Brussels, 28/11/2012 (Agence Europe) - The European Union fears that the rise in import duty in Norway in the country's draft budget for 2013 would hinder EU exports of cheese and lamb to the country.
On Tuesday 27 November, the European Parliament's International Trade Committee relayed the EU's concerns in a debate attended by Norway's ambassador to the EU, Atle Leikvoll, about how the planned duty rises for 2013 would affect trade with its partners in the European Economic Area. The government of Norway's prime minister, Jens Stoltenberg, decided this autumn to improve Norwegian farmers' income by increasing import duty on farm products.
The EU is concerned that ad valorem import duty would be increased for certain farm products. In real terms, this would amount to a 277% rise in customs duty for hard cheese and soft cheese and a 439% rise in import duty on lamb. There would also be changes in the rules for duty on beef (steak). The countries that would be most affected would be the Netherlands, Germany, Denmark and Sweden.
Daniel Caspary (EPP, Germany), who chaired the meeting on Tuesday, said that not only did what was happening in Norway at the moment go against its international commitments, but something like this should not happen between friends. Christofer Fjellner (EPP, Sweden) said he was concerned that if the new system were introduced, it would lead to a complete collapse in EU cheese exports to Norway, pointing out that there was no need for protectionist measures in a country that had been spared the worst of the crisis, with economic growth of 5% and unemployment of only 3.1%. Helmut Scholz (GUE/NGL, Germany) said that the measures planned by Norway should be taken after bilateral consultations rather than unilaterally, as Oslo had done.
Norway's ambassador, Atle Leikvoll, argued that the changes in country's duty system were the result of an administrative, rather than anti-EU trade policy, decision. He pointed out that a system was in place to enable the EU to export large quantities of farm products to Norway duty-free and the EU's exports to Norway had grown by 150% over the past two years, whereas Norway's exports to the EU had grown by only 75%.
In the view of the European Commission, these are protectionist measures, a Commission representative told the ambassador, pointing out that they run counter to the both the spirit and the letter of the European Economic Area agreement; firstly because Norway has to consult the EU before changing its customs duty, and secondly because the measures contravene Norway's commitment to gradually liberalise its market in farm products. (EH/transl.fl)