The Committee on International Trade adopted the report by Tiziana BEGHIN (EFDD, IT) on the draft Council decision on the conclusion of an Agreement in the form of an exchange of letters between the European Union and the Kingdom of Norway concerning additional trade preferences in agricultural products.

The committee recommended that the European Parliament give its consent to the conclusion of the agreement.

As stated in the explanatory statement accompanying the recommendation, the proposed agreement will offer new trade opportunities for EU exporters and deepen trade relations between the EU and Norway. It seeks to increase the degree of liberalisation further, enlarging the current tariff rate quotas, opening new tariff rate quotas for additional agricultural products and addressing certain pending trade irritants.

Under the new agreement, both parties agreed to mutually grant duty free access to 36 new tariff lines. These include live horses, certain animal products and types of offal, plants, vegetables for feed purposes, provisionally preserved vegetables, fruit, berries and nuts, algae, certain sugars, fruit juices and fermented beverages.

Norway is the EU's 7th most important partner for trade in goods. While Norway's overall trade with the EU shows a surplus, in trade of basic agricultural products balance is much in favour of the EU, with the EU exports in 2016 reaching EUR 2 495 million against EUR 307 million imports from Norway.

The agreement represents a step towards engaging on liberalising agricultural trade between the EU and Norway further, in particular trade in processed agricultural products which is hindered by high customs tariffs in Norway and towards resuming negotiations on geographical indications.

PURPOSE: to conclude an Agreement in the form of an exchange of letters between the European Union and Norway concerning additional trade preferences in agricultural products.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: as a reminder, the EU and Norway are signatories to the Agreement on the European Economic Area (EEA Agreement) which provides for the free movement of goods, with the exception of agricultural and fisheries products.

Article 19 of the Agreement on the European Economic Area provides that the Contracting Parties undertake to continue their efforts with a view to achieving progressive liberalisation of agricultural trade.

In accordance with a Council Decision, the Agreement in the form of an exchange of letters between the EU and Norway concerning additional trade preferences in agricultural products was signed, subject to its conclusion.

It is now necessary to approve this Agreement.

CONTENT: the Council is called on to approve, on behalf of the Union, the Agreement in the form of an exchange of letters between the European Union and the Kingdom of Norway concerning additional trade preferences in agricultural products.

The Agreement reached following two years of negotiations will grant mutual duty-free access for 36 tariff lines, including for example various types of live plants, corn for feed, various berries and fermented beverages such as perry and cider.

As regards products such as meat, dairy, grains, vegetables and ornamental plants, Norway will grant the EU tariff quotas. In particular, Norway will offer in the meat sector an additional 1600-ton quota for bovine meat and smaller quotas for EU chicken and duck meat, pork, hams and sausages.

In the dairy sector Norway will open an additional 1200-ton quota for cheese.

As regards the remaining sectors Norway will offer additional market opening for EU ornamental plants, maize and lettuce.

The EU will reciprocate by opening a 700-ton quota for various types of chicken meat, a quota for preserved meat and offal. In the dairy sector the EU will offer Norway quotas for dried milk albumin and whey products.

PURPOSE: to conclude an agreement in the form of an exchange of letters between the European Union and Norway concerning additional trade preferences in agricultural products.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: the EU and Norway are signatories to the Agreement on the European Economic Area (EEA Agreement) which provides for the free movement of goods, with the exception of agricultural and fisheries products.

Article 19 of the EEA Agreement provides that the contracting Parties undertake to continue their efforts to achieve progressive liberalisation of trade in agricultural products.

The previous agreement in the form of an exchange of letters liberalising trade in agricultural products between Norway and the European Union was signed on 15 April 2011. It provided for mutual tariff rate quotas and reductions in duty. It also included an undertaking by the Parties to resume bilateral negotiations in two years’ time.

The 2011 EU-Norway bilateral agricultural trade agreement increased the duty-free access of EU agricultural products to the Norwegian market to around 60 % of trade.

Therefore, the latest round of negotiations aimed at: (i) increasing the degree of liberalisation on both sides; (ii) increasing the current tariff rate quotas; and (iii) opening new tariff rate quotas for additional agricultural products; (iv) addressing certain pending trade irritants.

CONTENT: the Commission proposes that the Council adopt a decision approving, on behalf of the European Union, the Agreement in the form of an exchange of letters between the European Union and Norway concerning additional trade preferences in agricultural products.

The Agreement provides for further trade preferences for trade in agricultural products, including additional fully liberalised tariff lines.

For more sensitive products such as meat, dairy, vegetables and ornamental plants, additional or new tariff quotas have been agreed upon.

The deepening of trade relations with Norway fits into the overall context of EU trade policy and is beneficial for the EU since the EU is a net exporter of basic agricultural products to Norway.

The main products exported by the EU are wines and vinegar, animal feed, soya and colza oil, live plants and cheese.

Imports into the EU from Norway are mainly soybean, animal and vegetable oils and their residues, fur skins and undenatured ethyl alcohol.

BUDGETARY IMPLICATIONS: this Agreement will have no impact on the expenditure side of the EU budget. The new concessions granted on imports from Norway will likely result in a reduction of own resources through a lower collection of customs duties.

PURPOSE: to conclude an agreement in the form of an exchange of letters between the European Union and Norway concerning additional trade preferences in agricultural products.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: the EU and Norway are signatories to the Agreement on the European Economic Area (EEA Agreement) which provides for the free movement of goods, with the exception of agricultural and fisheries products.

Article 19 of the EEA Agreement provides that the contracting Parties undertake to continue their efforts to achieve progressive liberalisation of trade in agricultural products.

The previous agreement in the form of an exchange of letters liberalising trade in agricultural products between Norway and the European Union was signed on 15 April 2011. It provided for mutual tariff rate quotas and reductions in duty. It also included an undertaking by the Parties to resume bilateral negotiations in two years’ time.

The 2011 EU-Norway bilateral agricultural trade agreement increased the duty-free access of EU agricultural products to the Norwegian market to around 60 % of trade.

Therefore, the latest round of negotiations aimed at: (i) increasing the degree of liberalisation on both sides; (ii) increasing the current tariff rate quotas; and (iii) opening new tariff rate quotas for additional agricultural products; (iv) addressing certain pending trade irritants.

CONTENT: the Commission proposes that the Council adopt a decision approving, on behalf of the European Union, the Agreement in the form of an exchange of letters between the European Union and Norway concerning additional trade preferences in agricultural products.

The Agreement provides for further trade preferences for trade in agricultural products, including additional fully liberalised tariff lines.

For more sensitive products such as meat, dairy, vegetables and ornamental plants, additional or new tariff quotas have been agreed upon.

The deepening of trade relations with Norway fits into the overall context of EU trade policy and is beneficial for the EU since the EU is a net exporter of basic agricultural products to Norway.

The main products exported by the EU are wines and vinegar, animal feed, soya and colza oil, live plants and cheese.

Imports into the EU from Norway are mainly soybean, animal and vegetable oils and their residues, fur skins and undenatured ethyl alcohol.

BUDGETARY IMPLICATIONS: this Agreement will have no impact on the expenditure side of the EU budget. The new concessions granted on imports from Norway will likely result in a reduction of own resources through a lower collection of customs duties.