Since 1 July 2002, Norway has provided duty-free and quota-free market access for all goods from all LDCs. From 1 January 2008, this scheme was expanded to include another 14 low-income developing countries, as the most important of several improvements to Norway’s GSP. The notification to the WTO was presented in the CTD on 5 May.
14/05/2008 :: Norway’s Generalized System of Preferences (GSP) was established already in 1971. The system has been revised and improved on several occasions – the latest coming to effect on 1 January 2008. This change was notified to the WTO on 10 April through document number WT/COMTD/N/6/Add.4 (see attachment). As an introduction to the notification in the Committee on Trade and Development on 5 May, the following statement was made by Minister Counsellor Henning Stirø:
Mr. Chairman,
Duty-free and quota-free market access for all goods from all Least Developed Countries was implemented as part of Norway's Generalized System of Preferences (GSP) some six years ago, as from 1 July 2002.
On 1 January 2008, Norway implemented several changes in its GSP. These changes were the result of a comprehensive Government review, initiated with the aim of increasing Norway's imports from the developing countries and in particular from the Least Developed Countries and other low-income countries.
The review was based on a study from an independent consultant, selected after public tender based on the WTO's GPA rules for government procurement. The work was taken further by a working group with representatives of relevant government institutions, which issued a report in April 2007 with fifteen recommendations for improvement of the GSP scheme.
After a public hearing of this report, including governmental, non-governmental and civil society organisations, the Government endorsed the recommendations and the Norwegian National Assembly made the necessary decisions as part of the State Budget for 2008.
A basic consideration of the review was to develop a consistent GSP based on objective criteria for selecting the countries that are included in the scheme as well as for differentiating between countries given duty-free and quota-free market access and countries given ordinary GSP treatment. The solution that was chosen was to base the GSP land list on the list of recipients of official development assistance (ODA) from the OECD's Development Assistance Committee (DAC)
Chair,
I should like to outline some of the salient features of Norway’s revised GSP:
• The OECD DAC list of ODA recipients shall be used as the basis for establishing the land list of Norway's GSP. Based on the DAC list, 11 new countries are included in Norway's GSP from 1 January 2008.
• The preference margin for ordinary GSP countries is increased by 20 percentage points within the WTO minimum access quotas for agricultural products.
• At the time of the review, duty-free and quota-free market access for all goods from all Least Developed Countries had already been in place for some years. As I said in the beginning, duty-free and quota-free market access for Least Developed Countries was established in 2002.
• As from 1 January this year, this provision is extended to include 14 low income countries that are not part of the group of Least Developed Countries. This means that 64 low-income countries are now given duty-free and quota-free market access into Norway for 100 % of goods.
• A country entering into a free trade agreement with Norway in accordance with GATT Article XXIV, is normally taken out of Norway's GSP when the FTA is entering into force.
• The two safeguard provisions of Norway's GSP as of 2007, which have never been used, are merged into one provision in order to simplify the system.
Chair,
Efforts will be made to assist the GSP countries, and in particular those countries that are given duty-free and quota-free market access, in meeting the requirements for preferential treatment under Norway's GSP system.
Information efforts will be carried out, such as improved and more accessible internet pages, printed material, and meetings/seminars in Least Developed Countries and other low income countries. Norway's Action Plan on Aid for Trade will play a role in trying to increase the use of the possibilities created by duty-free and quota-free market access.
Further information on Norway's GSP can be found in a small folder at the back of the room and of course on the web site of the Government of Norway.
Thank you, Mr. Chairman.
WT/COMTD/N/6/Add4.doc