of 10 June 1988 relating to Insurance Activities;  Act No. 69 of 
16 June 1989 relating to Insurance Contracts;  Act No. 1 of 7 December 1956 on Supervision of Credit Institutions, Insurance Companies, Securities Trading, etc.;  and Act No. 46 of 28 June 1996. Norway WT/TPR/S/138 
 Page 97 
 
 
(b) Banking 
121. There are 22 commercial banks operating in Norway  (after the merger of Den Norske Bank 
with Gjensidige NOR), of which twelve are Norw egian-owned banks, two are subsidiaries of foreign 
banks, and eight are branches of foreign banks (as at June 2004).  There are also 129 savings banks.  
Commercial and savings banks combined held more than  half of the assets of the financial system in 
2003.  In addition, there are three state-owned banks :  the Housing Bank, the Educational Loan Fund, 
and Innovation Norway.  The state banks are finan ced through loans from the State and, in certain 
cases, direct transfers from the public  budget.  Thei r loans are policy tools dir ected at areas such as 
support for research, students, and first-time buyers in the housing market.   
122. The Government Bank Investment Fund (GBIF), through which the State retains a 34% stake 
in DnB NOR, was scheduled to be wound up in 2004;  the State's stake was transferred to the Ministry 
of Trade and Industry on 30 March 2004.  DnB NOR is the last of the State's holdings in one of Norway's major financial groups.  According to the au thorities, there are no plans to divest this stake 
in the near future. 
123. The Ministry of Finance is in charge of granting licences to engage in banking activities, and 
issuing regulations pursuant to the main acts deali ng with financial services.  The payment system is 
monitored by the Central Bank.  The Financial Supe rvisory Authority (Kredittilsynet) is responsible 
for the supervision of banks, finance companies, mortgage companies, and insurance companies, as 
well as activities such as securities trading, r eal estate agencies, and accounting and auditing 
undertakings.  Kredittilsynet also supervises two gua rantee funds, one for commercial banks and the 
other for savings banks;  banks pay premiums to the guarantee funds based on a combination of total 
deposits.
23  Kredittilsysnet reports administratively to the Ministry of Finance;  it is authorized to issue 
rules and regulations in a number of areas, and it prepares draft statutes and regulations for the Ministry of Finance.   
124. Norwegian financial institutions require an  authorization from Kredittilsynet when 
establishing a subsidiary or branch outside the EEA.  Cross-border supply of financial services by 
Norwegian financial institutions is not regulated by Norwegian law, apart from certain requirements 
within the EEA under the European passport.  In line with EEA rules, the minimum capital 
requirement is € 8 million regardless of nationality.  
125. Under the EEA Agreement, Norway's banking sy stem is a part of the single market for 
banking services.  EEA banks and ot her providers of services may not be discriminated against on 
grounds of nationality.  Establishment licences grante d in any member state are valid in the others.  
As a result of its participation in  the EEA, Norway has adopted the acquis communautaire  in banking 
services regulations, with the exception of regulations  dealing with relations with third countries. 
126. Capital adequacy rules follow the Bank of In ternational Settlements guidelines.  Foreign, non-
EEA-based service suppliers must obtain permi ssion from Kredittilsynet to establish branches of 
banks, financing undertakings, secur ities brokerage firms, and management companies for collective 
investment funds, in accordance with the Norwegia n legislation regulating financial institutions, as 
amended by Act No. 46 of 28 June 1996 on establis hment in Norway of providers of financial 
services suppliers situated outside the EEA.  To obtain such permission the supplier must have permission to provide equivalent services in its ho me state and be subject to prudential supervision 
                                                     
 
23 In June 2004, the Storting decided to combine the two funds. WT/TPR/S/138 Trade Policy Review 
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there.24  In addition, the home supervisory authority must have established satisfactory cooperation 
with Kredittilsynet. 
(c) Insurance 
127. There are 13 life insurance companies and 46 non-life insurance companies operating in 
Norway.  In addition, there are around 250 private a nd municipal pension funds.   Pension funds must 
be fully funded;  they enjoy preferential tax treat ment as neither the payments nor the proceeds are 
taxed before money is withdrawn from the fund. Premiums for pension funds are determined in 
accordance with calculation bases approved by Kredittilsyne t;  other premiums are determined freely.   
128. Insurance companies operating in Norway require a licence from Kredittilsynet;  however, 
this does not apply to foreign companies suppl ying non-life insurance covering large commercial 
risks, notably maritime, energy, and aviation insuran ce.  Insurance firms incorporated in Norway must 
be organized as joint-stock companies or mutual insurance companies;  insurance brokerage firms 
must be organized as joint-stock companies.  The ma nager, at least half the members of the board of 
directors, and half the members of the corporate assembly of an insurance company or subsidiary, 
must be permanent residents of Norway.  This re quirement does not apply to EEA citizens residing in 
an EEA State.  All insurance companies are subject  to a separation requirement between life, non-life, 
and credit-risk insurance.  Capital requirements fo r insurance companies are the same as for banks.  
Increases of capital must be approved by Kredittilsynet.  
129. The Norwegian insurance market is generally open for commercial presence of foreign 
insurance services providers.  Foreign insurance co mpanies may establish subsidiaries or branches in 
Norway without any limitation.  For non-EEA insu rance companies, the same establishment rules as 
in the banking sector apply.  As is the case for branches of banks, non-EEA-based insurance suppliers 
must obtain permission from Kredittilsynet.  Permissi on is subject to the provision of equivalent 
services in the home country;  in addition, the ho me supervisory authoritiy must have established 
satisfactory cooperation with Kredittilsynet.25   
130. Cross-border supply of insurance services is limited for non-EEA insurance companies, 
reflected in the WTO Understanding on Commitments in Financial Services.  Cross-border direct 
insurance services by non-EEA insu rance companies must be supplie d through an insurance broker 
authorized in Norway.  Cross-border supply of insurance services is unlimited for EEA insurance 
companies.  Non-EEA insurance companies supppl ying insurance required by Norwegian law, e.g. 
compulsory motor-vehicle insurance, must  be licensed and established in Norway.  
131. Foreign insurance brokers granted permission to  provide services in Norway through a branch 
must lodge a guarantee with Kredittilsynet, executed by a financial institution located in an EEA 
State.26 
(d) Securities and capital markets 
132. As at end 2002, the Norwegian securities market  comprised 92 investment firms, 24 securities 
funds, and two clearing houses.  The monopoly for securities registration in Norway was lifted in 
2003 by Act No. 64 of 5 July 2002 and replaced by prudential regulation of securities registries, including a licence requirement, supervision by  Kredittilsynet, and a general 10% ownership 
limitation.  The regulation is based on the principle of national treatment.  There are limitations on the 
                                                     
 
24 WTO document S/C/N/64, 23 June 1997.   
25 WTO document S/C/N/64, 23 June 1997. 
26 WTO document S/C/N/64, 23 June 1997. Norway WT/TPR/S/138 
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cross-border supply of registration services as securiti es enterprises must be organized as a Norwegian 
public limited company.  According to the Stock Exchange Act of 31 March 2001, Kredittilsynet also 
has responsibility for supervision of stock excha nges and authorized market places, including Oslo 
Stock Exchange.  
133. Until 2001, securities exchanges in Norway had to be Norwegian self-owned entities, and the 
members of the governing body of the exchange were appointed by the Ministry of Finance.  From 2001, Norwegian securities exchanges must be formed as a Norwegian public limited liability 
companies.  This allows for private Norwegian and foreign ownership of the exchanges within a 
general 10% ownership limitation.  Foreign or Norwegian ownership up to 25% is possible within 
joint ventures.  Prudential regulations include a licence requirement, supervision by Kredittilsynet and 
capital requirements. 
(iii) Telecommunication and postal services 
(a) Overview 
134. Telecommunication and postal services together contribute about 1.5% to Norway's GDP.  
They are supervised by the Norwegian Post and Telecommunications Authority (NPTA), an 
autonomous agency under the Ministry for Trans port and Communications.  The NPTA's activities 
are financed mainly through licence and spectrum fees.  Since its last TPR, Norway has further 
liberalized communication services by partially priv atizing the main provider of telecommunication 
services, Telenor, and by reducing the scope of services provided exclusively by Norway Post.  It has also introduced legislation on e-commerce. 
(b) Telecommunication 
135. Norway's telecommunication mark et has been characterized by the continued strong growth 
of mobile subscriptions in recent years (Table IV.16). ISDN subscriptions grew strongly until 2002, 
but fell in 2003 due to increasing mobile subscriptions. 
Table IV.16 
Telecommunications basic indicators, 1997-03 
Telephone traffica 
 Operating 
receipts Domestic  To foreign 
countries  Telephone 
connections Mobile 
subscriptions ISDN 
subscriptions
 (NKr million) (Thousands minutes)    
1997  25,518 15,362,577 507,885 2,484,173 1,676,763 149,954 
1998  28,380 18,715,312 549,739 2,474,964 2,106,414 309,960 
1999  34,773 22,899,769 637,949 2,475,490 2,744,793 532,077 
2000 42,094 27,108,609 672,137 2,445,734 3,367,763 703,843 
2001 40,948 28,988,252 767,132 2,386,446 3,689,246 768,808 
2002 41,631 27,911,733 745,477 2,316,770 3,840,377 810,913 
2003 .. .. .. 2,228,565 4,100,000b 784,886 
.. Not available. 
a Mobile and fixed line traffic. 
b Approximate.  
Source: Statistics Norway, Statistical Yearbook of Norway 2003 ;  and NPTA (2003), The Norwegian Telecom Market 2002 
 [Online].  Available at:  http://www. npt.no/pt_internet/eng/publ ications/telecom _statistics/stati stikk2002/engelsk/ 
 index.html. 
136. The Electronic Communications Act, adopted on 4 July 2003, replaced the 
Telecommunications Act of 23 June 1995.  The ne w Act, which implements the EU's regulatory WT/TPR/S/138 Trade Policy Review 
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framework for electronic communication networks and services, covers all telecommunications 
activities, including radio communications, and management of the electromagnetic frequency 
spectrum, but it does not apply to radio broadcasting and television programmes.  The King in Council (i.e. the Government), the Ministry of  Transport and Communications, and the NPTA 
constitute the Authority under the Act.  As estab lished by the Electronic Communications Act, the 
Authority may issue regulations on the duty to regist er for a provider of an electronic communications 
service.  Operators are obliged to register elect ronic communication networks with the Authority. 
137. Telecommunications operators are generally free to  set their own end-user rates, and approval 
is not required.  Any provider of access to elec tronic communication networks and services has the 
right and obligation to negotiate with other provid ers on interconnection for the provision of public 
electronic communication services.  However, th e Authority may impose access and interconnection 
pricing obligations on a provider with significant ma rket power where the Authority considers that 
denial of access or unreasonable terms and conditi ons with a similar effect would hinder the 
emergence of a sustainable competitive market at the retail level, or would not be in the end-users' 
interest.  The regulatory framework also allows controls of retail services, e.g. price caps, of an 
undertaking identified as having significant market power .  However, this is a last resort measure in 
case the Authority concludes that measures at the wholesale level would not promote competition 
effectively.  The Authority may also impose sp ecific reporting obligati ons, including financial 
information and technical specifications, and the u se of specific systems for running cost accounts.  
Price guidelines have not yet been established by the NPTA.   
138. The Authority may enter into contract with or  nominate one or more providers of universal 
services. Universal service obligations include access to public telephone services and digital electronic communications networks throughout  the country, public pay telephones, number 
information services, telephone directories, and special services for the handicapped and other end-
users with special needs.  The Authority may im pose detailed requirements regarding the content of 
the obligations, inter alia , on prices to end-users, geographic unit prices, quality requirements for the 
services, and monitoring of quality and information.  
139. Approval is required for all telecommunications  equipment intended for connection to public 
telecommunications networks.  New regulations on  the registration and requirements for the import 
and sale of radio and telecommunications terminal equipment were issued by the NPTA on 15 March 
2001. Equipment is considered approved if it fu lfils domestic approval procedures or requirements 
resulting from the EEA Agreement.  Equipment dealer s must be registered.  The NPTA is also in 
charge of issuing technical regulations related to telecommunications.  Its laboratory services section, 
Comlab, is the notified body for telecommunicati ons.  Comlab  tests and certifies radio and 
telecommunications equipment for EU and Norwegia n technical approval, and contributes technical 
measures to the NPTA's mark et surveillance activities. 
140. Norway's principal telecommunications operator,  Telenor, was partially privatized in 2000, 
but the Norwegian Government still holds 50.1% of  the shares (as at May 2004).  Telenor does not 
have any specific privileges.  
141. The Electronic Signatures Act of 15 June 2001  also regulates commercial operations in 
Norway through the use of the internet.  In partic ular, it lays down requirements for secure signature 
creation devices and provides the same legal recogn ition and protection to electronic contracts as to 
traditional contracts.  Norway WT/TPR/S/138 
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(c) Postal services 
142. The regulatory framework for the provision of postal services is contained in Act No. 73 of 
29 November 1996 relating to the provision of universal  postal services (the Postal Services Act), as 
amended most recently by Act No.51 of 20 June 2003;   the Regulations of 1 July 1997 relating to the 
provision of universal postal services;  and th e Licence of 26 September 2001 on reserved services 
and universal service obligations, granted to Norw ay Post.  The authorities indicate that their 
legislation is in compliance with EU Directives  97/67/EC (the Postal Services Directive) and 
2002/39/EF. 
143. The Postal Services Act provides that the suppl y of reserved postal services may be carried 
out only through a person who has been granted a licence by the Ministry of Transport and 
Communications.  The licence may be subject to a time-limit, and to a number of conditions, including the duty to provide universal postal services, and service and quality criteria.  No licence is required for postal services outside the reserved area. 
144. In accordance with the Postal Services Act,  Norway Post, a state-owned limited liability 
company based on shares, has been given the exclusive right to regul arly distribute, in return for 
remuneration, closed, addressed, domestic letters we ighing up to 100 grams.  The exclusive right to 
supply these reserved services is restricted by a pr ice limit:  only items with a price not exceeding 
three times the basic rate for a domestic priority letter of 20 grams are included in the list of reserved services.  The scope of the reserved area will be reduced to 50 grams and 2.5 times the basic tariff as of 1 January 2006.  The distribution of books, catalo gues, newspapers, and periodicals is not part of 
the reserved services.  Outbound cross-border mail is liberalized. 
145. As established in its licence, Norway Post has uni versal service obligations for:  priority and 
non-priority letters up to 2 kg;  postal parcels up to  20 kg;  newspaper and ma gazine subscriptions up 
to 2 kg (as priority and non priority letters);  insured items and cash-on-delivery items up to 20 kg;  
registered items up to 2 kg;  and cross-border postal items up to 20 kg.   
146. Prices for the universal services provided by Norw ay Post are to be calculated in accordance 
with actual costs.  For reserved services, there s hould be geographically uniform tariffs, which are 
subject to approval by the Ministry of Transport and Communications.   
147. An inter-ministerial working group, estab lished in 2003, studied the consequences of 
liberalization beyond the Postal Services Directive.  Its report, issued in March 2004, concluded that a 
fixed end-date for the opening-up of the Norwegia n postal market should be set as soon as possible.  
Based on the recommendations of this working group,  the Ministry of Transport and Communications 
submitted a proposal for full liberalization of the posta l market by January 2007.  It also planned to 
submit a White Paper on this issue to the Storting in autumn 2004. 
(iv) Transport 
148. Transport activities accounted for 6.6% of  GDP in 2002.  Norway made specific 
commitments under the GATS for air, rail, road, an d maritime transport services (Table AIV.1).  For 
cross-border supply, measures affecting market access and national treatment were left unbound, 
except for certain maritime and air transport services. 
(a) Maritime transport 149. Norway's coastal topography, the significance of its  offshore industries, and the fact that more 
than 90% of the population live within 10 km of th e coast make maritime transport an important WT/TPR/S/138 Trade Policy Review 
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component of Norway's economy.  Norway's fleet is the third largest in the world, in tonnage, behind 
Greece and Japan.  Norwegian enterprises also hold significant international market shares within 
associated maritime services, such as ship classificati on, financing, and insurance.  Maritime transport 
accounted for 2.0% of GDP in 2002.  Shipping makes up about 45% of Norway's services exports, 
with gross earnings of NKr 68.7 billion in 2003.  Ac cording to the authorities, about 68% of Norway's 
exports and 79% of its imports take place via maritime transport.  
150. At end 2003, 865 vessels with a total of 2.64 million gross tonnes were registered in the 
Norwegian Ordinary Ship Register (NOR), and 665 vessels with a total of 17.67 million gross tonnes 
were registered in the Norwegian International Ship Register (NIS) (Table IV.17).  In addition, the 
authorities indicate that 669 Norwegian-owned vessels were sailing under a foreign flag as at 
January 2004, with a gross tonnage of 14.1 million. 
Table IV.17 
International trade vessels registered in Norway, 1997-03 
Norwegian International Ship Register 
(NOR) Norwegian Ordinary Ship Register 
(NIS) Total 
Year 
Vessels Tonnage 
(1,000 GT) Vessels Tonnage 
(1,000 GT) Vessels Tonnage 
(1,000 GT) 
1997 949 2,610 691 19,592 1,640 22,202 
1998 969 2,799 713 19,547 1,682 22,346 
1999 954 2,985 705 19,109 1,659 22,094 
2000 923 3,174 768 18,931 1,691 22,105 
2001 910 2,896 775 19,210 1,685 22,106 
2002 896 2,677 750 18,801 1,646 21,478 
2003 865 2,640 665 17,668 1,530 20,308 
Source:  Information provided by the Norwegian authorities.  
151. The Norwegian Maritime Directorate, under the Ministry of Trade and Industry, is 
responsible for maritime transport policy formula tion and management.  In addition, several other 
ministries (Defence, Environment, Fisheries, Foreign Affairs, Justice, and Transportation) have shared responsibility for the sector.   
152. Reflecting the particular importance of maritime  transport in its economy, Norway takes an 
active role in international negotiations and discu ssions on shipping policy issues.  Its main policy 
goal is to develop equal market access conditions an d uniform rules on safety and environment at sea, 
thus enhancing market access for Norwegian sh ipping companies.  Norway has signed several 
conventions related to maritime transport.  It has ratified the Hague/Hague-Visby Rules for 
international maritime transport and is, inter alia , party to the UN Convention on a Code of Conduct 
for Liner Conferences, the UN Law of the Sea C onvention, and the IMO Convention on Load Lines 
(including the 2003 amendments).  Norway does not ha ve bilateral cargo-shari ng agreements or other 
restrictions on freight. 
153. In the ongoing service negotiations, Norway underlined the importance of maritime transport 
for world trade and called upon other Members to increase their number of commitments in the course of the negotiations.
27  Norway is among the proponents of a meaningful liberalization of maritime 
transport services.28  Its initial offer to the services negotia tions also provides for expanded specific 
commitments in maritime transport services.29 
                                                      
27 WTO document S/CSS/W/59, 14 March 2001. 
28 WTO document TN/S/W/11, 3 March 2003. 
29 WTO document TN/S/O/NOR, 7 April 2003. Norway WT/TPR/S/138 
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154. The Norwegian Maritime Code of 24 June 1994 was amended by Act No.8 of 5 April 2002 to 
incorporate into Norwegian law amendments of the IMO rules on damage caused by oil waste.  
Otherwise, no major changes in the regulation on ma ritime services have taken place since 2000.  The 
main legislation governing maritime transpor t is the Norwegian Maritime Code No. 39 of 
24 June 1994, with later amendments  up to Act No. 2 of 2 August 1996.30  The maritime transport 
subsector is included in the EEA Agreement, and No rway has continuously updated its legislation in 
line with EU/EEA regulations. 
155. Under Norwegian law, ships may be registered in  Norway or abroad.  If a Norwegian register 
is chosen, all ships longer than 15 meters may be entered in the Norwegian Ordinary Register (NOR), 
or in the Norwegian International Ship Register (NIS ).  To be registered in the NOR, ships must be 
owned by an EEA national or by a Norwegian company where EEA nationals own at least 60% of the capital of the owning partnership or company.  Limited liability ship-owning companies must be headquartered in Norway, and the majority of bo ard members must be EEA citizens resident in 
Norway.  Non-EEA nationals may not register a ship  in the NOR.  Ships registered abroad and then 
bought by a Norwegian company must comply with the standards of Norwegian classification before 
they can be registered in Norway. 
156. The NIS was established in 1987 with a view to  maintaining the shipping industry under the 
Norwegian flag by providing better conditions for th e Norwegian maritime fleet.  For example, there 
are no restrictions for employment of non-Norwegian seafarers for vessels registered in the NIS.  Registration in the NIS is subject to a fee of NKr 7,280 in the first year and NKr 5,800 in subsequent 
years.  Special provisions apply to pay and working conditions on ships registered in the NIS, which 
are fixed in a special collective wage agreement. 
157. Foreign shipping companies may also register th eir vessels in the NIS.  They must satisfy a 
nationality condition laid down in the Norwegian Ma ritime Code, be a limited company or partnership 
with head office in Norway, or have appoint ed a representative who fulfils the nationality 
requirements.  Ships with more than 40% foreign ownership must be operated by a Norwegian ship-
owning company with its head office in Norway , or by a Norwegian management company.  
However, nationality requirements may be waived in  certain cases, with prior dispensation from the 
Norwegian Maritime Directorate.  
158. Various trading area restrictions apply for ships re gistered in the NIS.  Ships registered in the 
NIS are not allowed to carry passengers and cargo be tween Norwegian ports or to engage in regular 
scheduled passenger transport between Norweg ian and foreign ports, including oil and gas 
installations on the Norwegian continental shelf.  The Ministry of Trade and Industry has issued 
regulations concerning special trading areas for NIS-registered vessels and offshore mobile units engaged in the petroleum industry.     
159. Shipping companies are subject to a special taxation regime.  They may choose to pay 
ordinary profit taxes at 28% based on the general tax rules, or a specific tonnage tax, which is 
calculated as a fixed amount on the tonnage of the v essel.  The payment of dividends to shareholders 
in companies included in the tonnage tax system is  subject to the 28% tax rate on profits.  This 
arrangement is limited to companies formed under the Norwegian Joint-Stock Company Act.  Income 
from the operation of ships registered in the NIS but  owned entirely by non-residents is not taxed in 
Norway.  Dividends paid to foreign shareholders in shipping companies under the tonnage tax system 
                                                     
 
30 Other important legislation includes Act No. 48 of 12 June 1987 relating to the Norwegian 
International Ship Register;  Act No. 7 of 9 June 1903 re lating to Public Control of the Seaworthiness of Ships, 
etc. (the Seaworthiness Act), as am ended up to 1995;  the Seaman's Act No. 18 of 30 May 1975;  and Act 
No. 84 of 17 December 1982 relating to Safe Containers. WT/TPR/S/138 Trade Policy Review 
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are subject to a withholding tax of up to 25%.  Reduced rates may apply to foreign shareholders if 
there is a tax treaty between Norway and their country of domicile. 
160. Most commercial ports are owned by municipalitie s.  Some ports may be owned by private 
companies with production or trade facilities.  The operation of ports is financed by fees on a cost-
recovery, non-discriminatory basis.  Bergen, Na rvik, and Karmsund are Norway's most important 
ports in terms of cargo handled. 
(b) Air transport 
161. Some 10.3 million passengers were  transported on domestic servi ces in 2003 (Table IV.18).  
SAS remains the dominant carrier;  as at April 2004 the Norwegian and Danish states each owned 
14.3% of the SAS Group, the Swedish state owne d 21.4%, and the remaining 50% was owned by 
private shareholders.  In addition to SAS, there are several private Norwegian carriers . 
Table IV.18 
Civil aviation statistics, 1994-03 
Passenger arrivals/departuresa Freight and mail received 
and sent (tonnes) Domestic scheduled
air service 
Domestic  International   
Scheduled  Charter  Scheduled Charter  Domestic International Passengersb 
1994 15,071,722 26,873 4,099,053 1,244,284 84,693 43,552 8,728,110 
1995 15,855,873 22,448 4,232,872 1,338,465 89,425 42,294 9,151,059 
1996 17,429,198 23,477 4,761,715 1,536,191 91,567 47,127 10,119,171 
1997 18,086,422 20,864 5,470,100 1,622,162 92,031 51,517 10,556,685 
1998 18,894,187 26,216 5,902,193 1,696,461 90,228 54,305 11,027,151 
1999  20,010,289 16,168 6,143,972 1,753,165 89,802 62,301 11,823,437 
2000 19,106,462 29,980 6,031,547 2,097,279 86,169 58,599 11,537,491 
2001 17,884,968 53,083 5,959,443 2,154,141 80,752 52,067 10,901,466 
2002 16,993,839 26,714 6,257,609 2,015,036 68,979 46,413 10,251,309 
2003 17,450,776 33,276 6,779,971 1,763,258 65,351 54,050 10,309,978 
a Excluding passengers in transit/transfer. 
b Including transfers.  
Source : Norway, Statistical Yearbook , various issues. 
162. Carriage of passengers and goods by air is regulated by the Norwegian Aviation Act of 
11 June 1993.   Norway has ratified the Warsaw Convention of 1929 and its amendments (the Hague 
Protocol of 1955 and the Montreal Protocols of 1975), the Guadalajara Convention of 1961, and the 
Chicago Convention of 1944.  The authorities indicat e that Norway plans to ratify the Convention for 
the Unification of Certain Rules for Internationa l Carriage by Air (Montreal Convention of 28 May 
1999) during 2004.   
163. Norway implements EU regulations in the field of  civil aviation as part of its participation in 
the EEA Agreement.  In accordan ce with the EEA Agreement, air lines operating in Norway are free 
to determine price levels, and the authorities may only interfere in the establishment of prices in 
special cases.  The regulations contain rules for the approval of air transport companies and, in order 
to ensure fair and free competition, for the distribut ion of take-off and landing slots, and the design of 
the computerized reservation systems.  The EE A Agreement also includes rules concerning 
compensation for overbooking, mutual reco gnition of pilot's cer tificates and joint 
technical/operational requirements for pilots and airl ine companies.  Cabotage is open to airlines from 
other EEA countries.  Non-EEA companies require sp ecial permission for cabotage;  according to the 
authorities no such permission has been requested in recent years. Norway WT/TPR/S/138 
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164. Norway has bilateral civil aviation agreements  with 58 countries, including an open-skies 
agreement with the United States.   
165. The Civil Aviation Authority (CAA), an autonomous regulatory body under the Ministry of 
Transport and Communications, is responsible for en suring air safety and issuing licences to airports, 
airline pilots, and crews.  Avinor AS, a state-owne d limited liability company, is responsible for air 
traffic control services in Norway.  Avinor AS owns and operates 45 airports over the country, including Norway's main international airport Gardemoen.   
166. Non-EEA companies serving the domestic ma rket are subject to foreign ownership 
restrictions.  Foreign ownership is limited to one th ird of the capital in the joint-stock company;  the 
other two thirds must be in the hands of No rwegian natural or legal persons or Norwegian 
governmental bodies.  
(v) Tourism 
167. The contribution of hotel and restaurant service s to GDP has been constant at about 1.3% 
since 2000;  taking into account other tourism-related services (passenger transport, activities of travel 
agencies, motion picture entertainment), tourism contributes about 4.4% to Norway's GDP and 
employs some 6.7% of the labour force.
31  Tourism is the only service subsector in which Norway has 
traditionally run a deficit;  exports of tourism services were NKr 18.0 billion in 2003, and imports 
were NKr 45.6 billion. 
168. Norway offers a large variety of natural a ttractions, such as its mountain regions and the 
fjords.  It is also noted for its natural phenomen a, particularly the northern lights and the midnight 
sun.  Other attractions include viking museums, th e Saami culture of northern Norway, medieval 
farms, and stave churches. 
169. No major changes have taken place in the regula tions relating to tourism services since 2000.  
The Ministry of Trade and Industry is responsible fo r policies related to tourism activities.  Applicants 
for a licence to run a restaurant service must furn ish proof of their qualifications to provide the 
service;  the licence is issued by local authorities.   
170. Since January 2004, Innovation Norway has been  the national marketing organ for tourism in 
Norway, replacing the Norwegian Tourist Board.  Its main tourism-related task is to achieve 
coordination between tourism companies and public bodi es to join international marketing efforts for 
the development and promotion of Norwegian touris t destinations.  Innovation Norway's activities are 
directed towards both the general public and tourism providers, and focus on information, 
presentation, and marketing of Norwegian travel products.  Innovation Norway's tourism-related 
budget is about NKr 200 million, of which a bout NKr 93 million is governmental support. 
171. Within the EEA, there is mutual recognition of  licensing and of certification requirements for 
some categories of service suppliers.  An ove rview of Norway's GATS commitments and MFN 
exemptions on services (including tourism services)  is contained in Tables IV.15 and AIV.1. 
 
                                                      
31 Statistics Norway (2003b). Norway WT/TPR/S/138 
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