RESTRICTED
WORLD TRADE IMA/INV/5
21June1995
ORGANIZATION(95-1659)
International Bovine Meat Agreement
INTERNATIONAL MEAT COUNCIL
Inventory ofDomestic Policies andTrade Measures
Norway
Parties agreed to"provide information ontheirdomestic policies andtrademeasures including
bilateral andplurilateral commitments inthebovine meatsector, andshallnotify asearly aspossible
anychanges insuchpolicies andmeasures thatarelikely toaffect international trade inbovine meat
andliveanimals" (Article III:3). TheSecretariat "shall draw upandkeepuptodateaninventory of
allmeasures affecting trade inbovine meatandliveanimals, including commitments resulting from
bilateral, plurilateral andmultilateral negotiations" (Article III:4).
Thedocumentscontainingtherepliestothequestionnaireondomesticpoliciesandtrademeasures
arecirculated under theseries IMA/INV. They willberevised asandwhen changes arenotified.IMA/INV/5
Page2
INTERNATIONAL BOVINE MEAT AGREEMENT
Questionnaires GandH
Norway
PartG
PartG.1Information onDomestic Policies andTrade Measures
Background information
Twofactors areespecially relevant when analysing agricultural production inNorway: the
relatively lowlevel offoodself-sufficiency, andtheuseofagriculture asameans ofpreventing
population shifts away from rural areas.
Thedegree offoodself-sufficiency, measured interms ofenergy, amounts toabout 55percent.
Fishandfishproducts account foraround 5percentofthistotal. Asaresult ofthetopography and
harsh natural conditions, farmlandiswidely scattered andtheagricultural sector ischaracterized by
small farms. Arable landcovers onlyabout 3percentofNorway 'ssurface. Large andcontinuous
stretches oflandaretobefound inbutafewregions.
Therelationship between various product prices areofcentral importance toNorwegian
agricultural policy. Thisisparticularly thecaseforgrain andmilk. Therelationship between various
product prices areofcentral importance toNorwegian agricultural policy. Thisisparticularly the
caseforgrain andmilk. Prices offeedgrain andfeedconcentrates areregulated inorder toregulate
livestock production inlinewithdemand, aswellasstimulate domestic fodder production. Further,
inorder tokeepagricultural incomes atadesirable level, othermechanisms asidefrompricemechanisms
mustberelied upon. Therefore, asubstantial partofagricultural income issecured bywayofother
measures. These measures areforthemostpartdifferentiated according tothesizeoftheproduction
andlocalconditions.
Current overall guidelines forNorwegian agricultural policy werelaiddown bytheNorwegian
Parliament in1993. Thechief aimofthose guidelines istoassure asound agriculture partly by
encouraging competition andpartly byproviding assistance inthestarting-up ofnewactivities related
toagriculture. Yearly adjustments inthegeneral agriculture policy aremade intheAgricultural
Agreement between thefarmers associations andtheGovernment afternegotiations between theparties.
OneoftheGovernment 'schiefaimsistofurther reduce thetransfers made tothefarmers. Agovernment
proposal forlimited andadministered trade inmilk quotas wasputforward before thisyear's
negotiations, buthasbeendeferred to1996.
ThenewGATT/WTOAgreementisalsopartoftheoverallframeworkofNorwegianagricultural
policies. Itwasimplemented, byandlarge, on1January 1995andinvolves ashiftfromtheprevious
quantitative restrictions onimports toatariff based import regime. Theinternal support hastobe
reduced by20percentandthesubsidized export volumes by36percentoveraperiod ofsixyears.
There hasbeenalsochanges intrade relations between Norway anditspartners intrade since
theabove-mentioned guidelines wereadopted. Several ofNorway 'smostimportant trading partners
arenowmembers oftheEuropean Union asof1January 1995. Asaresult, Norway hashadto
renegotiate freetradeagreements within theframework oftheEuropean Economic Areaandthebilateral
agreements withtheEuropean Communities.IMA/INV/5
Page3
I. PRODUCTION
(a) Description ofthebeefindustry
From 1975to1982there wasasteady increase intheproduction ofbeefinNorway. During
thepast10years, production hasstabilized around 75,000 to85,000 tonsofbeefperyear. In1994,
Norway produced 86,665 tonsofbeefandveal, aslight increase compared to1993.
Almost allbeefproduction inNorway isbased onadualpurpose breed ofcattle (Norwegian
RedCattle). Thus, intheshort term, thepotential toincrease beefproduction islargely dependent
upon thenumber ofmilkcows, which hasbeenreduced forseveral years. Forseveral years, there
hasbeenanincrease inspecialized beefproduction. Itislikely tocontinue, whereas thetotalproduction
ofbeefisexpected toremain stable.
(b)and(c) Support andstabilization measures
Thefarmer-owned Norwegian Meat Cooperative isresponsible forimplementing market
regulations tomaintain prices atthelevels laiddown intheAgricultural Agreement. TheCooperative
undertakes market stabilization activities bymeans ofthesetting ofprices, theprovision ofstorage,
exports andimports (incooperation withprivate firms) andfinally salespromotion.
TheAgricultural Agreement setsaverage target prices atthewholesale level fordifferent
categories ofmeat. These prices formtheguideline forthemarket regulation activities oftheNorwegian
Meat Cooperative.
Abasedeficiency payment isgranted tomeatproduction. Thebasedeficiency payment for
beefin1994-1995 isNOK 3.35perkilo(nochange). Furthermore, regionally differentiated deficiency
payments arealsopaidformeatproduction incentral andnorthern parts ofNorway. Thissubsidy
isdifferentiated according tofourregions, therespective levels of1994-1995 areNOK 4.05, NOK 6.55,
NOK 10.20 andNOK 11.10 perkilo.
Within theframework oftheAgricultural Agreement, subsidies aregiven toreduce costs of
transportation ofcattle fromthefarmtotheslaughterhouse. Furthermore, freight subsidies aregiven
fortransport ofcarcasses ofbeef, from surplus regions todeficit regions.
II. INTERNAL PRICES AND CONSUMPTION
Thetarget price ofbeef, setbytheAgricultural Agreement for1994-1995, isNOK 34.51 for
Class 1beefandhigher classes, adecrease byNOK 2.40/kg.
In1994, percapita consumption ofbeefwas20.0kilos, ofmutton 5.79kilos, andofpigmeat
22.3kilos. Consumption ofbeefhasincreased during thepastfiveyears, ashastotalconsumption
percapita.
Beefandporkareexamples ofproducts withsomewhat larger demand elasticities thanmost
other agricultural products. Norwegian calculations indicate thatthedemand forbeefismore price
dependent thanthedemand forpork. Changes intheprice relations between these types ofmeatwill
haveaninfluence ondemand fortheonecompared totheother. Thecalculations imply thatchanges
intheprice ofporkhavelesseffect onconsumption ofbeefthanthereverse.
InNorway, thepercapita consumption offishishigh, andtheprice relationship between fish
andmeatisalsoimportant forchanges inmeatconsumption. Norway 'smoderate consumption ofmeatIMA/INV/5
Page4
mustbeseenrelative tothehighconsumption offishandfishproducts. Themeatconsumption level
mustalsobeviewed inlightofthefactthatNorwegians traditionally onlyconsume onewarm meal
aday. Adecrease inprice isexpected toprompt anincrease inmeatconsumption.
III. MEASURES ATTHE FRONTIER [Items (a),(b)and(c)]
Asaresult oftheAgreement onAgriculture completed intheUruguay Round, Norway has
replaced thenon-tariff import restrictions bytariffs. Thenewmaximum tariffs (base rateofduty)
forbeefandbeefproducts falling withtariff line02.01, 02.02, 02.06, 02.10 and16.02 wasfixed at
(advalorem) 405percent. Formeatproducts, ithasbeendecided toapply specific ratesofdutyfor
allproducts. Thefirstreduction oftheratescompared tothebound baserateofdutywasdoneper
1January 1995. Asof1July1995, Norway willapply year2000rateswhich forbeefandbeefproducts
varywithin theinterval ofNOK 14.66 perkilotoNOK 148.32 perkilo.
Customs tariffs asapplicable of1January 1995
Tariff ItemNo. Description Tariff
02.01 Meat ofbovine animals, fresh orchilled
1000 carcasses andhalf-carcasses NOK 37.02/kg.
2000 other cutswithbone-in boneless: NOK 76.17/kg.
3001 beefsteaks andfillets NOK 136.51/kg.
3009 boned orboneless NOK 136.51/kg.
02.02 Meat ofbovine animals, frozen
1000 carcasses andhalf-carcasses NOK 37.02/kg.
2000 other cutswithbone-in NOK 76.17/kg.
3000 boned orboneless NOK 136.51/kg.
02.06 Edible offalofbovine animals,
1000 ofbovine animals, fresh orchilled NOK 39.32/kg.
ofbovine animals, frozen:
2100 -tongues NOK 27.02/kg.
2200 -livers NOK 14.66/kg.
2900 -other NOK 30.91/kg.
02.10 Meat andedible offalsalted, inbrine, dried or
smoked; edible flours ofmeatormeatoffal
2000 meatofbovine animals
9000 other, incl.edible flours ofmeatoroffalmeat
16.02 Other preserved meat, meatoffalorblood
5000 Ofbovine animals NOK 148.32/kg.IMA/INV/5
Page5
Theformer banonimports ofcertain meat products pursuant totheActof22June1934
concerning bansonimports andaRoyal Decree of2June1960laying down provisions regarding import
bansonmeat andmeatoffalisabolished asthenewGATT/WTO Agreement entered intoforce on
1January 1995.
(d) Sanitary andveterinary regulations
Withtheentry intoforceoftheEEA-Agreement intheveterinary fieldby1July1994, sanitary
regulations relating totrade inbovine meatandmeatproducts havebeenharmonized. Norway has
adopted theEUAcquis inthisfield, withrather fewderogations. Thusnational provisions regarding
BSEareretained. Imports offreshbovine meatfromtheEEAissubject tomeatinspection, including
bacteriological control.
Imports ofbeeffrom thirdcountries mustasaminimum comply withtheEEA regulations.
Forthetimebeing, animportation permit isrequired.
PartH
PartH.Information onBilateral orPlurilateral Agreements
intheField ofBovine Animals, Meat andOffal
None.