WT/TPR/S/70 Trade Policy Review 
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) INTRODUCTION  
1. Continuity has prevailed in the formulation of trade policy in Norway.  Since Norway's last 
Review in 1996, the domestic institutional framework was changed by the creation of the Ministry of 
Trade and Industry, which was given responsibil ity over bilateral economic relations, maritime 
transport, export promotion, electronic commerce, and domestic trade.  The Ministry of Foreign 
Affairs remains responsible for trade policy form ulation and trade negotiations at the multilateral 
level.  Norway has amended its legislation to comp ly with its commitments and obligations under the 
European Economic Area (EEA) and the WTO Agreements.  
2. Norway participated in the WTO Negotiations on Financial Services a nd in the Negotiations 
on Basic Telecommunications.  Both the Fourth Protocol on Basic Telecommunications and the Second Protocol on Financial Servic es have been ratified by Parlia ment.  The authorities noted that 
the Fifth Protocol did not require ratification as it in corporated only technical changes that had already 
been addressed by Parliament during its review of the Second Protocol.  Norway has not been 
involved as plaintiff or defendant in any dispute in the WTO;  it has, however, reserved its third-party 
rights on five occasions.  Norway participates in the EEA and is a member of the European Free 
Trade Association (EFTA). It is part of an expandi ng network of free-trade agreements with countries 
in central and eastern Europe and in the Medite rranean region through its membership in EFTA.  
Free-trade agreements with Morocco and the Pal estinian Authority came into force in 1999, and 
agreements with Canada, Cyprus, Egypt, Jord an, Macedonia and Tunisia are under negotiation. 
3. National treatment is granted to foreign invest ors except in some key sensitive areas such as 
fisheries and airline operations, where foreign ownershi p is restricted.  Norway has other restrictions 
to investment, inter alia, regarding residency requirements in certain sectors and acquisition of 
secondary residences. 
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION  
(i) Main trade laws  
4. International treaties do not apply automatically in  Norway and, thus, to take force they must 
be incorporated by an Act of Parliament into dome stic legislation.  Only after this occurs may the 
provisions of trade agreements be invoked in domestic  courts.  At the time of its last Review, Norway 
had already amended a number of laws and regulatio ns to comply with its obligations under the WTO 
Agreements.  Since then, the process has intensifie d and numerous changes to legislation have been 
introduced, particularly in the area of services and in  intellectual property.  A number of regulations to 
implement changes in legislation or EEA require ments have also been introduced since 1996. 
5. Norway adopted a new general trade law in 1997 (Act No. 32 of 6 June 1997 concerning the 
regulation of imports and exports).  The authorities ha ve noted that, according to this Act, trade in all 
goods is freely permitted unless otherwise provided by  specific regulations.  The Act also precludes 
the introduction of restrictions contrary to No rway's international oblig ations.  The main law 
regarding tariffs and customs administration is the Customs Act No. 5 of 10 June 1966, amended 
since by Act No. 35 of 6 June 1997, Act No. 65 of 19 June 1997, and Act No. 56 of 17 July 1998.  
The main provisions regarding tariffs are the intr oductory provisions of the Norwegian Customs 
Tariff, based on an annual decision by the Norweg ian Parliament. Section 3 (amended in 1994) of 
those provisions deals with anti-dumping and subsid ies, while section 4 (amended in 1996) covers 
countervailing and safeguard measures.  Other main trade-related regulations and laws are shown in 
Table II.1. Norway WT/TPR/S/70 
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Table II.1  
Selected trade laws and regulations 
1. Tariffs, customs valuation, anti-d umping, and countervailing measures  
Customs Act No. 5 of 10 June 1966 as last  amended by Act No. 56 of 17 July 1998, Cu stoms Regulation No. 8962 of 15 December 
1967, last amended by Regulation No. 1338 of 21 December 1998;  Sec tion 3 of the introductory provisions of the Norwegian Custo m 
Tariff contains the Norwegian legislation with respect to anti- dumping and subsidies;  Secti on 4 of the introductory provisions  of the 
Norwegian Custom Tariff contains the Norwegian legisl ation regarding countervaili ng measures and safeguards.  
2. Import prohibitions, restrictions and licensing  
Regulations of 10 September 1998 pursuant to the Plants Diseases  Act of 14 March 1964;  Gene Technology Act of 2 April 1993, as  
amended in 1996;  Regulation of 28 July 1999 on the importation, production, exportation or sales of toys containing phthalates  for 
children of less than 36 months;  Act No. 65/1974 on narcotic dr ugs;  Regulation No. 656/1997 impl ementing the Montreal Protoco l on 
substances that deplete the ozone layer;   Regulation No. 656/1997 on the overall amount  of allowable HCFC;  Act  No. 16/1998 on  
weapons;  Regulation No. 265/1997 on weapons  and ammunition;  the Firearms, Explos ives and Fireworks Act No. 46/1977;  Act 
No. 143/1996 on telecommunications;  Regulation No. 322/1985 on subscriber equipment;  Regulation No. 589/1994 on 
communication equipment marking;  Regulation No. 479/1995 (contains a list of prohibited imports).  
3. Export prohibitions, restrictions, licensing and financing  
Act No. 4 of 7 June 1968 banning exports of  certain or all goods to certain destin ations;  Act No. 93 of 18 December 1987 on ex ports of 
strategic goods;  and Regula tions of 10 January 1989. 
4. Government procurement  
Public Procurement Act No. 116 of 27 Novemb er 1992;  Public Supplies Regul ations of 4 December 1992;  Public Services Regulatio ns 
of 1 July 1994;  Public Works Regulations of 4 December 1994;  and Regulations of Procurement Procedures of Entities Operating in 
the Water, Energy, Transport and Telecomm unications Sectors of 16 December 1994.  
5. Support programmes  
Act No. 117 of 27 November 1992 on state aid.  
6. Agriculture  
Marketing Act of 10 July 1936, as amended. 
7. Sanitary and phyto sanitary measures;  technical regulations  
Regulations concerning manufacture,  import, export and use of CFCs and halons, of 21 January 1991;  Regulations on tetrachlorid e 
and methyl chloroform, of 25 March 1995;  Regulations concerni ng HCFCs, of 25 September 1996;  Regulations concerning HCFCs 
and methyl bromide, of 14 July 1997;  Revised versi on of Annex I, Chapter I of the EEA Agreement.  
8. Competition policy  
Competition Act No. 65 of 11 June 1993 relati ng to competition in commercial activity;  Price Policy Act No. 66 of 11 June 1993 ;  
Act No. 109 of 27 November 1992 relating to implementation in No rwegian law of the main agreement on the EEA (EEA Act);  
Act No. 110 of 27 November 1992 relating to competition rules in  the EEA Agreement (EEA Competition Act);  Regulation No. 964 
of 4 December 1992 on substantive EEA competition rules;  and Regulation No. 966 of 4 D ecember 1992 on procedural EEA 
competition rules;  Act No. 8/1993 on competition policy (Competition Act). 
9. Intellectual property protection  
Patents Act (No. 9) of 15 December 1967, as amended by Act No. 82 of 22 December 1995, and Act No. 104 of 20 December 1996; 
Regulations of 20 December 1996 (patents);  Designs Act, No. 33 of 29 May 1970, as ame nded by Act No. 2 of 8 February 1980, Act  
No. 82 of 22 December 1995, and Act No. 104 of 20 December 1996;  Regulations on registration of designs of 20 December 1996;  
Trade Marks Act No. 4 of 3 March 1961, as amended by, mostly  recently, Act No. 82 of 22 December 1995, and Act No. 104 of 
20 December 1996;  Trade Mark Regulations of 20 December 1996. 
Source : Information provided by the Norwegian authorities. 
(ii) Agencies involved in trade policy implementation 
6. Overall responsibility for trade policy formulation at the multilateral level is with the Ministry 
of Foreign Affairs.  This includes responsibility for Norway's trade policy with in the framework of the 
WTO, the OECD, EU/EEA, and EFTA.  Other minist ries participating in trade policy formulation, 
within their respective are as of responsibility, include:  the Ministry of Agriculture;  the Ministry of 
Industry and Trade;  and the Ministries of Finance;  Fisheries;  Environment;  Local Government and Regional Development;  Petroleum and Ener gy;  and Transport and Communications. 
7. The main institutional change since the Review in 1996 was the establishment of the Ministry 
of Trade and Industry on 1 January 1997, which h as responsibility over bilateral economic relations, 
maritime transport, and efforts to promote busin ess and industry abroad.  The Ministry is also 
responsible for coordinating government policy concerning information technology, electronic WT/TPR/S/70 Trade Policy Review 
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commerce, domestic trade, and tourism.  The Minist er of Finance is responsible for tariff policy and 
other taxation issues, and the financial service sect or.  The Norwegian Customs and Excise is in 
charge of collecting tariffs and other duties app lied on imports;  it comprises the Directorate of 
Customs and Excise in Oslo and the Regional Cust oms Administration.  The Ministry of Fisheries 
oversees all activities in the fisheries sector, while the Ministry of Agriculture has responsibility for 
agricultural policy, including the administration of most government support.  The Ministry of Transport and Communications is charged with policy formulation in transport and 
telecommunications.  Competition policy formulation is the responsibility of the Ministry of Labour 
and Government Administration.  The Competition Authority, under the Ministry of Labour and 
Government Administration, is responsible for the implementation and enforcement of competition 
policy. 
8. Other bodies involved in trade policy formulati on or implementation include the Norwegian 
Export Council, the Norwegian Tourist Board, and the Norwegian Seafood Export Council.  The Business Legislative Committee, a government comm ittee in operation since 1990, has the task of 
analysing business conditions, and may propose the simplif ication or removal of legislation restricting 
companies' prospects. 
(3) G
ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
9. Norway is a Parliamentarian monarchy.  The Ki ng is the Head of State, and has formal 
executive authority. He has the formal authority to appoint and remove the Prime Minister and the members of the Cabinet.  Political power, however, lies with the Prime Minister and the Cabinet.  
Ministers are responsible for the administration of their respective ministries and for issuing 
regulations;  they report to Parliament.  In Ma rch 2000 there were 18 ministers.  The Office of the 
Prime Minister acts as secretariat to the Prime Mini ster and to the Council of State, and in matters 
related to the Prime Minister's international activ ities.  The King meets with the Council of State once 
a week. 
10. Legislative authority is vested in the Parliame nt.  Parliament is made up of 165 members from 
19 constituencies, elected for four-year periods by secret ballot on the basis of proportional 
representation.  It is divided in two chambers:  the lower chamber ( Odelsting ) has 124 members, and 
the higher chamber ( Lagting ) has 41 members.  The main powers of the Parliament, which may not be 
dissolved, include:  passing laws and amending or re pealing existing laws;  adopting the fiscal budget, 
including fixing annual state revenues (direct a nd indirect taxes including import tariffs) and 
expenditures;  monitoring the Government and the public administration;  and authorizing plans and 
guidelines for the activities of the Stat e, including foreign policy.  Bills passed by the Parliament must 
be signed by the King, but this is merely a form ality, since, under normal circumstances, the King 
does not refuse to approve a law passed by the Par liament.  Around 90 or more bills are introduced 
each year in the form of a proposal to the lower chamber of Parliament, mostly by the Government, 
but occasionally also by individual members of the that chamber. 
11. Most of the issues analysed by Parliament are first prepared by one of 12 standing 
committees.  The Finance Committee prepares a National Budget and a Fiscal Budget Recommendation every year, and submits a recommenda tion regulating taxes and duties, the size of 
certain dividends, and framework allocations to m unicipalities and counties.  The Parliament is the 
final authority in matters concerning the finances of the State.  The Parliament also has the task of 
reviewing treaties concluded with foreign countries.   In this respect, each year, the Ministry of 
Foreign Affairs sends information to the Parliame nt on all international treaties and agreements 
entered into by Norway, for examination and r ecommendation by the Standing Committee on Foreign Norway WT/TPR/S/70 
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Affairs.  If a treaty is of particular importance or necessitates a new statute or decision by the 
Parliament, the consent of the Parliament  must be obtained before ratification. 
12. The Norwegian civil court system comprises:  district or city courts;  courts of appeal, and the 
Supreme Court.  Civil cases must generally be brough t first to a Conciliation Board, which to a certain 
extent delivers judgements in first instance in a ddition to carrying out mediation, except for cases 
involving patents, layout-designs, plant breeders' ri ghts, and trade marks.  District courts have 
competence both in criminal and civil cases.  The courts  are administered by the Ministry of Justice.  
Judges are appointed by the King-in-Council, following recommendation by the Ministry of Justice. 
(i) Trade policy objectives and formulation 
13. Trade policy at the multilateral level is formulated by the Ministry of Foreign Affairs in 
coordination with several other Ministries;  ad hoc advisory groups also contribute to trade policy formulation.  The ultimate responsibility with resp ect to trade policy formulation and implementation 
rests with Parliament, which must approve all international treaties. 
14. According to the authorities, Norway's trade policy has continued to follow the two main 
tracks of closer European integration and multilate ral liberalization since the previous Trade Policy 
Review in 1996.  Trade regulations have been adjusted in many areas to comply with EEA 
requirements, meaning that Norway has adopted the EU's acquis communautaire with some 
exceptions, for example with respect to customs and tariff regulations .  Since 1996, trade policy has 
been generally liberalized with respect to market  access and, with the exception of agriculture, border 
measures have not been used actively to pursue any short-term trade goal.  However, the policy of 
exchange rate stability and the use of the State Pe troleum Fund (SPF) to sterilize oil revenue inflows, 
like trade policy, acted on the relative price of expor ts and imports.  Similarly, some of the support 
schemes run by Norway, although, with the main ex ception of shipbuilding, generally tailored to 
attain domestic goals, may also have an impact on trade through their effect on relative prices. 
15. Norway is seeking to liberalize the fisheries sect or in the WTO, implying also an elimination 
of environmentally damaging and trade distorting s ubsidies.  Norway is also favourable to the 
inclusion of competition policy and investment within the scope of the multilateral trading system.  
Norway generally maintains an open approach for th e industrial sector, where all products originating 
in other EEA States and products from developing countries that benefit from the GSP scheme enjoy 
duty-free treatment.  In agriculture, however, prot ection remains high, excep t for products from least 
developed countries, preferences are limited, market  access for some products remains considerably 
limited, and tariffs lack predictability, since temporar y adjustments are used at short notice to offset 
domestic supply shortages.  In petr oleum, the main salient objective is  to spread over time the benefits 
of current petroleum surpluses, through the SPF.  In  services, the authorities have noted that Norway 
seeks liberalization in a number of areas, includi ng telecommunications and information technology 
services, environmental services, maritime transport and maritime-related services. 
(4) F
OREIGN INVESTMENT REGIME  
16. The authorities noted that there had been no ch anges to the regulatory  framework governing 
investments since 1996.  Norway's investment regi me is based on a principle of equal treatment, 
regardless of nationality.  There are, in certain areas, regulations concerning permits and licences, 
inter alia , for the purchase or building of property.  Th ese regulations equally a pply to nationals and WT/TPR/S/70 Trade Policy Review 
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foreigners.  Norway also has obligations in acco rdance with the OECD Code of Liberalization of 
Capital Movements and Current Invisible Operations.1 
17. Norway has applied no restrictions on forei gn exchange movements since 1990.  Dividends, 
profits, interest, and contractual am ortization of loans, as well as repatriation of invested capital are 
freely and fully remittable, but must  be reported to the Central Bank. 
18. Although there are no standardized formal re quirements across sectors, some horizontal 
restrictions to foreign ownership do exist.  The ge neral manager and 50% of the board of directors of 
a public or private company must be residents of Norway.  This condition does not apply to EEA citizens resident in an EEA State.  The Ministry of Trade and Industry can make individual exceptions 
to this rule. 
 These limitations are included in Norway's GATS Schedule of Commitments. 
19. When an investor or a group of investors acqui res a number of shares that give them an 
ownership of more than one thir d, half or two-thirds of a company's share capital, or assets 
representing a business undertaking, there is a repor ting requirement.  This requirement only applies 
to acquisition of companies with a minimum turnov er of more than NKr 50 million or more than 
50 employees, or that has received more than NKr 5 million in government support for R&D during 
the previous eight years.  The requirement is based on the principle of equal treatment of all investors 
irrespective of whether they are foreign or not.  Furthermore, the reporting requirement does not 
apply, inter alia , to the acquisition of shares in insurance companies, banks and other financial 
institutions regulated by special legislation.  Fore igners need a licence for the purchase of real estate 
property for recreational use.  The acquisition of shares of Norwegian enterprises that own or lease 
secondary residences and real estate property is also subject to a special authorization if the 
acquisition exceeds certain limits. 
20. Foreign investment is also subject to sector-specific restrictions (Chapter IV).  For example, 
the Petroleum Act of 1996 granted the right to apply for a licence in exploration and development of petroleum activities only to individuals reside nt in the EEA (Chapter IV(6)(iii)).  Specific 
conditions apply to investment in credit ins titutions, insurance companies and securities firms 
(Chapter IV(8)(ii)), as well as fisheries and maritime transport (Chapter IV(4) and (8)(iv)(b)).  
Corporate profits are taxed at 28%;  branches of foreign companies are taxed on income earned in Norway. 
21. Small and medium-sized enterprises, entreprene urs and inventors in Norway receive support 
from a public advisory system that provides government sponsored services regarding, inter alia , 
technological competence, product development and di ssemination of relevant business information.  
Government support to these services amounted to NKr  100.5 million in 1999.  The public advisory 
system consists of the National Institute of Tec hnology, the North Norwegian Institute of Technology 
and Innovation, the Norwegian Design Council,  Euro Info and the Norwegian Government 
Consultative Office for Inventors.  The National In stitute of Technology has the task of providing 
nationwide information about existin g technology.  The North Norwegia n Institute of Technology and 
Innovation is responsible for provid ing northern Norway with technological services.  The Norwegian 
Design Council promotes the use of good design in market-oriented product development and 
communication.  Euro Info supplies informa tion about EU-related issues.  The Norwegian 
Government Consultative Office for Inventors help s inventors and small enterprises to develop and 
commercialize their technical ideas and inventions. 
                                                     
 
1 OECD (1995), p. 29. Norway WT/TPR/S/70 
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(5) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
22. Norway is a founding Member of the WTO.  No rway participated in the WTO Negotiations 
on Basic Telecommunications and the resulting protoc ol was ratified by the Norwegian Parliament on 
18 June 1997 (Chapter IV(8)(ii) and (iii)).  Norway has not participated directly as a plaintiff or a 
defendant in a dispute since the inception of the WTO.  It has, however, reserved its third-party rights 
on five occasions.  Notifications made by Norway to the WTO between 1996 and early 2000 are listed 
in Table AII.1. 
23. As part of the preparations for the 1999 Mini sterial Conference in Seattle, Norway submitted 
proposals in a number of areas such as agriculture2;  services3;  market access for industrial goods 
including fish and fish products4;  and trade and environment.5  Together with Bangladesh, Canada, 
Denmark, the Netherlands, Sweden and Switzerland,  Norway also presented a joint communication 
regarding the financing of WTO's technical assistance activities.6  Norway furthermore called for 
negotiations aimed at developing a multilateral horiz ontal framework on competition covering private 
and public conduct.  Norway also presented a joint pr oposal for the elimination of fisheries subsidies, 
together with Australia, Iceland, New Zeal and, Peru, the Philippines and United States.7 
(ii) Preferential agreements  
(a) EFTA and other free-trade agreements 
24. Norway is a founding member of the European Free Trade Association (EFTA).  EFTA, 
currently composed of Iceland, Liechtenstein, Norw ay and Switzerland, has provided for free trade in 
industrial products since 31 December 1966, and in fi sh and other marine products since 1992.  Trade 
in unprocessed agricultural products is cove red under separate bilateral agreements.  
25. EFTA has a network of bilateral free-trade agre ements (Table II.2), which provide for free 
trade in industrial products, including fish and other marine products, as well as in processed agricultural goods.  Trade in unprocessed agricultural  products is subject to bilateral protocols 
between individual EFTA countries and free-trade ag reement partners.  The agreements include 
evolutionary clauses on services and investment, and are generally asymmetric:  while the EFTA 
States eliminate all duties and other restrictions for products covered by the agreements upon entry 
into force, their partners abolish their duties only gr adually, with transition periods generally less than 
eight years.  All bilateral free-trade agreements between EFTA and other coun tries have been notified 
to the GATT/WTO. 
26. As a member of EFTA, Norway has concluded two new free trade agreements since 1996.  
The Agreement between the EFTA States and Morocco  was signed on 19 June 1997 and entered into 
force on 1 December 1999.  The interim Agreemen t between the EFTA States and the Palestinian 
Liberation Organization (PLO) for the benefit of the Palestinian Authority was signed on 
30 November 1998 and entered into force on 1 July 1999.  The agreements with Estonia, Latvia, 
                                                     
 
2 WTO document WT/GC/W/238, 6 July 1999. 
3 WTO document WT/GC/W/236, 6 July 1999 and WT/GC/W/325, 21 September 1999. 
4 WTO document WT/GC/W/185, 19 May 1999. 
5 WTO document WT/GC/W/176, 30 April 1999. 
6 WTO document WT/GC/W/259, 21 July 1999. 
7 WTO document WT/GC/W/303, 6 August 1999. WT/TPR/S/70 Trade Policy Review 
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Lithuania and Slovenia, which were  concluded before 1996, have ente red into force since the last 
Review (Table II.2). 
Table II.2  
Norway's participation in free- trade agreements, January 2000 
Date Entered into force Notified to GATT/WTO Name of agreement 
04.01.1960 04.01.1960 Yes  L/3328 Convention establishing the European Free Trade Association 
(applies to Iceland, Switzerla nd, Norway and Liechtenstein) 
14.05.1973 01.07.1973 Yes  L/3872 and Add.1 Ag reement between the EEC and Norway 
31.01.1985 01.02.1985 Noa Trade Agreement between Norway and Greenland 
10.12.1991 13.07.1992 Yes  L/6989/Add.1 Agreemen t between the EFTA States and Turkey 
04.03.1992 01.01.1993 Yes  L/ 7041/Add.1 Agreement between the EFTA  States and the Czech and Slovak 
Republic 
02.05.1992 01.01.1994 Yesb Agreement on the European Economi c Area (applies to:  Austria, 
Belgium, Denmark, Finland, France, Germany, Greece, Iceland, 
Ireland, Italy, Liechtenstein, Luxemburg, the Netherlands, Norway, 
Portugal, Spain, Sweden, and the United Kingdom) 
06.08.1992 01.07.1993 Noa Free Trade Agreement with the Faroe Islands 
17.09.1992 01.08.1993 Yes  L/7129/Add.1 Agreemen t between the EFTA States and Israel 
10.12.1992 01.09.1994 Yes  L/7372/Add.1 Agreemen t between the EFTA States and Poland 
10.12.1992 01.06.1994 Yes  L/7215/Add.1 Agreemen t between the EFTA States and Romania 
29.03.1993 01.06.1994 Yes  L/7257/Add.1 Agreement between the EFTA States and Bulgaria 
29.03.1993 01.06.1994 Yes  L/7360/Add.1 Agreemen t between the EFTA States and Hungary 
13.06.1995 01.09.1998 Yes  WT/REG20/N/1 Agreemen t between the EFTA States and Slovenia 
07.12.1995 01.06.1996 Yes  WT/REG29/N/1 Agreemen t between the EFTA States and Latvia 
30.08.1995 01.01.1997 Yes  WT/REG30/N/1 Agreemen t between the EFTA States and Lithuania 
07.12.1995 01.10.1997 Yes  WT/REG28/N/1 Agreemen t between the EFTA States and Estonia 
19.06.1997 01.12.1999 Yes  WT/REG91/N/1 Agreemen t between the EFTA States and Morocco 
30.11.1998 01 07.1999 Yes  WT/REG79/N/1 Agreement between the EFTA States and the PLO for the benefit of 
the Palestinian Authority 
a Greenland and the Faroe Islands are not covered by Article XXI V of the GATT of 1994:  they are not WTO Members and were 
not GATT contracting parties.  
b Covered by individual free-trade agreements between the EU and EFTA members, as notified to the GATT. 
Source : WTO documents;  and information pr ovided by the Norwegian authorities. 
27. Apart from the above-mentioned agreements, decl arations on cooperation, usually the first 
step towards the conclusion of free-trade agreem ents, have been signed between EFTA and Albania, 
Macedonia, Egypt, Jordan, Lebanon, and Tunisia.  Furthermore, Norway has a bilateral free-trade 
agreement with the EC, the EEC-Norway Agreement,  which entered into force on 1 July 1973, in 
addition to membership in the EEA, and with the Fa roe Islands and Greenland.  Free-trade agreements 
with Canada, Cyprus, Egypt, Jordan, Macedonia a nd Tunisia were under negotiation in March 2000. 
28. Outside of the scope of EFTA, Norway h as concluded bilateral agreements on 
trade and economic cooperation, with Croatia (s igned on 6 March 1996, entered into force on 
1 October 1997), Russia (signed on 26 March 1996, entered into force on 1 July 1996), Ukraine 
(signed on 27 January 1998, entered into for ce on 1 November 1998), and Vietnam (signed on 
22 April 1997, entered into force on 1 August 1997). 
(b) European Economic Area (EEA) 
29. Norway has been a member of  the European Economic Area (EEA) since 1 January 1994.  The 
EEA Agreement prevails over the free-trade agr eements between the EC and participating EFTA Norway WT/TPR/S/70 
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countries, although these, as well  as the Stockholm Convention of  1960 among EFTA States, remain 
valid.  The EEA Agreement allows for free moveme nt of goods, persons, se rvices and capital under 
equal conditions of competition.  EEA rules correspond to the EC acquis communautaire  in all areas 
covered by the EEA Agreement, and include coopera tion in other areas.  The institutional framework 
comprises an EEA Council at ministerial level, an  EEA Joint Committee, an EEA Joint Parliamentary 
Committee and an EEA Consultative Committee with re presentatives of social partners.  The EEA Joint 
Committee is responsible for the effective implementation and operation of the Agreement.  Although Norway participates in the single market through the EEA Agreement, it maintains its own MFN and 
preferential trade arrangements.  Rules of origin in the EEA Agreement are linked to other European 
free-trade agreements through a pan-European cumulation regime (Chapter III(2)). 
30. The EEA Agreement covers all trade in i ndustrial products (HS Chapters 25-97), except 
casein, certain albumins, and dextrin.  Alt hough the EEA Agreement does not cover the EU's 
Common Agricultural Policy or the Common Fisheries Policy, it contains provisions on various aspects of trade in agricultural and fishery produc ts.  The Agreement introduces an evolutionary 
clause aimed at progressive liberalization of agri cultural trade.  In the case of products with 
agricultural and industrial components, preferen tial treatment under the EEA  Agreement has been 
negotiated but a final agreement is yet to be conc luded.  A bilateral agreement between Norway and 
the EEC regulates preferential treatment for these pro ducts.  A revised version of Annex 1, Chapter 1 
of the EEA Agreement, establishing common procedures for imports of live animals and animal products from third countries, entered into force on 1 January 1999.  This prompted an alignment of 
Norwegian import regulations with those of th e European Union common procedures for the 
importation of live animals and anim al products as of 1 January 1999. 
31. EU legislation is applied in most sectors, e.g.  technical barriers to trade, public procurement 
and purchases, and marketing conditions of state monopolies.  Anti-dumping and c ountervailing 
measures regarding products covered by the EE A Agreement may not be applied to other EEA 
participants.  Safeguard measures may be used, in a non-discriminatory manner, in the event of "serious 
economic, societal or environmental difficulties of a se ctoral or regional nature liable to persist", or in 
response to balance-o f-payments problems.  
32. The EFTA Surveillance Authority is responsible  for monitoring the implementation of the EEA 
Agreement, while the EFTA Court of Justice examin es complaints with respect to competition policy 
involving the EEA Agreement independently and in  parallel with EU institutions.  The EFTA 
Surveillance Authority has the authority to send to th e Norwegian authorities Le tters of Formal Notice 
and Reasoned Opinions regarding regulat ions and practices in Norway.  If issues are not resolved at this 
level, they are examined by the EFTA Court of Just ice.  Among the several dozen cases brought to the 
EFTA Surveillance Authority, only a few reach the EFTA Court of Justice.  Since 1996, Norway has been involved in eight disputes in the EFTA Court of Justice concerning obligations under the EEA 
Agreement (Table II.3). 
33. In addition to the cases listed in Table II. 3, the EFTA Surveillance Authority addressed 
several Letters of Formal Notice and Reasoned Op inions regarding regula tions and practices in 
Norway in the period under review.  Several of these cases involved services, others referred to 
subsidies.  Salient cases in 1999 included:  a Reasoned Opinion sent to Norway by the EFTA 
Surveillance Authority for failure to comply with  EEA rules on freedom to provide services in the 
area of civil aviation by charging air transport taxes that discriminate between domestic flights and 
flights to other States of the EEA;  the author ization by the EFTA Surveillance Authority in 
December 1999 of the prolongation of two Norwegian aid schemes for shipbuilding until 
31 December 2000;  the extension of the validity of the system of regional aid in Norway to 31 December 2006;  a Letter of Formal Notice to Norway in March 1999 and a Reasoned Opinion in WT/TPR/S/70 Trade Policy Review 
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December 1999, for Norway's failure to comply with  EEA rules with respect to the independence of 
the regulatory system in telecommunications.  
Table II.3 
Disputes brought to the EFTA Court of Justice in which Norway was involved, 1996-1999 
Case Appellant/defendant Judgment 
E-7/97 Implementation of national provisions of 
Council Directive 92/104/EEC on the minimum 
requirements for improving the safety and health 
protection of workers in surface and underground mineral-extraction industries. EFTA Surveillance Authority/ 
Norway The EFTA Court ruled on 30 April 1998 that, 
by failing to adopt the time-limit prescribed in 
Council Directive 92/104/EEC, Norway had 
failed to fulfil its obligations under Article 13 of that Act and Art. 7 of the EEA Agreement. 
E-10/97 Implementation of national provisions of 
Council Directive 78/610/EEC on the protection 
of the health of workers exposed to vinyl 
chloride monomer. EFTA Surveillance Authority/ 
Norway The EFTA Court ruled on 19 June 1998, that 
by failing to adopt, within the prescribed time-
limit, the national provisions necessary to 
comply with Council Directive 78/610/EEC, Norway had failed to fulfil its obligations 
under Article 11 of that Act and Art. 7 of the 
EEA Agreement. 
E-1/98 Protection of a direct importer's 
copyright. Norway (Ministry of Health and 
Social Affairs)/Astra Norge AS The EFTA Court ruled on 13 February 1998, 
that Articles 11 and 13 of the EEA Agreement 
must be interpreted as not permitting, under certain conditions, the protection of a direct 
importer's national copyright in a Summary of 
Product Characteristics. 
W-6/98 EFTA Surveillance Authority's decision with respect to state aid. Norway/EFTA Surveillance 
Authority The EFTA Court dismissed on 20 May 1999, 
an application for annulment of decision No. 
165/98/COL of 2 July 1998 of the EFTA 
Surveillance Authority with regard to state aid in the form of regionally differentiated social 
security taxes. 
E-2/99 Recognition of prof essional education and 
training in the seafaring sector. EFTA Surveillance Authority/ 
Norway Case pending.  In December 1999, the EFTA 
Surveillance Authority d ecided that the failure 
by Norway to take the necessary measures to 
comply with the recognition of professional 
education and training in the seafaring sector should be brought before the EFTA Court. 
Source : Information provided by the Norwegian authorities. 
(iii) Generalized System of Preferences (GSP) 
34. Norway runs one of the most wide-ranging GSP schemes among industrial countries.  The 
product coverage under the GSP wa s extended in January 2000.  Developing countries generally 
enjoy duty-free and unlimited access for exports of  manufactures (HS Chapters 25-97), except for 
certain textiles, clothing, and footwear products.  The scope is more limited for agricultural products, 
although it was considerably enhanced as a result of the Uruguay Round.  Imports of industrial and agricultural products from least developed count ries are duty free with the exception of flour, 
grain, and feedingstuffs, to which tariff reductions  of 30% within indicative (import) limits are 
applied.  According to the scheme, imports of non-sensitive agricultural pr oducts from developing 
countries are duty free, while imports of other agricultural products from developing countries are subject to 10-15% tariff reductions (Chapter III(2)(iii)(e) and (v)(b)).  
35. Norway also provides substantial direct aid to developing countries, amounting to some 0.9% 
of GNP overall. 