WT/TPR/S/138 Trade Policy Review 
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II. TRADE AND INVESTMENT REGIMES 
(1) I NSTITUTIONAL FRAMEWORK , AND TRADE POLICY FORMULATION AND 
 I MPLEMENTATION  
1. Norway is a constitutional monarchy with a par liamentary democratic system of governance.  
No changes have occurred in its constitution, or in its trade policy formulation and implementation 
framework since its last TPR.1  Legislative authority is vested in the Storting, a modified unicameral 
parliament which, amongst other things, adopts the fiscal budget, fixes direct and indirect taxes, 
including import tariffs, monitors the Government and public administration, and authorizes plans and 
guidelines for state activities, including foreign policy.   When the Storting is exercising legislative 
functions, it is divided into two chambers, the Odel sting and the Lagting, eac h with relatively equal 
powers.  Proposals for bills are submitted first to  the Odelsting and thereafter to the Lagting.  
Decisions on the state budget, including taxes and customs tariffs, are dealt with in the plenary 
assembly.  Bills passed by the Storting must be signed by the King (vested with formal executive 
authority), but this is merely a formality, since,  under normal circumstances, the King does not refuse 
to approve a law passed by the Storting.  All Royal Decrees must be signed by the King and the Prime 
Minister. 
2. Most of the issues tabled at Storting are analy sed by one of its twelve standing committees.  
The Finance Committee prepares annual national budgets and fiscal budget recommendations;  it 
submits recommendations on taxes and duties, the si ze of certain dividends, and revenue allocations 
to municipalities and counties.  The Storting is the final authority in matters concerning the finances 
of the State.  It decides tariff rates annually.   However, for agricultural goods the Norwegian 
Agricultural Authority and the Norwegian Cust oms and Excise may decide to reduce tariffs 
temporarily by means of administrative decision in order to facilitate increased imports as a supplement to domestic production.
2  The Storting is also tasked with reviewing all international 
agreements and treaties, through its Committee on Fo reign Affairs.  If a treaty is of particular 
importance or necessitates a new statute or decision by the Storting, the consent of Storting must be 
obtained before ratification.   
3. The Ministry of Foreign Affairs has overall responsibility for trade policy formulation.  
However, various aspects of trade policy are spread across a number of ministries and agencies, most 
notably:  the Ministry of Finance (tariff policy and taxation, financial services);  the Norwegian 
Customs and Excise (import duty collection);  the Mi nistry of Trade and Industry (bilateral economic 
relations, EFTA third-country relations, maritime tr ansport, business and industry promotion abroad, 
domestic trade, state-owned enterprises, informati on technology and e-commerce);  and the Ministries 
of Agriculture (agricultural policy, support progra mmes), Fisheries, Petroleum and Energy, Transport 
and Communication (transport, telecommunications), Justice (intellectual property rights), and Labour 
and Government Administration (competition po licy).  Other bodies involved in trade policy 
implementation include Innovation Norway and the Norwegian Seafood Export Council.  The 
authorities indicate that the Government generally c onsults extensively on trade-related issues with 
business and other non-governmental institutions.  The Business Legislative Committee, a government committee in operation since 1990, has th e task of analysing business conditions, and 
may propose the simplification or removal of le gislation restricting companies' prospects. 
4. The Instructions for Official Studies and Repor ts of 2000 and the Public Administration Act 
of 1967 seek to ensure a consultative legislative and decision-making process by requiring that public 
                                                     
 
1 See WTO (2000) for details. 
2 Decisions to reduce tariffs administratively are based on Ministry of Agriculture Regulation No. 1315 
of 18 December 2000. Norway WT/TPR/S/138 
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and private institutions and organizations are give n the possibility to express their opinions before 
legislation is issued, amended or repealed.  Th e period for consultation should normally be three 
months, and no less than six weeks;  foreign entiti es established in Norway may participate.  In 
principle, the procedure extends to regulations arising from Norway's participation in the EEA, 
though, in practice, consultation is hampered by pr actical difficulties in accessing deliberations at the 
EU level, and the limited scope for national adjust ment of laws and directives adopted at the EEA 
level.3  All legislation must be published in the Norwegian Legal Gazette .4 
5. Norway's civil court system comprises courts of first instance;  courts of appeal;  and the 
Supreme Court.  Civil cases must generally be bro ught first to a Conciliation Board, which, to a 
certain extent, delivers judgements in first instan ce in addition 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, fo llowing recommendation by the National Courts 
Administration. 
(2) TRADE POLICY OBJECTIVES  
6. Norway's main economic policy objective is th e further development of an innovative, 
competitive, and job-creating economy.  National, European, and global requirements, as well as 
sustainable-development are taken into consideration.   To achieve this objectives, several elements of 
economic policy, including its trade component, will need to be implemented.  With regard to 
international trade, Norway seeks to liberalize its trading regime following several different tracks:  
on an MFN basis through WTO negotiations;  on a regi onal basis through its membership of the EEA;  
on a bilateral basis through reciprocal agreem ents negotiated by EFTA;  and through its non-
reciprocal preferential schemes for developing a nd least developed countri es.  Moreover, Norway 
continues, on a unilateral basis, to dismantle impor t tariffs, in particular on non-agricultural products.  
7. Norway is seeking further multilateral liberali zation of the non-agricultural sector, including 
fish and fish products.  It generally maintains an open approach for this sector, where practically all 
products enjoy duty-free treatment.  In agriculture , however, protection rates and domestic support 
remain substantial, to address various non-trade con cerns.  In petroleum, the main objective is to 
spread the benefits of current petroleum surpluses over time, through the State Petroleum Fund.  In 
services, Norway seeks multilateral liberalization in  a number of areas, including telecommunications 
and information technology services;  energy, enviro nmental, and financial services;  and maritime 
transport and maritime-related services. 
8. The authorities indicate that Norway intends to  continue negotiating free-trade agreements 
through EFTA as a supplement to the mu ltilateral framework of the WTO.   
(3) MAIN TRADE LAWS AND REGULATIONS  
9. The implementation of legislation to ensure  compliance with WTO Agreements primarily 
took place during the period 1995-2000.  Hence, sin ce the time of Norway's last TPR, changes in 
trade legislation have been driven mainly by a combination of autonomous policy initiatives and the 
need to comply with EEA legislation.  There ha ve been no major changes to legislation governing 
tariffs, customs valuation, and contingency trad e remedies.  Likewise, legislation on import and 
export prohibitions, restrictions, and licensing remain as they were at the time of the last TPR of 
                                                      
3 OECD (2003c).  
4  The Gazette  and the texts of all laws and regulations are available online at:  http:/www.lovdata.no/.  
Most laws have unofficial English translations.  WT/TPR/S/138 Trade Policy Review 
Page 14 
 
 
Norway.  The Immigration Act was relaxed in 2002  in order to attract highly skilled workers from 
outside the EEA.  The Government has also in itiated a major review of it competition policy and 
enacted a new Competition Law, effective May 2004 (Chapter III(4)(ii)).   
10. Act No. 32 of 6 June 1997 concerning the regul ation of imports and exports is Norway's 
principal trade law;  it establishes that trade in a ll goods is permitted unless otherwise provided for by 
specific regulations.  Customs Act No. 5 of 10 June 1966, as amended, and the Storting's annual 
decision on tariffs and customs are the main legal basis for tariffs and customs administration.  The principal laws and regulations governing foreign trade are listed in Table II.1. 
Table II.1  
Main trade-related laws and regulations, May 2004 
Tariffs, customs valuation, and contingency trade remedies  
Customs Act No. 5 of 10 June 1966 as amended; Cust oms Regulation No. 8962 of 15 December 1967 as amended  
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;  Act No. 65/1974 on narcotic drugs;  Regulation No . 656/1997 implementing the Montreal  Protocol;  Act  No. 16/1998 on 
weapons;  Regulation No. 265/1997 on wea pons and ammunition;  the Firearms, E xplosives and Fireworks Act No. 46/1977  
Export prohibitions, restrictions, and licensing  
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 Regul ations of 10 January 1989 
Government procurement  
Public Procurement Act No. 69 of 16 June 199 9;  Regulation on Public Procurement No. 616 of June 2001;  Regulation of Procureme nt 
Procedures of Entities Operating in th e Water, Energy, Transport and Teleco mmunication Sectors of 5 December 2003 
Support programmes  
Act No. 117 of 27 November 1992 on state aid  
Agriculture  
Marketing Act of 10 July 1936, as amended;  annual Agricultural Agreement 
Sanitary and phyto sanitary measures  
Food Law of 1 January 2004;  Regulati ons relating to plants and measures against pests of 1 December 2000 
Competition policy  
Competition Act of May 2004;  Price Policy Act No. 66 of 11 June 1 993;  Act No. 34 of 21 June 2002 on Sale of Consumer Goods  
Intellectual property protection  
Patents Act No. 9 of 15 December 1967, as amended;  Designs Act No. 15 of 14 March 2003;  Trade Marks Act No. 4 of 3 March 1961 , 
as amended;  Copyrights Act No. 2 of 12 Ma y 1961, as amended;  Layout-design Act No. 27 of 15 June 1990 as amended;  Act on pla nt 
breeders' rights No. 32 of 12 March 1993 
Source : Information provided by the Norwegian authorities. 
(4) INVESTMENT REGIME  
11. Norway's investment regime is based on the principle of equal treatment.  Nationality 
restrictions exist with respect to activities and ownership in the fishing and maritime transport 
subsectors.  The Fishing Limit Act No. 19 of 17 Ju ne 1966, prohibits foreigners from fishing inside 
the Norwegian Economic Zone.  A number of foreign vessels are, however, granted licences to fish on 
the basis of bilateral agreements.  Only Norwegia n nationals or joint-stock companies having their 
registered office in Norway may obtain a concession to acquire registered Norwegian fishing vessels, 
or shares in a company that owns such vessels.  Mo reover, the majority of the members of the board 
of a joint-stock fishing company,  including the chairman, must be  Norwegian citizens residing in 
Norway, and at least 60% of the equity capital mu st be owned by Norwegian nationals.  Also, the 
processing, packing or reloading on the vessel of fi sh, crustaceans, and molluscs or parts and products 
of these, caught inside the fishing limits of the No rwegian Economic Zone, is restricted to Norwegian 
nationals (or companies as specified above).  Fo reign vessels licensed to fish in the Norwegian 
Economic Zone are exempt from this restriction.  In  maritime transport, vessels inscribed in Norway's 
Ordinary Ship Register must be owned by an EEA citizen or by an EEA company where EEA citizens 
hold at least 60% of the capital (Chapter IV(8 )(iv)(b)). Non-EEA persons are thus excluded from 
engaging in maritime cabotage. Norway WT/TPR/S/138 
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12. The Government has taken various measures to improve the investment environment.  The 
law imposing specific reporting requirements on invest ors owning more than one third, one half, or 
two thirds of a company's share capital, was repealed on 1 July 2002.   The Government also abolished the investment tax of 7% that applied to purchases of business assets, effective 
October 2002.  This tax, and the associated complex set of regulations administering its exemptions, 
had been identified as a significant impediment to  business.  The Government has also launched a 
"Simplifying Norway" action plan aimed particul arly at simplifying the regulatory framework in 
specific sectors   The plan contains a series of specific actions to enhance framework conditions for the business society, with a view to providing an easily accessible regulatory framework and reducing 
reporting obligations.  Furthermore, Norway has offe red to extend some of the liberalization efforts 
first made in the EEA context to the multilatera l level through its offer on services under the Doha 
Development Agenda (section (5)(i)).   
13. The general rate of corporate tax remains at 28%, and foreign companies are taxed on revenue 
earned in Norway through permanent establishment.  Investment incentives are generally available to 
both Norwegians and foreigners (Chapter III(4)(i));  specific tax regimes continue to apply to the 
petroleum and shipping  subsectors.  A tax refund scheme for R&D expenditures is available to all 
enterprises (Chapter III(4)(i)(b)).  No rway has applied no restrictions  on foreign exchange movements 
since 1990.  Dividends, profits, interest, and contract ual amortization of loans, as well as repatriation 
of invested capital, are freely and fully remittabl e, but must be reported to the Central Bank. 
(5) T
RADE AGREEMENTS  
(i) World Trade Organization 
14. Norway is an original Member and active par ticipant of the WTO.  It grants at least MFN 
treatment to all its trading partners.  At the Doha  Ministerial Conference in 2001, Norway underlined 
its commitment to a new round of trade negotiations with a clear development profile.5  Under the 
Doha Development Agenda, it has submitted proposals, either on its own or in conjunction with other 
WTO Members, on agriculture6, market access for non-agricultural products7, trade and environment8, 
and rules.9  Its position on the Doha Development Age nda was reiterated at the Cancún Minsterial 
Conference in 2003.10  Norway seeks improvements in mark et access for non-agricultural products 
through comprehensive reduction in tariffs and the dismantling of quantitative restrictions;  stronger 
disciplines in the area of anti-dumping measures in or der to eliminate trade distortions resulting from 
their use;  further liberalization of the services sector ;  and the elimination of fisheries subsidies that 
lead to increased fishing capacity.  It is of the vi ew that non-trade concerns have to be taken into 
account in the context of agriculture liberaliza tion.  Although Norway initially supported starting 
negotiations in the WTO on investment, competition policy, trade facilitation, and transparency in 
                                                      
5 WTO document WT/MIN(01)/ST/32, 10 November 2001. 
6 WTO documents G/AG/NG/W/36, 22 September 2000; G/AG/NG/W/101, 16 January 2001;  
JOB(02)/165, 15 November 20 02;  JOB(02)/166, 18 November 2002;  JOB(02)/218, 18 December 2002;  
JOB(02)/219, 18 December 2002;  JOB(02 )/165/Add.1, 14 Februa ry 2003;  and JOB(03)/ 169, 21 August 2003. 
7 WTO document TN/MA/W/7, 4 September 2002. 
8 WTO document TN/TE/W/25, 28 March 2003. 
9 WTO documents TN/RL/W/6, 26 April 2002;  TN/RL/W/10, 28 June 2002;  TN/RL/W/28, 
15 November 2002;  TN/RL/W/29, 15 November 2002;  TN/RL/W/46, 24 January 2003;  TN/RL/W/76, 
19 March 2003;  TN/RL/W/83, 25 April 2003;  TN/RL/W/93, 2 May 2003;  TN/RL/W/113, 6 June 2003;  TN/RL/W/18, 12 June 2003;  TN/RL/W/119, 16 June 2003;  TN/RL/W/158, 28 May 2004  (all on anti-
dumping); TN/RL/W/104, 6 May 2003 (on subsidies and countervailing measures);  and TN/RL/W/58, 
10 February 2003 (on fisheries). 
10 WTO document WT/MIN(03)/ST/17, 10 September 2003. WT/TPR/S/138 Trade Policy Review 
Page 16 
 
 
government procurement, it has expressed its willingn ess to join a consensus on only the inclusion of 
trade facilitation in the Single Undertaking of the Doha Development Agenda. 
15. Norway has interest in further liberalization, at the multilateral level, of trade in services, 
especially in telecommunications and information te chnology;  energy, enviro nmental, and financial 
services;  and maritime transport and services.  Its initial offer is aimed at relaxing certain horizontal 
exemptions on national treatment, such as land owne rship restrictions on foreign-owned corporations 
established in Norway.11  It also aims to deepen liberalizati on by taking on commitments in subsectors 
not previously in the schedule.  In these subs ectors, it would extend to the multilateral level 
liberalization it undertook at the EEA level.  
16. Norway is a party to the Information Technol ogy Agreement, and to all the plurilateral 
Agreements concluded under the WTO.  
17. Norway has supported WTO technical assistance  by making contributions of SwF 1.1 million 
in 2002 and 2003, and SwF 1.8 million in 2004 to th e Doha Development Agenda Global Trust Fund.  
It also helped to finance the NGO Symposium in 2003 and 2004, and provi ded financial support to 
cover travel expenses for representatives from leas t developed countries to the Cancún Ministerial 
Conference. 
18. Notifications made by Norway to the WTO since 2000 are listed in Table II.2. 
19. Since its last TPR in 2000, Norway has been a co mplainant in one dispute, and a third party in 
five others.  The dispute involving Norway as a co mplainant concerned definitive safeguard measures 
imposed by the United States on imports of certain steel products.  Consultations requested by 
Norway and other Members (in April 2002) did not achie ve a mutually satisfactory solution.  In June 
2002, the DSB established a panel to examine the issue.  The Panel report, circulated in July 2003, 
concluded that the safeguard measures were inc onsistent with the Agreem ent on Safeguards and the 
GATT 1994.12  The Appellate Body upheld the Panel's conclusions.13 
20. The disputes involving Norway as a third party re late to countervailing duties imposed by the 
United States on certain steel products from German y;  the United States' Continued Dumping and 
Subsidy Offset Act of 2000;  the United States' sunset review of anti-dumping duties on certain steel 
products from Japan;  the Republic of Korea's measur es affecting trade in commercial vessels;  and 
the European Communities' measures affecting th e approval of marketing of biotech products.14 
Table II.2 
Norway's notifications under the WTO Agreements, April 2004 
WTO Agreement Description of requirement/content  WTO document and date (latest if recurrent)
Agreement on Agriculture   
Article 10 and 18.2 Export subsidies   G/AG/N/NOR/40, 11 November 2002 
Article 16.2 Impact on net food-impor ting countries; food and technical 
assistance G/AG/N/NOR/37, 11 November 2002 
 
Article 18.2 Tariff and other quota comm itments G/AG/N/NOR/38, 11 November 2002 
Article 18.2 Domestic support  G/AG/N/NOR/41, 10 March 2003 
Article 5.7 and 18.2 Special safeguard pr ovisions  G/AG/N/NOR/39, 11 November 2002 
Table II.2 (cont'd)
                                                      
11 WTO document TN/S/O/NOR, 7 April 2003. 
12 WTO document WT/DS254/R, 11 July 2003. 
13 WTO document WT/DS254/AB/R, 10 November 2003. 
14 WTO documents WT/DS213;  WT/DS217;  WT/DS234 and WT/DS244;  WT/DS/254; and 
WT/DS/291, WT/DS/292, and WT/DS/293.  Norway WT/TPR/S/138 
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WTO Agreement Description of requirement/content  WTO document and date (latest if recurrent)
Agreement on Implementation of GATT Article VI (Anti-dumping)  
Article 16.4 Anti-dumping actions ta ken  G/ADP/N/98/Add.1, 22 April 2003 
Article 16.5 Notification of competent au thority  G/ADP/N/14/ Add.11, 20 October 2000 
GATS     
Article V:7 (a) Regional integration Agreements  S/C/N/226, 24 January 2003 
S/C/N/207/Corr.1, 7 February 2003 
S/C/N/207, 3 December 2002 S/C/N/166/Corr.1, 9 October 2001 
S/C/N/166, 22 August 2001 
GATT 1994    
Article XVII:4(a)  State trading enterprise s;  notification of products traded by 
state enterprises  G/STR/N/7/NOR, 15 November 2001 
G/STR/N/6/NOR, 28 September 2000 
Article XXIV:7(a)  Notification of free trade areas for trade in services WT/REG148/N/1, 24 January 2003 
WT/REG133/N/1, 22 January 2002 
WT/REG132/N/1, 22 January 2002 
WT/REG126/N/1/Corr.1, 17 September 2001 
WT/REG126/N/1, 22 August 2001 WT/REG117/N/1, 31 January 2001 
WT/REG91/N/1, 18 February 2000 
Enabling Clause Generalized System of Pr eferences WT/COMTD/N/6/Add.2, 18 January 2001 
Agreement on Import Licensing Procedures   
Article 7.3 Replies to questionnaire  G/LIC/N/3/NOR/2/Add.2, 25 April 2000 
Agreement on Government Procurement    
ArticleXIX:5  Notification of procurement statistics  GPA/70/Add.1, 28 November 2002 
Article XXIV:6 Modification to notes unde r Appendix 1  GPA/W/228, 12 December 2002 
Annex 3 Notification of national thre sholds GPA/W/285/Add.6, 15 March 2004 
Agreement on the Application of Sanitary and Phytosanitary Measures   
Article 7 Annex B.  Laws and regul ations  G/SPS/N/NOR/10, 25 August 2003 
G/SPS/N/NOR/9, 11 April 2003 
G/SPS/N/NOR/8, 4 April 2003 
G/SPS/N/NOR/7, 17 February 2003 
G/SPS/N/NOR/6, 21 December 2001 G/SPS/N/NOR/5, 21 December 2001 
G/SPS/N/NOR/4, 25 August 2000 
Agreement on Safeguards    
Article 12.5 Proposed suspension of concessions  G/SG/45, 21 May 2002 
Agreement on Subsidies a nd Countervailing Measures   
Article 25.1 Notification of subsidies  G/SCM/N/95/NOR, 17 July 2003 
Article 25.11 Countervailing duty actions taken G/SCM/N/98/Add.1, 20 October 2003 
Article 25.12 Notification of competen t authorities and procedures governing 
the initiation and conduct of investigations on subsidies G/SCM/N/18/Add.11, 20 October 2000 
Agreement on Technical Barriers to Trade    
Article 10.6 Technical regulations   G/TBT/N/NOR/1, 17 September 2001 
G/TBT/NOTIF.00/82, 16 February 2000 
G/TBT/NOTIF.00/196-99, 18 April 2000 
Agreement on Textiles and Clothing    
Article 2.11 Notification of programmes of integration  G/TMB/N/ 359/Add.1, 7 March 2001 
G/TMB/N/359, 18 December 2000 
Article2.15 Elimination of restric tions  G/TMB/N/356, 15 September 2000 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 67 Notification of contact point for tec hnical cooperation IP/N/7/Rev.2/Add.4, 24 April 2001 
Article 63.2 Laws and regulations   IP/N/1/NOR/1, 18 June 1996 
 
Source: WTO documents.  
(ii) Preferential trade agreements  
(a) European Free Trade Association (EFTA) 
21. Norway is a founding member of EFTA, currently composed of Iceland, Liechtenstein, 
Norway, and Switzerland.  The EFTA ushered in free trade in industrial products on 
31 December 1966 and in fish and other marine pr oducts in 1992.  Trade in unprocessed agricultural WT/TPR/S/138 Trade Policy Review 
Page 18 
 
 
products is subject to bilatera l agreements between EFTA countries.  The EFTA convention also 
contains provisions targeted at eliminating state aid, certain measures in relation to public undertakings, restrictive business practices, dumping, and the right of establishment.   
22. An updated EFTA convention was adopted on 21  June 2001 and ratified by Norway on 
15 February 2002;  it entere d into force on 1 June 2002.
15  The main motivation for the revision of the 
convention was to extend to the other three EFTA count ries, on a reciprocal basis, the contents of the 
seven bilateral agreements concluded by Switzerland and the European Union in 2001.  This had the 
effect of deepening integration between Swit zerland on one hand and the other EFTA countries, 
which are part of the European Economic Area (EEA), on the other.   
23. The substantive areas of integration covered by the revised EFTA convention are:  (i) free 
trade in non-agricultural products (including fish);   (ii) common rules for mutual recognition of 
conformity assessment16;  (iii) free movement of persons between all four EFTA states17, along with 
the application of common principles in the area of social security18, and the mutual recognition of 
professional diplomas19;  (iv) investment and services – freedom of establishment, cross-border 
supply and consumption abroad are provided fo r between the EEA's three EFTA countries and 
Switzerland, though certain exemptions remain20;  (v) land and air transport – gradual reciprocal 
liberalization of markets for the transportation of  persons and goods by land is required, and  EFTA 
airline companies will have access to each other's ma rkets on a reciprocal basis, with unrestricted 
freedom of establishment (Chapter IV(8)(iv))21;  (vi) government procurement – commitments were 
more substantial than those under the Plurilateral Ag reement on Government Procurement, in terms of 
sectoral coverage in goods and services and threshold values (Chapter III(4)(iii));  and 
(vii) agriculture – under the revised EFTA conventi on, tariff schedules, previously set by bilateral 
agreements, were incorporated into the conventio n.  Furthermore, under the revised convention, 
individual EFTA states made add itional concessions for certain agricultural products, such as cheese 
and various types of meat.  The principle of paralle lism between the treatment accorded to the EU or 
any other third country and an EFTA state is maintained. 
24. Through its membership of the EFTA, Norway is part of an expanding network of free-trade 
agreements.  Since Norway's previous TPR, EFTA h as concluded bilateral free-trade agreements with 
Croatia, Chile, Jordan, the Former Yugoslav Repub lic of Macedonia, Mexico, and Singapore.  In 
                                                      
15 WTO document WT/REG154/1, 7 July 2003. 
16 The EFTA states issued two joint declarations stating that the EFTA Convention and the Swiss-EC 
mutual recognition agreement were to be applied and updated in parallel.  
17  Free movement of Swiss citizens to  Norway and Iceland took effect upon the entry in to force of the 
revised EFTA convention;  freedom of movement to Switzerland for all EFTA citizens is subject to a five-year transitional period.  As an intermediate measure, Switz erland undertook to reserv e special quotas for EFTA 
citizens from the date of entry in to force of the agreement.    
18 These are:  a person can only be  subject to the legislation of one EFTA state (typically the one in 
which he or she works);  equal treatme nt of EFTA state nationals;  an EF TA state must take into account the 
period during which contributions were being paid in another EFTA state, when deciding on the amount of 
benefit;  the right to benefits remains the same when an insuree moves to another EFTA state.  These principles 
apply to sickness and maternity, accident s at work, occupational diseases, i nvalidity benefits, old-age benefits, 
survivor's death grants, unemployment benefits, and family benefits.     
19 This applies to the following specialized areas:  legal professi ons;  medical and paramedical 
activities;  architecture;  and commerce and intermediaries.   
20 The Norwegian exemptions applying to Switzerland are in Annex N to the revised EFTA 
Convention;  they are scheduled to be reviewed.    Establishment in the field of land and air transport is covered 
separately.  Any further liberalization measures on trade in services undertaken by one state vis-à-vis  the 
European Union must be extended to all EFTA countries. 
21 An exception is in place for Swiss operators in Iceland.  Norway WT/TPR/S/138 
 Page 19 
 
 
addition, EFTA has preferential agreements with Bulgaria, Croatia, Israel, Morocco, the Palestinian 
Authority, Romania, and Turkey.  An additional ag reement, with Lebanon, was signed in June 2004.  
As with previous agreements c oncluded by EFTA, all the new agreements provide for free trade in 
non-agricultural products (including fish and othe r marine products), as well as improved market 
access for some processed agricultural goods.  Trad e in unprocessed agricultural goods is subject to 
bilateral protocols between indivi dual countries.  In addition to its free-trade agreements through 
EFTA, Norway has bilateral agreements with the Faroe Islands and Greenland. 
25. The agreements EFTA has concluded, with respectively Croatia22, Jordan23, and the Former 
Yugoslav Republic of Macedonia24 share in their structure a number of features with those it 
concluded in the 1990s:  asymmetric liberalization,  with partner countries provided with transition 
periods ranging from nine to twelve years to  phase in liberalization commitments, and EFTA 
countries implementing liberalization on the date of entry into force of the agreements;  provisions 
relating to safeguard measures, including those unde rtaken by partner countries in the context of 
structural adjustment;  an intention to develop di sciplines on government procurement, with a view to 
undertaking commitments beyond those of the WTO Plurilateral Agreement on Government 
Procurement;  evolutionary clauses on services and inv estment;  and rules regarding undertakings that 
could restrict, prevent or distort competition, and abuse of dominant positions.  
26. The agreements signed between EFTA and Mexico25, Singapore26, and Chile27 differ from 
EFTA's other bilateral agreements.  They are not asymmetrical in their implementation (though 
Mexico was granted longer phase-out periods for so me classes of products), and are much more 
comprehensive in coverage.  All three agreements  contain sections providing for liberalization of 
trade in services, on a reciprocal basis and in accord ance with GATS Article V.  The agreements with 
Mexico and Chile contain a section on competition policy through which parties undertake to apply 
competition laws to avoid the undermining or nu llification of benefits due to anti-competitive 
business conduct, and to cooperate on issues c oncerning competition law enforcement.  The 
agreements with Mexico and with Chile also c ontain a section on government procurement, which 
establishes national treatment and non-discriminati on in relation to procurement entities, goods, and 
services listed in their annexes;  the prohibition of offsets;  and procedures for bid challenge.  The 
agreements with Chile and with Singapore cont ain a section on investment, under which each party 
undertakes to provide national treatment to investors from the other party, and the free transfer of payments.  The agreement with Chile also provi des for reciprocal exemption from anti-dumping 
investigations and measures.   
27. Norway has not been involved in any trade di spute under its free-trade agreements since its 
last TPR in 2000. 
28. Until 1 May 2004, under EFTA, Norway had bilatera l free-trade agreements (FTAs) in place 
with eight of the ten new EU members.
28  Since that date, trade with the EU (including its ten new 
members) has taken place under the EEA Agreement and the bilateral agreements between Norway 
and the European Communities.  
                                                      
22 WTO document WT/REG132/N/1. 
23 WTO document WT/REG133/N/1. 
24 WTO document WT/REG117/N/1. 
25 WTO documents WT/REG126/N/1 and S/C/N/166. 
26 WTO documents WT/REG148/N/1 and S/C/N/226. 
27 The agreement with Chile has not yet been notified to the WTO. 
28 The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic, and 
Slovenia. WT/TPR/S/138 Trade Policy Review 
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29. Negotiations for bilateral agreements are on- going between EFTA and Egypt, the members of 
the Southern African Customs Union, and Tunisia.  Since 2000, declarations of cooperation have been 
signed between the EFTA states and Algeria, the Co- operation Council for the Arab States of the Gulf 
(GCC), MERCOSUR, Serbia and Montenegro, and Ukraine.  These essentially establish a joint 
committee that acts as a forum for discussing means to enhance trade and investment opportunities. 
(b) European Economic Area (EEA) 
30. Norway has been a member of the EEA since 1 January 1994.  The EEA Agreement provides 
principally for four freedoms:  freedom of movement of goods (but trade in agriculture and fisheries has been liberalized only to a limited extent);  of  persons;  of services;  and of capital.  Related 
horizontal provisions in social policy, consumer pr otection, environment, company law, and statistics 
complete the extended internal market.  Further provi sions relate to competition, state aid, and public 
procurement. 
31. EEA rules correspond to the EC acquis communautaire  in all areas covered by the EEA 
Agreement.  The agreement gives non-EU EEA members the right to be consulted by the EU 
Commission during the formulation of EU legislation.  It also provide s for cooperation between the EU 
and the EEA EFTA states in a range of EU activities, including resear ch and technological development, 
information services, environment, education, social policy, consumer protection, small and medium-sized enterprises, tourism, the audio-visual sector, and civil protection.  Where the EEA EFTA states are admitted to participate in  these programmes, they make a contribut ion to their budgets, and take part in 
the committees that manage them, although without the right to vote. 
32. The EEA Agreement prevails over the free-trade  agreements between the EU and participating 
EFTA countries, although these, as  well as the Stockholm Conve ntion of 1960 among EFTA states, 
remain valid.  Since May 2004, the EEA Agreement has also covered trade with the ten new EU 
members and supersedes former agreements, through EFTA, with eight  of these countries 
(see section (a) above).   
33. 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 
representatives of social partne rs.  The EEA Joint Committee is  responsible for the effective 
implementation and operation of the ag reement, most notably the extension of new EU legislation in a 
timely manner.  Norway particip ates in the EU's single market  through the EEA Agreement, but 
maintains its own MFN and preferential trade arrangements.  Rules of origin under the EEA Agreement 
are linked to those under other European free-tra de agreements through a pan-European cumulation 
regime (Chapter III(2)(ii)). 
34. The EEA Agreement covers all trade in non-agri cultural and processed agricultural products, 
except casein, certain albumins, and dextrin, but does not cover basic agricultural or fishery products.  
However, it contains provisions on various aspects of  trade in basic agricultural and fishery products, 
most notably an evolutionary clause aimed at progr essive liberalization of agricultural trade.   
35. Norway applies EU legislation on, inter alia , technical barriers to trade, public procurement 
and purchases, and marketing conditions of state monopolies.  Anti-dumping and c ountervailing 
measures on products covered by the EEA Agreement may not be  applied to other EEA participants.  
Safeguard measures may be used, in a non-discrimina tory manner, in the event of "serious economic, 
societal or environmental difficulties of a sectoral or regional nature, liab le to persist", or in response to 
balance-of-payments problems.  Norway WT/TPR/S/138 
 Page 21 
 
 
36. The EFTA Surveillance Authority is responsible  for monitoring the implementation of the EEA 
Agreement and acts on its own initiative or upon compla ints, while the EFTA Court of Justice examines 
complaints with respect to co mpetition policy involving the EEA Ag reement, independently and in 
parallel with EU institutions.  The EFTA Surveill ance Authority has the authority to send to the 
Norwegian authorities Letters of Formal Notice and Reasoned Opinions regarding regulations and 
practices in Norway.  If issues are not resolved at this level, they are decided by the EFTA Court of Justice.   
37. Since its last TPR, Norway has been invo lved in six cases, always as the defendant: 
− Case E-4/03, brought by the EFTA Surveillan ce Authority, concerning compliance with 
Article 8 of Directive 98/34/EC on the provision of information in the field of standards and 
technical regulations.  Norway acknowledged its failure to notify its respective regulations.  
The Court found Norway to be in breach of its obligations (ruling of 5 May 2004); 
 
− Case 1/02, brought by the EFTA Surveillan ce Authority, regarding compliance with 
provisions of the EEA Agreement on equal treatment of men and women as regards access to employment by reserving certain academic positi ons for women.  The Court found Norway to 
be in breach of its obligati ons (ruling of 24 January 2003); 
 
− Case E-9/00, brought by the EFTA Surveillance Authority, regarding the sales regime for 
alcoholic beverages, under which domestically produced beer with a certain alcohol content 
could be sold outside the state monopoly, while  other alcoholic beverages, mainly imported 
from the EEA, had to be sold through the stat e monopoly;  and regarding the application of 
more restrictive licensing measures on the sale of beverages, mainly imported from the EEA, 
than on the sale of beer, mainly produced domes tically, with the same alcohol content.   The 
Court ruled (ruling of 15 March 2002) that the re gime did not comply with Article 16 of the 
EEA Agreement (requirement that state monopolies be adjusted to prevent discrimination in 
the procurement and marketing of goods), and with Article 11 of the EEA Agreement 
(prohibition of quantitative restrictions and measures having equivalent effect); 
 
− Case E-2/00, brought by Allied Colloids a nd Others, regarding whether a labelling 
requirement imposed by Norway was compatible with free movement of goods and directives 
on dangerous substances.  The Court ruled (ruli ng of 14 July 2000) that Norway was within 
its rights to impose the labelling requirement in question;  and 
 
− Case E-2/99, brought by the EFTA Surveillan ce Authority, concerning compliance with 
Directive 92/51/EEC on a second general system of recognition of professional education.  
The Court found Norway to be in breach of its obligations (ruling of 22 June 2000). 
 
38. In state-aid cases, the EFTA Surveillance Authority is obliged to monitor and secure 
compliance with the EEA rules on state aid.  National authorities are formally obliged to notify any new 
state aid scheme, or changes to existing aid schemes for approval before implementation.  If the EFTA 
Surveillance Authority has doubts as to  the compatibility of a state aid scheme with EEA legislation, it 
may either propose appropria te measures or open a fo rmal investigation.   
39. Since its last TPR, Norway has undertaken liberalization in the EEA context through 
negotiated commitments, and through the process of  transposing EC/EEA law into its national 
legislation.  Under Article 19 of the EEA Ag reement, Norway and the European Communities 
implemented new reciprocal trade commitments on cer tain agricultural products (Chapter IV(2)(ii)).  
The parties plan to resume negotiations on furthe r trade liberalization in agriculture in 2005. WT/TPR/S/138 Trade Policy Review 
Page 22 
 
 
40. Since its last TPR, the transposition of EC/EEA rules has entailed reforms in Norway in the 
following areas: 
− Government procurement:  in June 2001, Norw ay enacted new legislation applicable to 
contracts above set thresholds and ensuring equality of treatment for all EEA suppliers, service providers, and contractors (Chapter III(4)(iii)).  The new legislation is intended to 
ensure implementation of  a number of EU di rectives: the Public Procurement Directive 
(97/52/EC);  the Utilities Procurement Directive (98/4/EC);  the Supply, Service, Works and Utilities Procurement Directives (93/36/EC, 92/ 50/EEC, 93/37/EC, and 93/38/EC);  and the 
Remedies Directives (86/665/EEC, and 92/13/EEC)29; 
 
− Transport:  the EU's Gas Directive (98/30/EC)30, establishing common rules on the storage, 
transmission, supply and distribution of gas, came into force for Norway on 1 August 2002.  This entailed the dismantling of the centralized system of gas contracts managed by the Gas 
Negotiating Committee (Chapter IV(6)(i)(b));  
 
− Financial services:  rules governing the ownershi p of financial institutions were changed in 
2003, allowing Norwegian and EEA investors to hold more than 10% of the capital or votes 
of an institution, provided prior authorization is given (Chapter IV(8)(ii)).  Furthermore, 
Norway amended its legislation on investor compensation schemes in January 2004, in order 
to comply with the relevant EU directive (97/9/EC); 
 
− Mergers and acquisitions:  in June 2002, Norw ay repealed its Act on the Acquisition of 
Businesses.  The move was in part prompted by the fact that the authorization procedure 
required by the Act was considered by the EFTA  Surveillance Authority to infringe freedom 
of establishment and free movement of capital31; 
 
− State aid:  modified rules on state aid became effective in January 2003 to comply with EC 
Directive 80/723/EEC on the transparency of fi nancial relations between member states and 
public undertakings (Cha pter III(4)(iv))32;  and 
 
− Ship-building:  pursuant to EEA regulations regarding the ship-building industry, budgetary 
support for ship-building contracts was terminated as of 1 January 2001.  However, as in various other EEA countries, Norway implemented a temporary support scheme for ship-building in 2003 (Chapter III(4)(i)(f)). 
 
41. As at December 2003, Norway had notified fu ll implementation of 98.8% of EU/EEA 
directives.
33  Between January 2000 and December 2003,  the EFTA Surveillance Authority addressed 
90 letters of Formal Notice and 29 Reasoned Opinions pointing out cases where Norwegian 
legislation infringed EU/EEA legislation, on issu es such as public procurement and restrictions 
concerning the allocation of aquaculture licences.   
                                                      
29 EFTA Surveillance Authority (2002). 
30 Official Journal of the European Union , L 204, 21 July 1998.  
31 EFTA Surveillance Authority (2002).  
32 EFTA Surveillance Authority (2003) . 
33 EFTA Surveillance Authority (2004) . Norway WT/TPR/S/138 
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(iii) Generalized System of Preferences (GSP) 
42. Norway continues to run one of the most  wide-ranging GSP schemes among developed 
countries.  All products originating in least devel oped countries, have been given duty and quota free 
access to its market since 1 July 2002, without any transition period.34   
43. No substantial modification has been made to preferential treatment applying to other 
developing countries since the last revision of the scheme in 2000.35  Imports of industrial products 
from developing countries enter duty-free, with the ex ception of certain finished textiles and clothing 
products.  Duty-free treatment also applies to a range  of agricultural products, which, for the most 
part, are not in direct competition with Norwegian production.  Some of these preferences, notably on 
certain fruit and vegetables, are applied on a seas onal basis.  A number of agricultural imports – 
notably certain types of meat and milk, grain, f eeding stuffs, and certain vegetables and fruits – are 
considered sensitive and therefore subject to pr eferences varying from 10% to 50% of the applied 
MFN tariffs.  Certain milk products are exclude d from GSP treatment (Chapter III(2)(iii)(c)).   
 
                                                      
34 WTO document WT/COMTD/M/34, 26 September 2001.  This development has yet to be notified to 
the WTO.  
35 WTO document WT/COMTD/N6.Add.2, 15 January 2001. 