ࡱ> @ bjbjFF ,,MR<<<L\\\4x<x<x<h<, =|,=X=p\>\>\>7?UE9GceeeeeeR>e\l7?7?lle\\\>\>znnnlL\\>\\>cnlcnn\\\\>= pGx<mw:0:(m(t\\\\(\-H T n]<e-H-H-Heed+n(+World Trade OrganizationRESTRICTED DOCPROPERTY "Symbol1" WT/TPR/G/138 13 September 2004 (04-3668)Trade Policy Review BodyOriginal: English TRADE POLICY REVIEW  DOCPROPERTY "Country"\* Upper NORWAY Report by the Government  Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the Government of  DOCPROPERTY "Country" Norway is attached.  ADVANCE \y 700  Note: This report is subject to restricted circulation and press embargo until the end of the meeting of the Trade Policy Review Body on DOCPROPERTY "Country"Norway. CONTENTS Page I. INtroduction: trade and economic policy 5 II. THE ECONOMIC ENVIRONMENT 5 (1) Economic Growth 5 (2) Government Finances 6 (3) Monetary Policy 6 (4) Structural Reforms: Keeping Norway Competitive 7 (i) Deregulating markets and cutting subsidies 7 (ii) Tax reform 8 (iii) Competition policy 8 (iv) State ownership 8 (v) Facts on Norways trade 9 III. TRADE POLICY OBJECTIVES AND DEVELOPMENT 9 (1) ϲʹ 9 (2) The European Economic Area (EEA) 12 (3) Free Trade Agreements 13 INtroduction: trade and economic policy As the value of Norways external trade corresponds to more than 75 per cent of its gross domestic product, Norways trade policy is an inseparable part of its economic policy. The Governments trade and economic policy is designed to promote sustainable economic growth and equitable distribution of the benefits of trade and economic growth to its population. In order to benefit from comparative advantages and economies of scale, Norwegian companies need to participate in markets extending beyond the domestic one. Moreover, Norways open economy exposes domestic producers of goods and services to an increasingly globalised environment, and one of the Governments key priorities is to strengthen the international competitiveness of Norwegian goods and service producers by ensuring that Norways business environment remains conducive to innovation, investment and growth. Sustainable development is a governing principle for the Norwegian Governments domestic and foreign policy, and it is committed to pursuing trade and environmental policies that are mutually supportive. Trade is not only essential to Norways economy, but is of key importance for global economic growth and political stability. Trade policy is therefore embedded in Norway's foreign policy, and Norway attaches great importance to integrating developing countries and particularly the least developed countries (LDCs) into the world economy. Norway pursues its trade liberalisation policy along three main tracks: multilateral trade liberalisation through the ϲʹ; regional liberalisation through the European Economic Area with its EFTA/EEA partners and the European Union; and bilateral free trade agreements in co-operation with its EFTA partners, Iceland, Liechtenstein and Switzerland. Norway sees regional trade arrangements and free trade agreements as being complementary to the multilateral regime by accommodating the need for deeper economic integration. Thus, Norway will continue to pursue regional and bilateral agreements, in conformity with Article XXIV of the GATT and Article V of the GATS, in order to expand trade and economic co-operation with its partners and safeguard Norwegian business opportunities. However, regional and bilateral agreements cannot replace the need for a strong, rules-based multilateral trade regime. Trade policy has increasingly become a topic for political debate in the public domain in Norway. In addition to the traditional debate on the economic merits of trade, increasing emphasis is being put on such aspects as health, environment, food and consumer safety. To ensure the continued support of the general public for the multilateral trading system of the ϲʹ, the Government consults extensively at the national level with non-governmental groups, including representatives of trade and industry, labour, consumer and other interested organisations. Norwegian trade policy enjoys broad political support in the Storting (the Norwegian parliament). Chapter II of this report gives a brief description of the Norwegian economic environment, and in Chapter III, the Government sets out the broad lines of Norways trade policy and itsdevelopment since the last Trade Policy Review in 2000. THE ECONOMIC ENVIRONMENT (1) Economic Growth Following moderate to slow economic growth in 2000-2002, the growth rate has picked up throughout the second half of 2003, and the Norwegian mainland GDP is expected to increase by more than 3 per cent from 2003 to 2004. The main growth impetus is private consumption, fuelled by low interest rates and high real wage growth. Inflation is being restrained by the appreciation of the Norwegian krone in 2002, the fall in prices for imported consumer goods, measured in foreign currency, and strong competition in many industries in Norway. The buoyant growth of the 1990s resulted in pressures in the Norwegian economy, and several sectors had problems finding qualified labour. Wage inflation surged to more than 6 per cent in 1998. Since 1998 unemployment has increased, and wage growth decreased from 5.7 per cent in 2002 to 4.5per cent in 2003. It is expected to decrease further in 2004. The Government has co-operated with the trade unions and the employer organisations in order to promote moderate wage growth and thereby secure the basis for low unemployment and high participation rates. The unemployment rate was 3.7 per cent as of 1 July 2004, a moderate reduction from last year. Government Finances General government finances are very sound. The general government balance showed a surplus (net lending) of 9.2 per cent of GDP in 2002 and 8.3 per cent in 2003, primarily due to revenues from the petroleum sector. In the Revised National Budget for 2004, the surplus for the year 2004 is expected to be 6.9 per cent of GDP. General government net assets are estimated at NOK1320 billion or 81 per cent of GDP at the end of 2004. Net revenues from the petroleum sector are transferred to the Petroleum Fund, which is the government's instrument for transferring wealth from oil and gas reserves to a broad-based portfolio of international securities. The Petroleum Fund has two main purposes: it provides a buffer against fluctuating revenues from the petroleum sector, and it helps to maintain a balance by distributing the petroleum wealth across generations. Although Norway's petroleum wealth is being depleted, the return on the invested capital will benefit many future generations. The market value of the Government Petroleum Fund is estimated to reach NOK1016 billion by the end of 2004, up from NOK 220 billion at the end of 1999. In accordance with the guidelines set out in a white paper on economic policy (Report No. 29 (2000-2001) to the Storting), fiscal policy is geared towards a gradual and sustainable increase in the use of petroleum revenues. Over time, the structural, non-oil budget deficit is to correspond to the real return on the Petroleum Fund, which is estimated at 4 per cent. This rule is not applied automatically, and the actual implementation takes into account business cycle fluctuations around the medium term growth path. Monetary Policy The white paper on economic policy also set out new guidelines that formed the basis for new regulations on monetary policy. The regulations lay down that Norways monetary policy shall be aimed at stability in the Norwegian krones domestic and international value. The implementation of monetary policy shall be oriented towards low and stable inflation, defined as annual consumer price inflation that remains close to 2.5 per cent over time. Monetary policy shall also contribute to stable developments in output and employment, and to stable expectations concerning exchange rate developments. As a general rule, it is expected that consumer price increases will fall within an interval of +/ 1 percentage point from the inflation target. Furthermore, the interest rate decisions of Norges Bank (the central bank of Norway) shall be forward-looking, and pay due heed to the uncertainty associated with macroeconomic estimates and assessments. It shall take into consideration that it may take time for policy changes to take effect, and it should disregard disturbances of a temporary nature that are not deemed to affect underlying price and cost increases. The long-term role of monetary policy is to provide the economy with a nominal anchor. Over time, low and stable inflation is an important prerequisite for growth and welfare. The regulations stipulate a flexible inflation target for monetary policy. In the short and medium term, monetary policy must balance the need for low and stable inflation, on the one hand, against the need for output and employment stability, on the other. In June 2004, the Norwegian 3-month interbank rate (NIBOR) was 2.0 per cent, on a level with the euro interbank rate. The yield on Norwegian 10-year government bonds was 4.6 per cent, which was 0.5 per cent higher than the yield on German 10-year government bonds (Bunds). Structural Reforms: Keeping Norway Competitive A large number of structural reforms have been implemented in Norway over the last two decades. The main objectives of these reforms have been to improve the efficiency of financial and product markets and to increase user-orientation and efficiency in the production of public services. Competition has been enhanced through liberalisation of markets and modernisation of the regulatory framework. Privatisation has been pursued gradually and on a pragmatic basis. Generally, co-operation within the context of the European Economic Area (EEA) Agreement has promoted reviews and reforms of a number of regulations. Deregulating markets and cutting subsidies Product markets have been liberalised to a large extent, and new legislation has been introduced for example for various network services. The Energy Act of 1990 deregulated the electricity market in one step. Electricity generation, supply and trade are based on competition, while transmission and distribution are regulated monopolies. Nord Pool was established in 1993 as a commodity exchange in the Norwegian electricity market, and was extended in 1996 with the incorporation of Sweden, and later Finland and Denmark. Telecom markets were deregulated gradually, with the last exclusive rights of the former monopoly supplier abolished on 1 January 1998. Restrictions on entry into air traffic markets were lifted in the early 1990s. With the opening of Oslo Airport Gardermoen in October 1998, limited slot capacity is no longer a hindrance for establishing competing air transport services. Market-based instruments have been established as an alternative to regulation. A CO2 tax was introduced in 1991, and the Government intends to introduce an emission allowance trading scheme for CO2 emissions from 2005. Fishing quotas have been made transferable (within vessel groups) when a vessel is permanently withdrawn from the fishing fleet (this is known as the unit quota system). Unit quotas apply to the ocean-going fishing fleet. In 2004, similar schemes have been introduced in most coastal fisheries (the structural quota system ), and trials with periodic exchange of quotas between operational coastal vessels (the quota exchange system) have been initiated. The reforms started with deregulation of currency, financial and housing markets in the 1980s. Budgetary support for industries was reduced through the 1990s, and nearly eliminated for state-owned corporations and in the fishery sector. Total allocations to industry amounted to 2.7 per cent of GDP in 1992, and 1.2 per cent in 2002. During the period from 1992 to 2002, support to agriculture has been reduced by 20 per cent in real terms. Budgetary subsidies to farmers have shifted from price support to support with less impact on production. In 1990 price support accounted for 30 per cent of total direct support, while the corresponding figure for 2002 was 16 per cent a reduction of 46 per cent. The level of assistance to the agricultural sector has remained high by international standards in order to promote small-scale farming in all parts of the country, and to address non-trade concerns. Agriculture received 70 per cent of total budgetary support to the private sector in 2002. Remaining budgetary support is mainly of a horizontal nature, such as subsidies to R&D and remote regions. (Any tax concessions are not included in these figures.) Tax reform Corporate profits are taxed at a rate of 28 per cent, as is the total tax on received dividends as shareholders benefit from a full imputation system. Due to Norways dual income system, with a flat 28 per cent tax rate on capital income and progressive taxation of labour income, a need to bridge the gap between the taxation of individuals and companies has persisted. The highest marginal tax rate on labour incomes has increased during the last decade, and is currently 64.7 per cent (including employers social security contributions). In March 2004, the Government presented a white paper on tax reform with proposals to cut taxes in the region of NOK 12 billion over the period 20052007. The proposals included a reduction of the tax on labour income, taxation of dividends and capital gains exceeding a risk-free return on the personal shareholders hand (the shareholder model), gradual abolition of the net wealth tax, and repeal of the tax on imputed rent from housing. The proposed reduction of the marginal tax rate on labour income combined with a tax on dividends and gains will make the taxpayer broadly indifferent (on the margin) as to whether income from work is received in the form of wages or ownership income. The Storting decided in June 2004 that the new model for taxation of share incomes was to be implemented from 2006. This autumn, the Government will propose tax exemption on dividends and gains derived by companies as from 26 March 2004 (the publishing date of the white paper on tax reform). Combined with the shareholder model, dividends and gains will be taxed upon withdrawal from the corporate sector, and only to the extent that such incomes exceed a risk-free return. The Government intends to reduce the marginal tax rates on labour income gradually from 2005 and 2006, preparing the ground for the shareholder model. (iii) Competition policy A new Competition Act entered into force on 1 May 2004, strengthening the framework for competition policy established by the 1993 Competition Act. The new Act prohibits the abuse of dominance and agreements that restrict or distort competition, and introduces a general obligation to report mergers and acquisitions. Moreover, the Norwegian Competition Authority has been empowered to impose large fines on companies that violate prohibitions and to reduce fines to enterprises that contribute to the investigation of suspected violations. (iv) State ownership The participation of the Norwegian state in the economy is still extensive. It is estimated that the state controlled some 41 per cent of the Oslo Stock Exchange capitalisation in January 2004. It is government policy to privatise when there is no valid reason to maintain an enterprise in the public sector. Privatisation must be handled in a way that maintains share values and at the same time contributes to positive developments for the companies in question. Decisions to privatise are thus taken on a case-by-case basis. State ownership has also undergone a number of structural and legislative reforms since 2000. The Norwegian Government has during the last years organised the management of its ownership interests in such a way as to keep the role as owner separate from the roles as policymaker, regulator, supervisor, etc. The Ministry of Trade and Industry has therefore been charged with the task of managing ownership in most state-owned enterprises, while regulatory responsibility remains vested in the various ministries. As a principal rule, state ownership of commercial activities is organised as limited liability companies. Remaining state-owned enterprises no longer benefit from state liability for loans incurred after 1 January 2003. State guarantees apply only to older loans until expiry, and a market-based commission is required. This means that state-owned enterprises can now go into bankruptcy. State ownership remains extensive in the energy, transport and telecommunication sectors. Telenor ASA, the incumbent telecom operator, was partly privatised in December 2000. After subsequent sell-offs the state now holds 53.1 per cent. Statoil ASA, a major company in the petroleum sector, has been partly privatised since June 2001. As of 1 August 2004, the state interest in Statoil stands at 76.3 per cent. The largest electricity generator, Statkraft SF, is wholly state-owned. The banking crisis in the late 1980s and early 1990s resulted in state take-over of major commercial banks. These banks have later been privatised with the exception of the largest bank, DnB NOR ASA, where state ownership currently stands at 33.7 per cent. (v) Facts on Norways trade Although Norway has a diversified economy, its dependency on natural resources is clear. Norway is the third largest oil exporter in the world and the petroleum sector (oil and gas) provides approximately 45 per cent of Norways total export revenues. Norway is also one of the worlds largest exporters of fish and fish products, which account for 5 per cent of export revenues. Other commodities (machinery, ships, metals, chemicals, pulp and paper, etc.) accounted for approximately 25 per cent of Norways total export revenues, while the service sector accounted for about 25percent in 2002, nearly half of which came from international shipping. The EU remains Norways dominant trading partner, although the relative share of trade with the EU has fallen somewhat since 2000. In 2003, the EU-15 received about 76 per cent of all Norwegian merchandise exports and provided approximately 67 per cent of all merchandise imports. The comparable figures for the 10 new EU member states are 2 per cent and 4 per cent respectively, and for North America 13 per cent and 8 per cent, while the figures for developing countries as a whole are approximately 6 per cent and 13 per cent, largely attributed to trade with Asian countries. TRADE POLICY OBJECTIVES AND DEVELOPMENT (1) ϲʹ Norway remains strongly committed to the ϲʹ and the Doha Development Agenda Norway was one of the founding members of the GATT in 1947 and remains strongly committed to the multilateral trade framework under the auspices of the ϲʹ. The strong, rules-based system is the best guarantee against unilateralism and protectionism, and provides, stability, security, transparency, and predictability for traders. Norway firmly believes that all members stand to gain significantly from further trade policy negotiations aimed at strengthening the multilateral trading system and improved market access for goods and services. Economic growth and development in all nations and particularly in developing countries depends on a strong and fair multilateral trading system. Norway is therefore strongly committed to the Doha Development Agenda (DDA). World trade must benefit developing countries Norwegian trade policy towards developing countries plays a central role in the formulation of Norwegian foreign and development co-operation policy. Norway will continue to promote improvements to the multilateral trading system and encourage greater integration of the developing countries, especially the LDCs, by means of improved market access, transitional arrangements, technical and financial support and other measures. Since the launch of the Doha Development Agenda in 2001, Norway has contributed approximately CHF 4 million to the ϲʹϒs programmes for technical assistance (DDA Global Trust Fund). However, Norway continues to advocate that the ϲʹ programmes in this field be financed over the organisations regular budget, rather than mainly by voluntary contributions to a global trust fund. Norway has also taken a number of unilateral steps to promote trade with developing countries by implementing improvements to its Generalised System of Preferences (GSP). To this end, Norway unilaterally abolished tariffs and quotas on all products from LDCs on 1 July 2002. Although a special safeguard mechanism remains in place for certain products, safeguard measures have never been imposed on these products. Trade in Services In the present negotiations, Norway is looking for real liberalisation in trade in services over a broad range of sectors, including maritime transport and related services; telecommunication services; financial services; environmental services; and energy and offshore-related services. Norway believes that the scheduling of high quality commitments to market access in the services sector will benefit all members by providing the predictability and stability needed for a substantial increase in the volume and quality of trade in services as well as in foreign direct investment. As one of the worlds major suppliers of maritime transport services, Norway is particularly concerned that major trading nations have not undertaken market access and national treatment commitments in this sector. Ships account for about 90 per cent of international goods transport, and committing to liberalisation in this sector would be a means of lowering trade costs to the benefit of all countries. It is cause for some concern that negotiations on the fairly liberalised maritime transport services sector have not been more successful thus far. Trade in industrial products Lowering tariffs on industrial products has been the main focus of trade negotiations since the establishment of the GATT. However, the job remains unfinished, with significant tariffs still in place. Norways ambition is to see the elimination of all tariffs on industrial goods, including fish and fish products. As one of the largest exporters of seafood in the world, exporting seafood to more than 150 countries, Norway attaches particular importance to substantial reductions in bound tariffs for industrial goods, including fish and fish products. In order to achieve real improvement in market access, non-tariff measures must also be addressed. Trade facilitation In addition to reducing and eliminating tariffs and non-tariff measures, Norway is in favour of starting negotiations on common rules for trade facilitation. Norway believes that measures to facilitate trade, such as simplified procedures for border control and reducing delays in cross-border movement of goods, will increase the economic benefits of trade to all members Trade in agricultural products Small production units, a short growing season and difficult topographic and climatic conditions characterise Norwegian agriculture. In the ongoing agricultural negotiations, Norway has therefore argued that countries should be granted flexibility in national policy design in order to maintain agricultural production. For countries like Norway, maintaining agricultural production is a means of addressing important non-trade concerns such as rural settlements, the environment and food security. Non-trade concerns are also part and parcel of the Doha mandate. Norway recognises that improved market access is a key element of the agricultural reform process. Many agricultural products imported to Norway are subject to no or very low tariffs. Because production conditions are unfavourable in Norway, only a few product groups are produced domestically. Such products are generally subject to high tariffs. A tariff reduction formula must take into account the need for flexibility for sensitive products. Norway accepts that the Doha round will lead to substantial reductions of trade-distorting domestic support and set an end date for the elimination of export subsidies. In recent years, Norway has facilitated market access for agricultural products from developing countries, in particular from the LDCs. Under its Generalised System of Preferences, Norway grants duty- and quota-free market access for all agricultural products from the LDCs. For other developing countries, tariff preferences ranging from 100 per cent to 10 per cent are granted for imports of all products except milk and dairy products, and live animals. TRIPS The TRIPS Agreement represents a significant step towards safeguarding patents and other intellectual property rights. A well-functioning patent system is of vital importance to innovation, trade and economic growth. Norway has experienced that the patent system has demonstrated an ability to adapt to shifting needs for the protection of technology in new areas. Without the security of respect for their rights, owners of intellectual rights would be reluctant to agree to the introduction of products and services to new markets. It is therefore of great importance to both exporting and importing countries that the obligations under the TRIPS Agreement are fully implemented. Norway has been actively involved in efforts to ensure that the TRIPS Agreement is supportive of measures to protect public health. In particular, patent protection should not prevent access to essential drugs against major threats to public health such as HIV/AIDS and malaria. The Declaration on TRIPS and Public Health in Doha in 2001 provided much-needed clarification in this respect. Moreover, Norway strongly supported the decision by the General Council of 30August2003 waiving restrictions on exports on the basis of compulsory licences for pharmaceutical products. Norway was also the first country to implement the decision in domestic law. Anti-dumping and other rules on trade remedies Although the Uruguay Round succeeded in allaying many of Norway's concerns regarding trade rules, there is still a need for further improvement in future rule-making, in particular on antidumping. Norway has noted an increasing tendency to resort to anti-dumping and other trade remedies, as shown by the rise in the number of actions and in the number of countries applying them. Norway is concerned about this development, which poses a challenge to the multilateral trading system. Some ϲʹ rules, for example provisions regarding anti-dumping, lack clarity. Norway generally advocates clear provisions that narrow the scope for national discretion. In this connection, Norway would welcome discussions regarding the limitations under the Anti-dumping Agreement in respect of the Dispute Settlement Understanding. Norway follows a cautious policy as regards the application of trade remedy instruments. No safeguard, anti-dumping or countervailing measures or investigations have been applied or initiated during the past ten years. The Agreement on Subsidies and Countervailing Measures provides important discipline regarding subsidies. Norway believes that the Agreements structure regarding both prohibited and non-actionable subsidies should be maintained. Norway particularly supports the elimination of subsidies in the fisheries sector that lead to over-capacity and the depletion of fish stocks. Dispute Settlement The Dispute Settlement Mechanism has proved to be one of the most valuable aspects of the ϲʹ, providing developing and developed countries, small and large, with access to a procedure for legally binding settlement of disputes. Since 2000, Norway has been a complainant in one case and a third party in five cases. Norway has noted with satisfaction that developing country members are increasingly using the mechanism to solve their disputes with other members. Norway has fully implemented the Agreement on Textiles and Clothing Norway has fully implemented the Agreement on Textiles and Clothing. On 1 January 2001, Norway abolished the three remaining quantitative restrictions (fishing nets) of a total of 54quantitative restrictions in application when the Agreement entered into force in 1995. (2) The European Economic Area (EEA) The Agreement on the European Economic Area (EEA) extends the internal market of the 25EU Member States to three European Free Trade Association (EFTA) countries: Norway, Iceland and Liechtenstein. The EEA Agreement covers the free movement of goods, persons, capital and services (the four freedoms). As it is one of the primary obligations of the Agreement to ensure equal conditions of competition, the substantive competition rules of the Agreement correspond to the relevant acquis communautaire. This covers the rules concerning cartels, abuse of dominant positions, merger control, state monopolies and state aid, as well as public procurement. The Agreement also includes areas that have an impact on the competitive position of enterprises, such as consumer protection, environment, social policy (including health and safety at work, labour law and equal treatment of men and women), statistics and certain elements of company law. Other fields of co-operation include culture, education, information services, and small and medium-sized enterprises. The scope of the EEA Agreement does not include the EUs Common Agricultural Policy or the Common Fisheries Policy, but it contains provisions on various aspects of trade in agricultural and fish products. As the EEA Agreement is not a customs union, trade policy towards third countries is also outside its scope. A key feature of the EEA Agreement, which distinguishes it from most other free trade agreements, is its dynamic character. Its common rules are continuously updated by adding new EU legislation. This aspect is essential given the large output of Community legislation on the internal market. Each month, a number of EEA-relevant pieces of legislation are incorporated into the Agreement by decisions of the EEA Joint Committee. The Agreement provides for information and consultation procedures at all stages of the Communitys decision-making process. The EFTA-EEA states may ask for consultations on matters of concern, and may also seek adaptations to Community legislation in its application to the EFTA countries when special circumstances call for this. Since the Agreement entered into force, more than 4000 EC legal acts have been incorporated into it. Important new legislation regarding veterinary and phytosanitary matters has for example been incorporated into Annex I. (3) Free Trade Agreements Since the early 1990s, Norway and its other partners in the European Free Trade Association (EFTA) Iceland, Liechtenstein and Switzerland have established an extensive network of contractual free trade relations in Central and Eastern Europe as well as in the Mediterranean region. Free trade agreements with Mexico and Chile have extended this network across the Atlantic, and the free trade agreement with Singapore is the first between European countries and an Asian country. Since 2000, Norway has signed free trade agreements with Chile, Croatia, Jordan, Lebanon, Macedonia, Mexico, and Singapore. At present, the EFTA network consists of thirteen free trade agreements and eight declarations on co-operation. Several agreements are currently under negotiation, including some with countries in the Middle East and Africa. It is the goal of EFTA third-country policy to safeguard the economic interests of the EFTA States by complementing interregional European trade co-operation and the ϲʹ regimes and negotiations. EFTA's free trade agreements cover free trade in industrial products, fish and marine products and processed agricultural products. In addition, each EFTA country has concluded bilateral agricultural protocols with each of the third country partners. The bilateral agricultural protocols are an integral part of EFTA's multilateral agreements. The free trade agreements incorporate provisions on a number of new trade issues, including rules of competition, state aid and protection of intellectual property. The scope of the agreements has been expanded during the last four years to include services, investments and public procurement, as the parties recognise the growing importance of these areas. Other agreements contain evolutionary provisions on these areas with the aim of achieving gradual liberalisation and mutual opening of markets for investments and trade in services, taking into account developments in European integration and the ϲʹ. Many of the EFTA free trade agreements have been drawn up in a way that takes into account the different level of economic development in the partner countries by providing for an asymmetrical approach. The EFTA States are required to abolish barriers to trade at the outset, while the partner countries can, for certain sensitive products, phase them out during a transitional period, leaving them the necessary time to adapt their economy to free trade conditions. Norway also takes part in the pan-European system of cumulation of origin, which will gradually be extended to the entire Euro-Mediterranean area. This represents a major step in facilitating preferential trade with originating products. __________  From 1 May 2004, the enlarged EEA Agreement replaced the FTAs with Estonia, the Czech Republic, Latvia, Lithuania, Poland, Slovakia, Slovenia, and Hungary following these countries accession to the EU.  This has been done for the EFTA free trade agreements with Singapore, signed on 26 June 2002, and Chile, signed on 26 June 2003. WT/TPR/G/xx Trade Policy Review Page  PAGE i Norway WT/TPR/G/xx Page  PAGE i WT/TPR/G/xx Trade Policy Review Page  PAGE 2 Norway WT/TPR/G/138 Page  PAGE 3 WT/TPR/G/138 Trade Policy Review Page  PAGE 12 Norway WT/TPR/G/138 Page  PAGE 13 $()*ABKLNOP\abeghimosq }  ƿƟƐƐƟh4+ho!5CJjh>]U h>]h4Vjh>]ho!Uh K ho!5 h KCJ ho!CJ h>]ho!h>]hVA h~5 hVA5 h>]5jh>]5U ho!:CJ,ho! ho!>*ho!5:CJ,3 $%&'()HJkdo$$Ifl40+p# E 4 lazf4$d$Ifa$Hkd$$Ifl40+p#`E 4 lazf4 $$Ifa$ $dh$Ifa$M)PbcdeopqrgEkdQ$$Ifl0+p#E 4 lazHkd$$Ifl40+p# E 4 lazf4 $$Ifa$ rs[YYYYYYEkd+$$Ifl0+p#E 4 laz $ @$Ifa$ $$Ifa$Gkd$$Ifl`0+p#E 4 laz      $Ifikd$$Ifl  04 laQp F$If^  % @ W {{{ > p"gd[w> p"`gd4+ = p"gd[w$a$gd[w $a$gd CGBkd/$$Ifl  4 laQp      $ % ( ) * ? @ C D E V W Z [ \ % & O P S T U s t u v w x ) H <ͿݯݯݯݯݯݯݯݯͿݯݯݿݯݯݿݯݨhOPHh'oVhMD h>]ho! h4+h4+h4+h[w:CJmHnHuh4+h4+CJmHnHuh4+h[w;CJmHnHuh4+h[wCJmHnHuh4+ho!6CJh4+h C6CJ9  ! P t Q[( gd'oV & FZgdMDgd4+> pU"`gd4+ > p"gd[w = p"gd[w? p"p^pgd4+<\o{""%%%c+d+w,,,,,,,,,,,22FAMACCLL^N~NNN6Q:QWQQcmmmmvv3w7wXwww;yOyӁԁ=>@Ah\jhMD0JUhNhMD6hW#B h\hMDh:Jh"h#x h) hMDhr>h= h=hMDh!+hMDhNEo#%%)e+w,,/gdr> & F]gdMDgd=gd=gd=gd'oV & Fgd!+ & FZgdMDCCE0IL6LNQ6QWQQRTTXYY\3^P^``nbgd'oVgd\ & Fgd:J & F^gdMDgdW#Bgd#x & Fgd#xgdr> & Fgdr>nbbd/ghik?nnn4oqrs tu#v3wXw{|}Q@gdW#B & Fgd:Jgd\gd'oVgdW#B@ALMόЌьҌӌ}xxgdMDdkd$$IflD#$04 lap $IfgdMDgdMD$a$gd\gd\ ALMNČŌˌ̌͌ΌόЌҌӌ !'()*+,./?BIJPQRSTUWXad~ڻڻϲڻϲڻϲڻϲh KmHnHuhMDh%5hMDh%mHnHujhMDh%U hMDh%h Kh%jh%0JU h\ho! h\5F+ $IfgdMDgdMDdkd*$$IflD#$04 lap +,-./T $IfgdMD %dOgdMDdkd$$IflD#$04 lap TUVWX $IfgdMDgdMDdkdF$$IflD#$04 lap  $IfgdMDgdMDdkd$$IflD#1$04 lap gd\gdMDdkdb$$IflD#1$04 lap  h\ho!h Kh% hMDh%hMDh%5. 00&P . A!"#n$%n+ 0&P . A!"#n$%n1 0&P :pMD. A!"#n$%nm$$Ifz!vh55E #v#vE :V l4+55E 4azf4q$$Ifz!vh55E #v#vE :V l4+55E 4azf4m$$Ifz!vh55E #v#vE :V l4+55E 4azf4p$$Ifz!vh55E #v#vE :V l55E / 4azf$$Ifz!vh55E #v#vE :V l`55E 4azb$$Ifz!vh55E #v#vE :V l55E 4az$$IfQ!vh5#v:V l  054aQp k$$IfQ!vh5#v:V l  54aQp $$If!vh5$#v$:V lD0,5$4p $$If!vh5$#v$:V lD0,5$4p $$If!vh5$#v$:V lD0,5$4p $$If!vh5$#v$:V lD0,5$4p $$If!vh51$#v1$:V lD0,51$4p $$If!vh51$#v1$:V lD0,51$4p OJ@J Normal$ a$CJ_HmH sH tH ^@"^ Heading 1+$ & FG 0@&^`05;^@2^ Heading 2+$ & FH 0@&^`05:Z@BZ r> Heading 3*$ & FI 0@&^`05X@RX Heading 4+$ & FJ 0@&^`0@@@ Heading 5 & FK@&66@6 Heading 6 @&6@6 Heading 7 @&DA@D Default Paragraph FontVi@V  Table Normal :V 44 la (k(No List BB@B Body Text & FD DT@D Block Text]^FP@F Body Text 2 & FE FQ@"F Body Text 3 & FF ^M@2^ Body Text First Indent & F `HC@BH Body Text Indent^TN@ART Body Text First Indent 2 `RR@bR Body Text Indent 2d^PS@rP Body Text Indent 3^CJ>+>  Endnote Text htH uh$@h Envelope Address!@ &+D/^@ CJOJQJ@V@@ FollowedHyperlink>*B* 4 @4 Footer  !@&@@ Footnote ReferenceH*B@B  Footnote Text `CJ@@@ Header$ "a$5CJ0U@0 Hyperlink>*B*: : Index 1 #^`#6!6  Index Heading!4/@"4 List"0^`082@28 List 2#0^`083@B8 List 3$^`84@R8 List 4%p0^p`085@b8 List 5&^`:0@r: List Bullet ' & FLT6@T List Bullet 2 ( & FM 0^`0X7@X List Bullet 3#) & FN @^`X8@X List Bullet 4#* & FO p0^p`0X9@X List Bullet 5#+ & FP ^`BD@B List Continue,^NE@N List Continue 2-^`FF@F List Continue 3.^NG@N List Continue 4/^`NH@N List Continue 50p0^p`0@1@@ List Number1 & FQ hT:@"T List Number 2 2 & FR 0^`0T;@2T List Number 3 3 & FS ^`T<@BT List Number 4 4 & FT p0^p`0T=@RT List Number 5 5 & FU ^`.)@a. Page Number<Z@r< Plain Text7 CJOJQJ6J@6 Subtitle 8$@&a$D,D Table of Authorities9D#D Table of Figures : 6>@6 Title;$a$ 5;KH6.6  TOA Heading<5T@T TOC 1,=$ p# 0]^`0a$;T@T TOC 2,>$ p# 0x]^`0a$:P@P TOC 3+?$ p#@J0]^`0a$LL TOC 4(@$ p# p0]^p`0a$PP TOC 5+A$ (p# 0]^`0a$HH TOC 6 B$ p# o]^oa$CJHH TOC 7 C$ p# L]^La$CJHH TOC 8 D$ p# )]^)a$CJHH TOC 9 E$ p# ]^a$CJPObP TPR1st page titleF$a$ 5CJ$KH$DOrD Tpr-Note 1st pageG&d@Y@  Document MapH-D OJQJ4O4 Title 2I$a$>*4O4 Title 3J$a$6@O@ Title CountryK$a$;>'> MDComment ReferenceCJBB MD Comment TextM$a$CJtH H@H  K Balloon TextNCJOJQJ^JaJy=QT 0 ] $%&'()Pbcdeopqrs %@W!PtQ[( o!e#w$$'<'*d-114G9`9;;=0AD6DFI6IWIIJLLPQQT3VPVXXnZZ\/_`ac?fnf4gijk lm#n3oXostxx{|}Q@ALMτЄф҄ӄ+,-./TUVWX00 0 0 0 0 0 0 000 0 0 00 0 0 0 0 0 0 000000F0F0F0F0F0F0F0 0 0000F0 0 G00000=0=0>0>0>0>0?0?0?0?0?0=0>0>00>000000Z 0D 0D 0D 0D 0D 0D 0D 0Z 00D 0D 0H 0D 0 ooD 0 ooH 0D 0 D 0 D 0 H 0D 0w$w$(] 0w$D 0w$'D 0w$'D 0w$'(] 0w$D 0w$1D 0w$1(0w$D 0w$G9(0w$D 0w$;D 0w$;D 0w$;(0w$D 0w$DD 0w$D^ 00IHK 0w$6ID 0WIWID 0WIWIHK 0w$6ID 0LLD 0LLHK 0w$6ID 0QQD 0QQHK 0w$6ID 0 3V3VHK 0w$6ID 0!XXHK 0w$6ID 0"nZnZD 0#nZnZD 0$nZnZHK 0w$6ID 0%``D 0&``HK 0w$6ID 0'?f?fD 0(?f?fD 0)?f?fD 0*?f?fHK 0 w$6ID 0+kkHK 0 w$6ID 0,mm0ID 0-m3oD 0.m3oD 0/m3o0ID 00mxD 01mxD 02mxD 03mxD 04mx0000@0x@00h@0 @0 @0@0@0@0 @0 @0@0@0@0x @0| @0@0@0@0 @0 @0@0@0@0 @0 @0@0@0@0 @0 @0@0@000h $%&'()Pbcdeopqrs Q[( o!e#w$$'<'*d-114G9`9;;=D6DI6IWIIJLLPQQT3VPVXXnZZ\/_`ac?fnf4gijk lm#n3oXostxx{|}Q@M00 0 0  0 0 0  0 000 0 0 0 0 0 0 0 0 0 0 000000F0F0F0F0F0F0F0 0 0000F0 0 G0000000 Z 0D 0 D 0 D 0 D 0 D 0 D 0 D 0  Z 0H 0D 0D 0H 0D 0 D 0 H 0D 0 XXD 0 XXD 0 XXH 0D 0""*] 0"D 0"[%D 0"[%D 0"[%*] 0"D 0">0D 0">0*0"D 0"7*0"D 0"9[ 09*] 0"D 0"kB ^ 0H 0\GJK 0GGD 0GGD 0GGJK 0GGD 0JJD 0JJJK 0GGD 0OOD 0OOJK 0GGD 0}T}TJK 0GG0D 0.W.W0D 0 .W.WD 0!.W.W[ 0#cG[ 0$cGD 0cG[ 0%cG[ 0&cGD 0 cG[ 0'cG[ 0(cG[ 0)cG[ 0*cGD 0 cG[ 0+cGD 0 cGD 0 cGY 0;G[ 0-^m[ 0.^m[ 0/^mY 0;G[ 00v[ 01v[ 02v[ 03v[ 04v 0(@0@0 0h@0^~00H$`w@0 0Hh4\\\\\ <AGNPU[)r Cnb@+THJKLMOQRSTVWXYZI)AKUUTUTUT%,.MTV !!!!!!8@0(  B S  ?< _Toc77430077 _Toc77430207 _Toc79306449 _Toc79815400 _Toc77430078 _Toc77430208 _Toc79306450 _Toc79815401 _Toc77430079 _Toc77430209 _Toc79306451 _Toc79815402 _Toc77430081 _Toc77430211 _Toc79306452 _Toc79815403 _Toc77430080 _Toc77430210 _Toc79306453 _Toc79815404 _Toc77430082 _Toc77430212 _Toc79306454 _Toc79815405 _Toc77430085 _Toc77430215 _Toc79306455 _Toc79815406 _Toc77430083 _Toc77430213 _Toc79306456 _Toc79815407 _Toc77430084 _Toc77430214 _Toc79306457 _Toc79815408 _Toc77430086 _Toc77430216 _Toc79306458 _Toc79815409 _Toc77430087 _Toc77430217 _Toc79306459 _Toc79815410 _Toc77430088 _Toc77430218 _Toc79306460 _Toc79815411 _Toc77430089 _Toc77430219 _Toc79306461 _Toc79815412 _Toc77559511 _Toc77559512 _Toc77430090 _Toc77430220 _Toc79306462 _Toc79815413 _Toc79306463 _Toc79815414oooow$w$w$w$''''1111F9F9F9G9;;;;DDDDIIII6I6I6I6IWIL3o3o3o3oxx  !"#$%&'()*+,-./0123456789:;$$$$'';';'1111_9_9_9_9;;;;5D5D5D5D5I5I5I5IVIVIVIVIILWoWoWoWoxxdbb"?T"@"AĂ"B"C"D"E "F||"G|"H|"I,w"Jlw"Kw"Ltt"Mt"N$q"Odq"Pq"Qln"Rn"Sn"Tlk"Uk"Vk"Wh"X i"YLi"Ze"[$f"\df"]_"^_"_Y"`Y"a$Z"bW"cDW"dS"eS"f4T"gP"P]]yyQQG G ee;;=W W $$$$!)!)3)3)?)?))9'D'D?D?D.F.FFFNHWIWIIIIIJJ`L`LrMrMNNJOJOPPPPQQQRRLTLTWWWW@Y@YYY>[>[[[\\\\M]M]]]^^^^@_@___aaccdd?e?eeeeff4g4ggghhiiiijjikikllJmJmmm#n#nkn{n{nooppppxxyy$y$y6y6yyyyyy'zSzSzzzzzzzzzzzzz{{ { {{{QQTƒƒʃʃԃԃXXmӄӄ//      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~affWW  M M kkAAH] ] $$$$')'):):)F)F))9-D-DEDED4F4FFF[H]I]IIIIIJJfLfLxMxMNNPOPO P PPPQQQRRRTRT"W"WWWFYFYYYD[D[[[\\\\S]S]]]^^^^F_F___aaccddEeEeeeeff:g:ggghhiiiijjokokmmPmPmmm)n)nynnnpp p pppxx"y"y1y1yAyAyyyyzz/z\z\zzzzzzzzzzzzz{{{{{{WW^ȃȃ҃҃܃܃aayلل55  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~8*urn:schemas-microsoft-com:office:smarttagsCity8*urn:schemas-microsoft-com:office:smarttagsdateB*urn:schemas-microsoft-com:office:smarttagscountry-region9*urn:schemas-microsoft-com:office:smarttagsplace 11319982001200220032004263056789DayMonthYear        M݄ jo,,..;;{]]=wNwM33333333ow$$'<'11G9`9;;D6DIWIQQ3VPVXXnZZ`ak lxxALMM|PQfZ5}x:V4~5*32\+d"*KK)tL(]9zJ4hcM8 ~( u B47 'z(f]<"1q%  >%̃'26%v:'8fct&E)§*sIn /G#*b:jhb:)TeOz^`.^`.^`.^`. ^`OJQJo( ^`OJQJo( ^`OJQJo( ^`OJQJo(hh^h`. hh^h`OJQJo(hh^h`()hh^h`()^`.h^`()^`()h^`(a)^`h^`.h^`-0^`0-0^`0()0^`0.0^`0.0^`0.0^`0()h^`.0^`0()p0p^p`0()^`()p@ ^p`()h^`o(0^`0o(()p0p^p`0o(()p0p^p`0o(-0^`0o(()0^`0o(()0^`0o(-p0p^p`0o(()@ 0@ ^@ `0o(()h^`o(.0^`0. 0^`0OJQJo(-^`.h^`()^`()h^`(a)^`h^`.h^`-0^`0-0^`0()hh^h`.hh^h`()^`.^`()^`3*G5CJsHtH_H()^`()^`^`.^`-0^`0-0^`0()h^h`()hh^h`()hh^h`()0^`0.^u u u u 47 u u u u u >%<~~}}||'z22222222 >%<~}|ct&Ect&Ect&Ect&Ect&Ect&Ect&Ect&E >%<~}|ct&Ect&Ect&Ect&Ect&Ect&Ect&Ect&E >%<~}|jhbJM8 G#*bq%6:'8*sI)Te%$]] ) >]Sz o!%!+4+r>VAW#B CMDOPH:J K'oVnG\'iw[w}zw#x=\N~4V}(jVma"$%&'()cdeopqrs Pt}QMτЄф҄ӄ+,./TUKu@@UnknownGz Times New Roman5Symbol3& z Arial?5 z Courier New5& z!Tahoma#qhڅ(oCoCd Ei++3QH ?}zwHC:\Program Files\Microsoft Office\Templates\1033\Publications\TPRG-E.dot WORLD TRADEDorangebardint                     Oh+'0p   , 8 DPX`h WORLD TRADEORLDorangeora TPRG-E.dotbardind30dMicrosoft Word 10.0@@m@LLC@o՜.+,D՜.+,@ hp   OMC - ϲʹxC   WORLD TRADE Titlex(LTdCountrySymbol1Norway WT/TPR/G/xx  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\^_`abcdfghijklmnopqrstuvwxyz{|}~Root Entry FPXData ]1TableeWordDocumentSummaryInformation(DocumentSummaryInformation8CompObjj  FMicrosoft Word Document MSWordDocWord.Document.89q