Published by - Forsiden · 3.3.1 Air transport services 56 3.3.2 Maritime transport services 56...
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Published by:Norwegian Ministry of Trade and Industry Additional copies may be ordered from:Government Administration ServicesPost og distribusjonE-mail: [email protected]: + 47 22 24 27 86 Publication number: K-0702 EDesign: Lysvold DesignPrinted by: Government Administration Services – 03/2008 – Impression 200
This study has been prepared by the Ministry of Trade and Industry, Norway and the Ministry of Commerce, China.
3
Contents
Executive summary 5
Chapter one: Introduction 7
1.1 Overviewofbilateraleconomicrelations 7
1.2 AnintroductionoftheeconomiesofChinaandNorway 10
1.2.1 The Chinese economy 10
1.2.2 The Norwegian economy 11
1.3 Objectivesandstructureofthestudy 13
Chapter two: Impact of trade liberalisation in goods 15
2.1 AnoverviewofChinesetradepoliciesapplyingtotradeingoods 15
2.1.1 Tariffs 15
2.1.2 Tariff quota 16
2.1.3 Rules of origin 16
2.1.4 Other aspects of trade policy 17
2.2 AnoverviewofNorwegiantradepoliciesapplyingtotradeingoods 21
2.2.1 Tariffs 21
2.2.2 Quantitative restrictions 22
2.2.3 Rules of origin 23
2.2.4 Other aspects of trade policy 26
2.3 CurrenttrendsoftradeingoodsbetweenChinaandNorway 31
2.3.1 Technology goods: machinery, electronic equipments and optical instruments 33
2.3.2 Textiles and apparel 35
2.3.3 Oil, natural gas and chemical products 37
2.3.4 Metal products; including nickel, aluminium and iron/steel,
and alloys of the before mentioned 39
2.3.5 Fish and marine products 42
2.3.6 Agriculture products 45
2.4 Overallimpactofliberalizingtradeingoods 47
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s4 C O N C l u s I O N s A N d r e C O mm e N d At I O N s4
Chapter three: Impact of trade liberalisation on services 49
3.1 AnOverviewofChinesetradepoliciesApplyingtoservices 49
3.2 AnoverviewofNorwegiantradepoliciesapplyingtoservices 52
3.3 CurrenttrendsoftradeinservicesbetweenChinaandNorwayinspecificsectors 56
3.3.1 Air transport services 56
3.3.2 Maritime transport services 56
3.3.3 Energy services 58
3.3.4 Construction (and related engineering) services 59
3.3.5 Educational services 61
3.3.6 Hotels and restaurants services (including travel and tourism) 62
3.3.7 Environmental services 63
3.4 Overallimpactofliberalizingtradeinservices 63
Chapter four: Investment 65
4.1 AnoverviewofChineseinvestmentpolicyandmeasures 65
4.2 AnoverviewofNorwegianinvestmentpolicyandmeasures 68
4.2.1 Norwegian foreign portfolio investments through
the Government Pension Fund – Global 70
4.3 bilateraldirectinvestmentbetweenChinaandNorway 72
4.4 Overallimpactofliberalizinginvestment 72
Chapter five: Strengthening bilateral economic cooperation 74
5.1 tradefacilitation 74
5.2 e-commerce 77
5.3 sanitaryandphytosanitarymeasures(sps) 79
5.4 technicalregulationsandstandards(tbt) 83
5.5 Intellectualpropertyrights(Ipr) 85
5.6 smeCooperation 87
5.7 temporarymovementofnaturalpersons 89
5.8 tradeandinvestmentpromotion 91
5.9 environmentandtechnologycooperation 93
5.9.1 Environmental protection 94
5.9.2 Renewable energy exploitation 95
5.10 developmentCooperation 99
Chapter six: Conclusions and recommendations 100
6.1 KeyConclusions 100
6.2 recommendations 101
55
Executive summary
sincetheestablishmentofthetwocountries’diplomaticrelationsin1954,whichisbased
onthe“OneChina”principle,ChinaandNorway’spolitical,economicandtraderelation-
shiphasenjoyedrobusthealth.
On26march2007theChineseprimeministerWenJiabaoandtheNorwegianprime
ministerJensstoltenbergmetinbeijingandexchangedviewsonstrengtheningthe
bilateraltradeandeconomicrelationsbetweenthetwocountries.
AsanexpressionofthewillofChinaandNorwaytobuildanevenstrongereconomic
andtraderelationship,thetwocountriescommittedtoundertakeafeasibilitystudyof
apossiblefuturefreetradeAgreement(ftA)asabasisforadecisionastowhetherto
enterintoftAnegotiations.
thefeasibilitystudyshowsthat,whilebilateraltradehasgrownstronglyoverrecent
years,existingbarrierstotradecurrentlyinhibitthefullpotentialforfurthergrowthin
trade.thestudydemonstratesthatthesebarrierstakevariousformssuchastariff-and
non-tariffbarriersongoodsandregulatorymeasuresonservicesincertainsectors.
ApossibleftAbetweenChinaandNorwaywouldbeexpectedtoeliminatetariffson
substantiallyallthetradebetweenthetwocountriesandaddressingnon-tariffmeas-
ures,whiletakingintoaccountsensitivitiesonbothsides.Asaminimum,anftAshould
reducetariffsbeyondeachcountry’scommitmentsintheWorldtradeOrganization
(WtO).
thestudyhasdemonstratedthatservicesarenotonlyimportantintheeconomiesof
NorwayandChina,butalsoanimportantcomponentoftotalbilateraltrade.further
liberalisationoftradeinservicesbetweenthetwocountriesshouldbeaimedatcreating
mutualbeneficialandtailormadesolutionsforChinaandNorway.
Inrelationtoinvestment,thefutureftAbetweenChinaandNorwaywouldresultin
greatertransparencyofregulationsandlawsthataffectbothdirectandportfolioforeign
investments,moreliberalisedregimeswhichwillfacilitateinvestmentsineachcountry,
andamorestablepolicyframeworksforinvestors.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s6 C O N C l u s I O N s A N d r e C O mm e N d At I O N s66
AnftAwouldbeexpectedtointensifyfurtherbilateraltradeandeconomiccooperation,
includingintheareasoftradefacilitation,electroniccommerce,sanitaryandphytosani-
tarymeasures,technicalregulationsandstandards,intellectualpropertyrights,smalland
mediumsizebusinesscooperation,temporaryentry,tradeandinvestmentcooperation,
environmentandtechnologycooperationanddevelopmentcooperation.
Whilerecognisingthatnothinginthestudypre-judgeshowparticularissuesmightbe
addressedinthescopeofapossibleftA,bothpartiessharetheaimofcreatingasino-
Norwegianeconomicandtradeframeworkwiththeobjectivesofacceleratingsustain-
ableeconomicgrowthanddevelopment,creatingjobsandraisinglivingstandardsin
ChinaandNorway.
7
Chapter one: Introduction
1.1 Overview of bilateral economic relations
NorwayandChinaenjoyastrongandexcellentbilateralrelationship.
thefrequentexchangesofhigh-levelvisitscontributegreatlytotheexpansionofour
relationship.morethan70officialChinesedelegationsvisitedNorwayin2006.someof
themostillustriousvisitorswerepolitbureaumemberliChangchun,VicepremierZeng
peiyanandministerofCommerceboXilai.primeministerJensstoltenbergmade
asuccessfulvisittoChinainmarch2007.
duringthemorethan50yearsthatNorwayandChinahavehaddiplomaticrelations,
ourrelationshiphasgrowntoincludeanimpressiverangeofpersonalandinstitutional
contactsinalmosteverysectorofoursocieties.In2006ChinabecameNorway’smost
importanttradingpartnerinAsia.thesameyearsawtheestablishmentoftheNorwe-
gian-ChineseChamberofCommerce.forChina,Norwayisanimportanttradingpartner
inNortherneurope.tourismbothwayshasincreasedmanifoldinthelastfewyears.
In1963NorwaywasamongthefirstWesterncountrieswithwhichChinaestablished
anagreementonculturalcooperation.sincethenthecooperationbetweenourcoun-
triesinthefieldsofculture,educationandresearchhasseenasteadyincrease.Cultural
exchanges,researchcollaborationandstudentexchangeswillcontinuetoplayan
importantroleinincreasingtheinterfacebetweenNorwegianandChinesesociety
andstrengtheningbilateralcooperationinotherareas.
thisyearmarksthe10thanniversaryoftheChinese-Norwegiandialogueonhuman
rightsandtheruleoflaw.thedialoguehasbeenanimportantandpositiveadditionto
ourbilateralrelationship.formorethan10yearsourcountrieshavecollaboratedclosely
onenvironmentalissues,andwewillintensifyourcooperationonclimatechange,
renewableenergyandenergyefficiency.Otherareasofcollaborationincludetheequi-
tabledistributionofgoodsandresourcesandinternationalissuessuchaspeacekeeping
andglobalclimate,tradeanddevelopmentissues.
China’simpressivegrowthandincreasinginternationalpresenceontheworldstage
isamuch-welcomedevelopmentthatpresentsopportunitiestoallnations,including
Norway.tomeettheseopportunitiesaswellasthoseofanever-expandingbilateralrela-
tionship,theNorwegiangovernmentintroducedanewChinastrategyinAugust2007.
r e p O r t N O r WAy – C h I N A8
thestrategysetsoutNorway’saimsandprioritiesvis-à-visChina.thestrengtheningof
sino-Norwegianeconomicandtraderelationsisoneofthreemainpillarsofthisstrategy.
AsaconsequenceoftheimportanceNorwayattachestotheevolvingrelations
withChina,NorwaywillstrengthenitspresencebyopeningaConsulategeneralin
guangzhouandincreasingthestaffattheembassyinbeijing.
Trade and economic cooperation
sino-Norwegianeconomicrelationsarestrong.Increasedtradeandinvestments
betweenthetwocountries,andanincreasingnumberofeconomicagreements
betweenthetwostatesillustratethis.
bothNorwegianandChinesetradestatisticsshowthesametrend:tradeingoods
betweenChinaandNorwayisincreasing.1however,ChineseandNorwegiantrade
statisticsshowdifferentfiguresandpercentages.
basedonNorwegianstatisticstotalsino-Norwegiantrade(importsplusexports)
increasedby33%in2006comparedto2005.thevalueoftotalbilateralmerchandise
trade,importsplusexports,amountedtous$5,4billionin2006.Asubstantialincrease
ofNorwegianpetroleumexportstoChinaexplainsthisimpressivegrowth.Norway’s
exportstoChinadeclinedby6,5%inthefirstelevenmonthsof2007comparedtothe
sameperiodin2006,fromus$1,6billiontoapproximatelyus$1,5billion.thisisdueto
decreasedexportofoilsofarthisyear.
giventhatChinabuysNorwegianpetroleumonthespotmarket,therewillbevolatility
fromyeartoyearinthetradefigures.Abetterindicationofthelong-termtraderelations
isthereforetofocusontradeexcludingoilexports.excludingNorwegianoilexportsto
China,theincreasewasstillahealthy26%in2006.
ChineseexportstoNorwayin2006amountedtous$3,7billion,up17.1%from2005.
duringthefirstelevenmonthsof2007ChineseexportstoNorwaygrewby34%,
comparedtothesameperiodlastyear,andamountedtous$4,5billion.
In2006,oilconstitutedNorway’slargestexportitemtoChina(representing41%ofits
overallmerchandiseexports),followedbymachinery(15%)andfishandseafood(9,8%).
machineryandelectronicproductsrepresentedNorway’slargesimportitemsfrom
China(accountingfor17,7%and17,2%respectively),followedbywovenapparel(10,9%),
knitapparel(8,5%)andfurnitureandbedding(6,2%).
Chinesestatisticsshowthesametrends,butthepictureisquitedifferent:Norwegian
exportstoChinaincreasedby10%,fromus$1,14billiontous$1,25billionfrom2005to
2006.duringthefirstsixmonthsof2007NorwegianexportstoChinaincreasedby27,7%
1 ”trade”inthecontextofthischaptermeanstradeingoods,astherearenoreliablecountry-specificdatafortradeinservices.Asurveyofbilateraltradeinservicesiscoveredinchapterthree.
r e p O r t N O r WAy – C h I N A 9
comparedtothesameperiodin2006andreachedatotalof$us760million.Norwegian
importsincreasedby29%,fromus$1,32billiontous$1,7billionfrom2005to2006.
thefirstsixmonthsof2007importsincreasedby23,1%comparedtothesameperiodin
2006andreachedatotalof$us980million.
evenif,intheory,theimportdataofonecountryshouldbethemirrorimageofits
tradingpartner’sexportsdata,discrepanciesinmerchandisetradedataaretherule
ratherthantheexception.discrepanciesresultfromdifferencesincoverageofnational
tradestatistics,valuationsystems,partnerattributionincaseoftransittrade,classifica-
tion,timeofrecording,aswellasdifferencesinexchangesratesormethodsofcalcu-
latingtradedata.Asimplemethodtomodifythediscrepancieswouldbetousethe
importstatisticsofthetwocountriesasabasisforthedescriptionofthetraderelation-
ship.thiswouldfor2006giveatradevolumeofus$4,95billion(versustheNorwegian
figureofus$5,4andtheChineseofus$2,95billion).
AnincreasingnumberofNorwegiancompaniesinvestinChinaandChinesecompanies
havestartedtoinvestinNorway.AccordingtoofficialChinesefigures,Norwayhasmade
258separateinvestmentsinChina.tothisdatethreeChinesecompaniesareestablished
inNorway;Zte,COsCOandAirChina.
sino-Norwegianeconomiccooperationisstronginseveralsectors;themaritimesector,
theenergysector,themarinesector,tourismandtheenvironment.thesesectorshave
aconsiderablepotentialforfurthercooperation.theeconomiesofNorwayandChina
aretoalargedegreecomplementaryandsino-Norwegiantraderelationsarebasedon
comparativeeconomicstrengths.
thesino-NorwegianmixedCommissionforeconomyandtradeformedin1980isan
importanttoolinthebilateraleconomicrelationsbetweenChinaandNorway.Inaddi-
tiontodiscussingmattersrelatingtothegeneralframeworkforeconomicrelations
betweenChinaandNorway,thecommissionhandlesspecificbusinessissuesinvolving
theauthorities.Inseptember2006,ChinaandNorwayestablishedasub-committeeon
investmentsundertheJointCommission.thefirstmeetingtookplaceinJanuary2007.
thereareanumberofimportantagreementsbetweenChinaandNorwaysuchas
thetrilateralAgreementonmaritimeresearchbetweenChina,Norwayandsinga-
pore(August2006),theAgreementforestablishingasub-committeeforinvestments
(september2006),themouonenhancingCooperationinenergyConservationand
renewableenergy(september2006)andtherenewedAgreementonfisheriesCoopera-
tion(theupdatedversionofthe2001agreementwassignedinmarch2007),Approved
destinationstatus(Ads)Agreement(2004),Agreementofmaritimetransport(2003),
andabilateralinvestmenttreaty(bIt)(1984).
economicdevelopmentisconnectedtosustainabledevelopment,andawarenessofthe
linkagesbetweentradeandsustainabledevelopmentisincreasinginbothNorwayand
China.ChinaandNorwayarebothcommittedtotheobjectiveofsustainabledevelop-
r e p O r t N O r WAy – C h I N A10
ment,takingintoaccountsocial,environmental,culturalandeconomiccircumstancesin
eachcountry.Afruitfulcooperationonenvironmentalissueshasbeenongoingformore
thanadecade,andincludesawiderangeofactivities.ChinaandNorwayarealsoparties
toseveralmultilateralagreementswithintheareaofsustainabledevelopment,andhave
bothactivelyparticipatedatmilestoneeventssuchastheWorldsummitonsustainable
developmentinJohannesburg,southAfrica,2002.thetwogovernmentsalsoagreeon
theimportanceofsuccessfulandcompleteimplementationofrelevantlegislationand
policiesinordertoachievetheobjectiveofsustainabledevelopment.bothChinaand
Norwayopposethemisuseofstandardsinthesustainabledevelopmentareaasaform
ofdisguisedeconomicprotectionism.
thegovernmentsofChinaandNorwaywelcomethisJointstudyreportandtheefforts
onbothsidestoworktogethertoexplorepossibilitiesforincreasedtradeandinvest-
mentsbetweenthetwocountries.furthermore,theyrecognisethattheirstrengthened
bilateraltradeandeconomiccooperationmayalsoprovideimportantcontributions
towardstheobjectiveofsustainabledevelopment.
1.2 An introduction of the economies of China and Norway
1.2.1 The Chinese economy
Chinabegantoadoptthepolicyofreformandopeningtotheoutsideworldattheend
ofthe1970s,whichmarkedthebeginningofChina’stransitiontoamarketeconomy.
theprocessofChina’sentryintotheWtOhasmadethecountry’seconomicsystem
morecompatiblewiththeworldsystem.followingChina’saccessiontotheWtOin2001,
theChinesegovernmenthasconductedamassiverectificationandmodificationofthe
domesticlegislationandintroducednewlegislationsthatprovideChinawithasound
legalbasisforgoverningitsmarketeconomy.
sincetheadoptionofthereformandopeningpolicy,China’seconomicdevelopment
hasbeenspectacularwithgdpincreasingatanaverageannualrateof9.7%inthe1980s
and10.7%inthe1990s.sincethebeginningofthenewcentury,Chinahasregistered
asolidgrowthtrack,anditseconomyhascontinuedexpandingquickly.theeconomy
expandedbymorethan10%ineachofthelastfiveyears,atanaverageof10.4%.that
ismorethandoubletheaveragegrowthrateoftheworldeconomyduringthesame
period.ItshouldbenoticedthatChina’seconomyremainedstableasitsteamedahead.
Inthelastfiveyears,thegrowthrateneverfluctuatedbymorethan1.1%.meanwhile,
consumerpriceshavealsoremainedstableincreasingabout2.1%peryear.
China'seconomywastheworld'sfourthlargestin2006.thegapbetweenChinaandthe
u.s.,Japanandgermany–thetopthreeworldeconomies–hasalsonarrowedinterms
ofgdp.Chinanowcontributesmorethan5.5%totheworld'sgdp.
r e p O r t N O r WAy – C h I N A 11
China'sboomingeconomyalsosawitspercapitaincomecrossthethresholdofus$
2,000forthefirsttimein2006.AccordingtoWorldbankstandards,Chinashouldno
longerbeconsideredalow-incomenation,asitspercapitaincomenowresemblesthat
ofamiddle-incomecountry.
China’seconomicdevelopmenthasalsobeenassociatedwithasurgeinthegrowthof
foreigntrade.China’stotalmerchandiseimportsandexportsreachedus$1761billionin
2006,increasingby24%comparedwiththepreviousyear,inwhichexportsincreased
by27%(us$969billion)andimportsincreasedby20%(us$792billion),makingChina
thethirdlargesttradingcountryintheworld.meanwhile,theconditionofinterna-
tionalbalanceofpaymentimproved,withtheforeignexchangereservessignificantly
increasing.
theseeconomicsuccessesstemfromtheeffectivemacro-economicregulationofthe
centralgovernmentutilisingfiscalandmonetarypolicies.Combinedwithstronggrowth
indomesticconsumptionandinvestment,andrapidintegrationintotheworldeconomy,
thesefactorsshouldcontinuetosustainChina’srapideconomicgrowthanddevelop-
mentinthelongterm.
1.2.2 The Norwegian economy
Norwayhasoneofthehighestgdppercapitaintheworldandrankssecondineurope,
behindluxemburg.In2005Norwegiangdppercapita(atpurchasingpowerparity)was
169%oftheaveragelevelinthe25eumemberstates.
petroleumactivitieshavecontributedsubstantiallytoNorway’sgdp,exportsand
governmentrevenuessincethelate1970s.Norway’spetroleumindustries,including
crudeoilandgasextraction,accountedfor26%ofgdpandabouthalfofallexports
in20062.Norwayranksastheworld’sfifthlargestoilexporterandthetenthlargest
producer.estimatesindicatethattheremainingresourcesontheNorwegianconti-
nentalshelfwillpermitprofitableoilproductionfor50moreyearsandgasproduction
foralmostacentury.developmentofthenewresourceswilldependuponanumberof
factorsincludinggovernmentpolicies,expectationsregardingfutureoilandgasprices,
costreductionsandtechnologicaladvances.
Althoughpetroleumactivitiesareimportantfortheeconomy,employmentinthepetro-
leumindustryonlyamountsto1,4%oftotalemploymentinNorway.thisunderlinesthe
importanceofthecontinueddevelopmentofthemainlandeconomyforthewell-being
ofthesocietyassuch.
AsignificantshareoftheNorwegianeconomyconsistsofserviceindustries,including
wholesaleandretailtrade,banking,insurance,engineering,transportandcommunica-
2 sources:statisticsNorwayandtheministryofpetroleumandenergy
r e p O r t N O r WAy – C h I N A12
tionsandpublicservices.In2005,theservicesectorasawholeaccountedforapproxi-
mately52%ofgdp3.
manufacturingaccountedforapproximately9%ofgdpin2005.themajormanufac-
turingindustriesareindustrialandagriculturalmachinery,constructionofoilplatforms
andships,paperproducts,metalproducts,basicchemicalsandelectricalandelectronic
equipments.theseindustriesareallhighlyexport-oriented.
since1990,Norwayhasrecordedsurplusesinthetradebalanceeveryyearexceptin
1998.In2006thesurplusreached18%ofgdp(us$60.8billion).Countriesintheeuhave
historicallybeenamongNorway’smostimportanttradingpartners.In2006,about82%
ofmerchandiseexportswereshippedtotheeumembers,and69%ofthemerchandise
importscamefromthesamearea.pursuanttothe1973freetradeagreementbetween
Norwayandeu,tariffsonmostindustrialproductswereeliminated.theeeAagreement
hasledtotheeliminationofanumberoftheremainingtariffs.
Attheendof2005thestockofforeigndirectinvestments(fdI)inNorwayamountedto
us$80.3billion.europeaninvestorsownedmorethan70%ofthiscapital.thepetroleum
sectorreceivedabout31%oftotalfdI,and28%weredirectedtowardsmanufacturing.
OtherimportantindustriesattractingfdIinNorwaywerewholesale,retailtradeand
financialintermediation.
Attheendof2005thestockofNorwegianfdIabroadamountedtous$102.6billion.
Overhalfofthiswasconcentratedineurope(56%),20%wenttoNorthAmericaand
11%toAsia(ofwhichsingaporereceived6%).Investmentsinoilandgasexploration
increasedto32%oftotalNorwegianfdI,whereastheshareofmanufacturingand
miningindustriesdecreasedto36%.Investmentsinservicessuchastransportactivities,
postandtelecommunicationsisgrowing(9%attheendof2005).
Astocapitalmarkets,foreigninvestorshaveownedapproximatelyone-thirdofthe
NorwegianstockexchangeinOsloformorethanadecade.thisreflectsNorwaybeing
anopeneconomy,andisinlinewiththeownershipstructureofopeneconomiesof
comparablesize.AboutanotherthirdoftheOslostockexchangeisownedbythe
Norwegianstate.
thepublicsectorplaysanimportantpartintheeconomy.fullemployment,sustainable
development,fairdistributionandastrengtheningoftheNorwegianwelfaresystemare
theprimaryobjectivesofeconomicpolicy.Withaviewtoachievingtheseobjectives,
fiscalpolicyissetinaccordancewiththeeconomicpolicyguidelinesimplyingagradual
phasinginofpetroleumrevenuesintotheNorwegianeconomy.
thegovernmentpensionfund–globalisafiscalpolicyinstrumentthatvisualizesthe
useofpetroleumrevenuesthroughanannualtransfertothetreasury.Overtimetheuse
ofpetroleumrevenues,measuresbythestructural,non-oilbudgetdeficit,shallcorre-
3 AllfiguresarethoseofstatisticsNorwayunlessothersourcestated
r e p O r t N O r WAy – C h I N A 13
spondtotheexpectedrealreturnonthegovernmentpensionfund–global,estimated
at4%.
theNorwegianeconomyiscurrentlyexperiencingitsstrongestexpansioninthirty
years.Annualgrowthingdpexcludingshippingandpetroleumindustries(main-
landeconomy)hasbeenmorethan4.5%since2004.thisiswellabovethehistorical
averagefrom1980to2006of2.6%.themainfactorshavebeenstronggrowthinprivate
consumption,anupswinginmainlandfixedbusinessinvestmentsaswellashighinvest-
mentsinthepetroleumsector.
thegrowthcapacityoftheNorwegianeconomyishigh.thisisduetostrongproduc-
tivitygrowthandincreasedavailabilityofforeignlabour.Capacityutilisationhasnever-
thelessreachedaveryhighlevel,asaresultofstrongactivitygrowth.enterprisesreport
ashortageofqualifiedlabour,andmanypositionsarevacant.
byinternationalstandardsNorwegianunemploymentislowandemploymenthigh.
theunemploymentratehasbeenunder4%since2006.In200675.4%ofthepopulation
between15and64wasemployed.Norwayhasespeciallyhighemploymentforwomen
(72.2%ofwomenbetween15and64areemployed)andforelderlyworkers(67.4%of
peoplebetween55and64areemployed)4.
monetarypolicyisgearedtowardsmaintaininglowandstableinflation.theoperational
targetisdefinedasanannualincreaseinconsumerpricesofcloseto2.5%overtime.
theinterestratedecisionsofNorgesbank(thecentralbank)shallbeforwardlooking,
andpaydueattentiontotheuncertaintyattachedtomacroeconomicestimatesand
assessments.Consumerpriceinflationhasbeenrelativelylowforthepastfewyears
(1–1.5%)despitestrongeconomicgrowth.drivingforcesbehindarethecontinued
dropinpricesonimportedconsumergoodsandaslowerpaceinthepriceincreaseson
domesticallyproducedgoods.easymonetarypolicyhasbeenanimportantcontributorto
domesticgrowth.theNorwegianinterestrateiscurrently(asofNovember2007)5,25%.
1.3 Objectives and structure of the study
thestudyseekstosetouttheopportunitiesandchallengesforChinaandNorwaythat
abilateralftAmaybringontradeandinvestment.Inaddition,thisstudycanvassesa
widerangeofotherissuesofmutualinterest,highlightingoptionstoenhanceeconomic
cooperationbetweenChinaandNorway.AbilateralftAwouldbeconsistentwithWtO
rules,andbothsidescouldbuildontheirWtOcommitments.Italsoshouldbepointed
outthatthestudyiswithoutprejudicetowhetherpossiblefutureftAnegotiations
betweenChinaandNorwaywouldtakeupallissuesintheformsconsideredinthis
study.
4 source:eurostat
r e p O r t N O r WAy – C h I N A14
thefollowingarethetermsofreferencesetoutfortheJsgstudy:
•totakeacomprehensiveviewofbilateraleconomiclinkagesbetweenChinaand
Norway,coveringi.a.tradeingoodsandservices,investmentandotherareasof
economiccooperation,andgiveconcretesuggestionsonwaysandmeansto
encourageclosereconomicengagementbetweenthetwosides;
•toreviewandexaminetheexistinginstitutionalandlegalframe-workgoverning
bilateraltradeandinvestmentrelationsofChinaandNorwaywiththeobjectof
identifyingconstraints,barriersandimpedimentsforincreasingbilateralcoopera-
tionandrecommendmeasurestobeadoptedforincreasingcooperation;
•toexaminetheexistingregionaltradingarrangementsofChinaandNorwaywith
theirrespectivetradepartnersandevaluateitsimpactuponanypossibleChina-
Norwayarrangement;
•toconsiderthepossibilityandscopeofafreetradeagreementincludingcommon
disciplinesondifferenttradeandinvestmentareasandtraderelatedcooperation;
•toexaminealltheaspectsoftheexistingbilateraleconomicrelationshipbetween
NorwayandChina;
•tomakeotherrecommendationsinareassuchasenvironmentalanddevelopment
issues;
•tomakeotherrecommendationsforclosercooperationissuesofcommoninterest
inmultilateralandcommercialforums;and
•toprovideareferentialbasisfordecisiononabilateralChina-Norwayfreetrade
AgreementbythegovernmentsofChinaandNorway.
ChapterOneofthisstudyprovidesanoverviewofbilateraleconomicrelationsbetween
ChinaandNorwayandestablishestheobjectivesandstructureofthisstudy.
Chaptertwotofouraccountfortheexistingbarrierstotradeingoods,servicesand
investmentsbetweenChinaandNorway;andprovideananalysisonthescopeforand
potentialimpactofliberalisation,inbroadtermsaswellasinspecificsectors.
Chapterfiveidentifiesothersector-specificissuesandbroaderareasandopportuni-
tiesforfacilitatingcooperationwiththeobjectivesofstrengtheningbilaterallinkages
throughanftA.
Chaptersixcontainstheconclusionsandrecommendationofthisstudy.
15
Chapter two: Impact of trade liberalisation in goods
tradeingoodsaccountsforalargeproportionofbilateraltradebetweenChinaand
Norway.thischapteroutlinestheimpactoftradeliberalisationonindustrialgoodsand
agriculturalproducts.Itprovidesanoverviewofthestructureoftariffandnon-tariff
measuresthatareappliedinChinaandNorway,andexplorestheopportunitiesand
challengesoftradeliberalisationonindustrialgoodsandagriculturalproductsthrough
sectoralreviews.
2.1 An overview of Chinese trade policies applying to trade in goods
2.1.1 Tariffs
thecustomstariffofimportandexportofChinaiscompiledonthebasisoftheharmo-
nisedCommoditydescriptionandCodingsystem(hs)oftheWorldCustomsOrgani-
zation.AccordingtotheRegulation on Import and Export TariffofChina,dutyrateson
importscomprisemostfavouredNation(mfN)tariffrates,agreementtariffrates,special
preferentialtariffrates,generaltariffrates,tariffquotaratesandinterimtariffrates.
•mfNtariffratesshallapplytogoodsimportedfromandoriginatedinthemembers
oftheWorldtradeOrganisation(WtO),providingthemfNtreatmentismutually
reciprocalbetweenChinaandthesemembers;orthosecountriesorregionswith
whichChinahasconcludedabilateraltradeagreementforreciprocaltariffprefer-
ence;ortheCustomsterritoryofChina;
•theagreementtariffratesshallapplytogoodsimportedfromandoriginated
incountriesorregionswhichjointogetherwithChinaintoregionaltrade
agreementsfortariffpreferences;
•thespecialpreferentialtariffratesshallapplytogoodsimportedfromand
originatedincountriesorregionsthathaveconcludedspecialtariffpreferential
agreementswiththepeople’srepublicofChina.generallyspeaking,thespecial
tariffratesareapplicabletotheldCs;
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s16
•thegeneraltariffshallapplytoimportedgoodsoriginatedfromothercountries
and/ortoimportedgoodsofundeterminedorigin;
•thetariffquotaratesshallapplytoimportedgoodswhicharesubjecttothetariff
quotaadministrativeregulations;and
•theinterimtariffratesareappliedforaspecificperiodoftimetocertaingoods.
AsamemberoftheWtO,Chinabeganin2002tobindtariffsforallproductsandreduce
tariffinaccordancewiththescheduleofcommitmentsonmarketaccessforgoods,and
hasbeenfulfillingitscommitmentsontariffreductionfromthenon.
In2006,China’saveragetarifflevelwas9.9%.theaveragetarifflevelofindustrialpro-
ductswas9.0%,andthetariffsofmostofthemechanicalproductswerereducedto5%,
withsomereducedtozero.China’scurrentaveragetarifflevelforagriculturalproducts
is15.2%.5table2-1showsthedispersionofChina’starifflinesin2006.
In2007,China’saveragetarifflevelis9.8%.China’scurrentaveragetarifflevelforagri-
culturalproductsremainsat15.2%,whiletheaveragetarifflevelofindustrialproducts
hasbeenchangedfrom9.0%to8.95%.the2007CustomstariffofImportandexportof
thepeople’srepublicofChinawasmodifiedbasedonthehs2007versionoftheWorld
CustomsOrganisation(WCO).
2.1.2 Tariff quota
Chinaeliminatedtariffquotasonsoybeanoil,palmoil,rapeoilon10itemsin2006.At
present,theproductsstillsubjecttotrQadministrationinChinaincludewheat(6items),
maize(5items),ricewhetherornotbusked(14items),sugar(6items),wool(6items),
wooltops(3items),cotton(2items)andchemicalfertilizer(3items).
2.1.3 Rules of origin
Non-Preferential Rules of Origin
Withregardtothenon-preferentialrulesoforigin,thestateCouncilofthepeople’s
republicofChinahasenactedRegulations of the People’s Republic of China on the Origin
of the Imports and Exports,whichenteredintoforceon1January2005.theseregulations
areapplicabletotheorigindeterminationoftheimportedandexportedgoodseligible
fornon-preferentialtradesuchasmost-favoured-Nationtreatment,anti-dumpingand
countervailingmeasures,safeguardmeasures,originmarkings,country-specificquanti-
tativerestrictionsandtariffquotas.
5 Note:Allthetarifflevelslistedinthisparagraphareappliedtariffrates.
17r e p O r t N O r WAy – C h I N A
China’sNon-preferentialrulesofOriginarebasedonthefollowingcriteria:wholly
obtainedandsubstantialtransformation.substantialtransformationisapplicableto
origindeterminationwhenmorethanonecountryorregiontakepartintheproduction
ofagood.thecriterionofsubstantialtransformationismainlybasedonchangeintariff
classification.Othercriteriasuchasadvaloremvalueaddedpercentageandmanufac-
turingorprocessingoperations,shallbeappliedassupplementarycriteria,providedthat
changeintariffclassificationdoesnotreflectsubstantialtransformation.
Preferential Rules of Origin
preferentialrulesoforiginareapplicabletoproductsoriginatingfromcountrieswith
whichChinahasconcludedfreetradeAgreements.theprimarycriteriaofpreferential
rulesofOriginarewhollyobtainedandregionalValueContentcriteria.theproduct
specificCriteriaincluderegionalValueContentcriterion,changeintariffclassification
andmanufacturingorprocessingoperationscriteria.
(1) CEPA
mainlandChinahassignedtheClosereconomicpartnershipArrangement(CepA)with
hongKongandmacaorespectively.InCepA,thecriteriafordetermining“substantial
transformation”includemanufacturingorprocessingoperationscriterion,changein
tariffclassificationcriterion,30%value-addedcontentcriterion,othercriteriaormixed
criterion.
(2) Special Preferential Tariff Treatment
Chinahasgrantedspecialpreferentialtarifftreatmenttosomeoftheleastdeveloped
Countries.thecriteriaofspecialpreferentialtarifftreatmentincludechangeintariff
classificationand40%value-addedcontentcriteria.
(3) The Free Trade Agreements (FTA)
Atpresenttime,ChinahasconcludedftAswithAseAN,pakistanandChile.Inallofthese
ftAs,therulesoforiginarebasedonthe40%regionalValueContentcriteria.Asfor
someparticularproducts,productspecificrulesareintroduced.
2.1.4 Other aspects of trade policy
The World Trade Organisation (WTO)
sinceWtOAccessionindecember2001,Chinahasalwaysbeensupportingthe
strengtheningofthemultilateraltradingsystemandadvocatingthepreservationand
disseminationoftheWtOsfundamentalprinciplesguidinginternationaltradingrela-
tions.Chinafirmlybelievesthatthefair,openandnon-discriminationprinciplesprovided
byWtOareconducivetothestabilityandpredictabilityofinternationaltradeandtrade
development.theWtOembodiesthespiritofmultilateralisminfavourofjointpartici-
pationininternationalaffairs.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s18
eversinceaccession,ChinahasimplementeditsWtOaccessioncommitmentsandmade
comprehensiveadjustmentsofitstraderegimeandtradepolicy.Atthesametime,China
hassystematicallyoverhauledexistinglaws,administrativeregulationsanddepartment
rulestocomplywithWtOrulesandaccessioncommitments.Alltheprinciples,rulesand
requirementsembodiedintheWtOAgreementandtheprotocolontheAccessionof
Chinaareimplementedinacomprehensiveandeffectivemanner.governmenttranspar-
encyhasbeensignificantlyenhanced.theChinesegovernmenthasalsoestablishedthe
WtONotificationandenquiryCentreintheministryofCommercetoprovideinforma-
tionconcerningChina'stradepolicy,andtofulfiltheobligationofnotificationofChina's
tradepoliciesandmeasuresasspecificallyrequiredbytheWtOAgreement.thegeneral
publichasfreeaccesstoinformationconcerningtrade-relatedlaws,regulationsand
rulesthroughtheChinaforeigntradeandeconomicCooperationgazette,whichisalso
availableatthewebsiteoftheministryofCommerce (www.mofcom.gov.cn).
ChinahasbeenactivelyparticipatingintheWtOdoharoundoftradenegotiations,
whichhasastrongbearingonthefuturedevelopmentofinternationaltrade,the
possibilityofbalancedandorderlydevelopmentoftheworldeconomyandisinthe
immediateinterestsofthepeopleoftheworld.theChinesegovernmentisoftheview
thattheearlyconclusionofthedoharoundwithbalancedresults,willupholdthemulti-
lateraltradingsystem,andwillpromotefurthertheliberalisationofinternationaltrade.
tothisend,Chinahassubmittedmorethan30proposalsandpositionpapersinthe
negotiations,whichhaveplayedapositiveandconstructiveroleinadvancingthe
negotiations,bridgingunderstandingamongWtOmembersandnarrowingdifferences.
Regional trade liberalisation
Chinabelievesthatregionaleconomicandtradecooperationisanobjectivetrend
intheworldeconomyandtrade,aswellasanaturalchoiceforcountriesandregions
throughouttheworldinadaptingtotheacceleratingprocessofglobalisation.regional
tradeliberalisationhelpsbringdownbarrierstointra-regiontradeandinvestment.It
couldbecomeausefulsupplementtothemultilateraltradingsystemandhelppush
forwardglobaltradeliberalisationandinvestmentfacilitation.
uptonow,ChinahasconcludedClosereconomicpartnershipArrangements(CepA)with
hongKongspecialAdministrativeregion(sAr)andmacaosAr,signedtheframework
AgreementonComprehensiveeconomicCooperationwiththeAssociationofsouth-
eastAsianNations(AseAN),theAgreementontheearlyharvestprogramwithpakistan,
andthefreetradeAgreementwithChile.Chinaisalsoamemberstateofthebangkok
Agreement6.ChinaiscurrentlynegotiatingftAswithAustralia,NewZealand,singapore,
IcelandandthegulfCooperationCouncil(gCC).
6 thebangkokAgreementisaninitiativeundertheeconomicandsocialCommissionforAsiaandthepacific(esCAp)fortradeexpansionthroughexchangeoftariffconcessionsamongdevelopingcountrymembersoftheesCApregion.thisagreementwassignedon31stofJuly1975amongbangladesh,India,laopdr,republicofKorea,srilanka,thephilippinesandthailand.ChinaaccededtothebangkokAgreementin2001.
r e p O r t N O r WAy – C h I N A 19
Trade remedy measures
ChinahasestablishedatraderemedyregimeundertheWtOrules.thedomesticlegisla-
tionofChinesetraderemediesmainlycomprisestheforeigntradelawofthepeople’s
republicofChina,theAntidumpingregulationsofthepeople’srepublicofChina,the
Countervailingregulationsofthepeople’srepublicofChinaandsafeguardmeasures
regulations.Inaddition,ministryofCommerce,beingtheinvestigativeauthority,has
stipulated24regulationsofadministrationsaboutantidumping-,countervailing-and
safeguardmeasuresinvestigationaccordingtotheauthorizationofadministrativeregu-
lations.untilnowmostofChina’slegislationsontraderemedieshavebeennotifiedto
WtO.
Chinainitiatesandcarriesouttraderemedyinvestigationsinaccordancewiththe
relevantChineselaws,regulationsandtherelevantprovisionssetforthindifferentWtO
agreements,andensuresthatinterestedmembershaveduepossibilitiestoparticipatein
theinvestigationoftraderemediesbydeliveringtheiropinions.Chinaprotectsthelegal
profitsofinterestedmembersduringtheinvestigation,ensuringtheprincipleoftrans-
parencyanddueprocedurestomakethedecisionbasedonoutcomeoftheinvestiga-
tionfairly.theaimofChinabyapplyingtraderemediesistomaintaintheorderofinter-
nationaltradeandcarryoutfairforeigntradepolicies,andnottoapplytraderemedy
measurestorestrictregularimports.
fromdecember1997whenChinainitiatedthefirstanti-dumpinginvestigationon
importednews-printingpapertoOctober2007,Chinahasinitiated48anti-dumping
cases.Chinahasinitiated150anti-dumpinginvestigations(accordingtothestatis-
ticalmethodofWtOwhereoneproductforonecountrycountsasoneinvestigation).
throughinvestigation,definitivemeasureswereadoptedin37casesandnomeasures
in9cases.presentlythereare2casesstillunderinvestigation.
uptonow,Chinahasnotinitiatedanycountervailinginvestigationsconcerning
importedproducts.
Chinainitiateditsfirstsafeguardinvestigation(onimportsofcertainsteelproducts)
inmay2002upontherequestbyarelevantdomesticindustry.Chinadecidedto
imposedefinitivesafeguardmeasuresonfivecategoriesofimportedsteelproducts
inNovember2002.On26december2003,Chinaannouncedtheterminationofthe
safeguardmeasuresontheimportedsteelproducts.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s20
Ta
ble
2-1
Ch
ina’
s Ta
riff
Dis
per
sio
n F
or
20
06
Sect
ors
Tota
l=
0%0%
<X
<=
5%5%
<X
<=
10%
10%
<X
<=
15%
15%
<X
<=
20%
>20
%Sp
ecifi
cSi
mp
le A
vera
ge
Ap
plie
d T
ari
ff
Agricultureexcludingfish
1090
8176
271
274
208
173
715.2%
fishandfishproducts
185
1716
3797
171
010.5%
petroleumOils
191
117
0 0
00
6.3%
Wood,pulp,paperandfurniture
361
132
71132
422
00
5.0%
textilesandClothing
1069
0196
385
245
231
120
11.4%
leather,rubber,footwearandtravelgoods
219
115
9440
4227
013.1%
metals
750
32237
357
7537
120
7.3%
Chemicalandphotographicsupplies
1261
9168
1019
1410
437
7.0%
transportequipment
318
161
138
479
620
13.3%
Non-electricmachinery
884
101
150
478
130
1114
08.0%
electricmachinery
493
157
33157
7223
465
9.0%
mineralproducts,preciousstonesandmetals
365
41142
7451
1740
08.8%
manufacturedArticlesn.e.s.
591
7466
130
156
8976
011.7%
Allgoods
7605
647
1232
3289
1205
716
467
499.9%
Note:thistableisbasedonappliedmfNdutiesin2006.
source:ministryoffinance,China
r e p O r t N O r WAy – C h I N A 21
2.2 An overview of Norwegian trade policies applying to trade in goods
2.2.1 Tariffs
theNorwegianCustomstariffisbasedontheConventionontheharmonisedsystem
(hs).theNorwegianparliamentadoptstheratesofcustomsdutyeachyear.the2007
versionoftheNorwegianCustomstariffcontains7025eight-digittarifflines.1295of
theselinesarewithintheagriculturalsector.
Industrial sector, including fish and fisheries products
Only299tarifflinescovergoodsliabletocustomsduty.Allthesecodesarewithin
Chapters61–63oftheharmonisedsystemNomenclature,coveringclothingand
anumberfinishedtextilearticles.theratesvaryfrom0(zero)to13,7%(clothingfrom
0(zero)to10,7%).
Agricultural sector
Norwayhasboundmosttarifflinesforbothadvaloremandspecificrates.Currentlyin
theagriculturalsector439tarifflinesarefullydutyfreeand98tarifflinesaresubjectto
advaloremduties.theremaining758tarifflinesareliabletoaspecificduty(perkg,per
itemorperlitre).thetypeofdutyusedforeachagriculturalproductfortheupcoming
yearisannouncedinlegislationeachyeargivingcertaintytoexportersonwhichduty
thatwillbeapplicableforexportstotheNorwegianmarket.
theadvaloremratefor10tarifflinesarebelow10%,64between10%and99,9%.24lines
aresubjecttoarateof100%orabove,withthemaximumratebeing555%.thetarifflines
coveredbyspecificdutyratesaredistributedasspecifiedintable2-2hereunder:
Table 2-2
Specific duty rates Number of tariff lines
NOK0,01–0,99perkg 120
NOK1,00–9,99perkg 320
NOK10,00–99,99perkg 270
NOK100,00orabove 36
NOKperliter 5(beer)
NOKperitem 7(liveanimals)
fewpoliciesthatdirectlyaffectexportsareinplaceinNorway.exportlicencesare
requiredonlyforarmsandotherstrategicgoods,andforwhaleproducts.permission
(exportlicence)fromtheministryofforeignAffairsisrequiredfortheexportfrom
Norwayofsuchgoods,servicesandtechnologies.exportsoffishandfishproductsare
subjecttoastatutoryfeeforfinancingtheNorwegianseafoodexportCouncil(NseC).
NseCistheNorwegianseafoodindustry’scombinedmarketingandinformationcouncil.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s22
General System of Preferences (GSP)
Norwayhasageneralsystemofpreferences(gsp)scheme,whichallowsforpreferential
tariffsonimportsfromdevelopingcountriesandduty-freeandquota-freemarketaccess
forallproductsoriginatinginleast-developedcountries.theaveragetariffonimports
fromnon-ldCdevelopingcountriesis5.5%.
thepeoplesrepublicofChinahassince22march1979beenabeneficiarycountry
undertheNorwegiangsp-scheme.
2.2.2 Quantitative restrictions
thefollowingproductsaresubjecttoWtOminimummarketaccesscommitments
undertheWtOAgreementonAgricultureatafourtoeight-digithsheadinglevel:
meatofbovineanimals,frozen;meatofswine,frozen;meatofsheepandgoats(fresh,
chilledorfrozen);meatoffowlofthespeciesgallusdomesticus;meatofturkeys;meatof
poultryducks,geese,andguineafowl;meatofgame;butter;hens’eggsandwhiteandred
cabbage.Inaddition,Norwayhasglobalquotasatthehssixtoeight-digitlevel(apples,
pearsandturkeyroll)andonequotaatthetwo-digitlevel(meatforpromotionalfairs
andproducttesting).
thequotafillrateforthesequotasaregiveninthetableunder:
Table 2-3
Minimum access and other global quotas
hsheadingno.
Chapters02and16
descriptionofgoods
meattopromotionalfairsandproducttesting
Quantity
25tonnes
fillrate2006
36%
ex0202 meatofbovineanimals,frozen 1,084tonnes 100%
0203.2100 meatofswine,frozen 1,381tonnes 37%
ex0204 meatofsheepandgoats(fresh,chilledorfrozen) 206tonnes 98%
0207.1200 meatoffowlofthespeciesgallusdomesticus 221tonnes 45%
0207.2500 meatofturkeys 221tonnes 0%
0207.3300 meatofpoultryducks,geese,andguineafowl 221tonnes 37%
0208.1000,9030,9099 meatofgame 250tonnes 87%
0405.1000 butter 575tonnes 53%
0407.00.19 hens’eggs 1,295tonnes 100%
0704.90 Whiteandredcabbage 268tonnes 9%
0808.10 Apples 8000tonnes* 84%
0808.20 pears 250tonnes 98%
16.02.3101 turkeyroll 20tonnes 97%
*Onapples,quotasareallocatedoverthreeperiodseveryyear:7,000tonnesareallocatedfor1mayto31July;750tonnesfor1Augustto30November;and250tonnesfor1to30November.
r e p O r t N O r WAy – C h I N A 23
2.2.3 Rules of origin
Non-preferential rules of originareusedtodeterminetheoriginofgoodsforvarious
purposes,likeimport-andexportrestrictions,markingregulations,theapplicationof
mfNratesofdutyandothertradeinstruments.
Preferential rules of originareusedtodeterminewhetheraproductqualifiesundera
freetradeAgreement(ftA)forpreferentialtreatmentuponimportationintoapartner
country.rulesoforiginarenecessarytorestrictthebenefitsreciprocallynegotiatedto
thepartiestotheftAconcerned.Ataminimumsuchrulesshouldensurethatgoods
thataremerelytranshippedorsubjectonlytominimalprocessingintheterritoriesof
thepartiestotheftA,donotqualifyfortariffpreferencesundertheftA.Ingeneral,a
productisconsideredtooriginateinapartyifithasbeenwhollyobtainedthere,or,
wheresomeinputstotheproductioniscomingfromoutsidetheftAareaorwhere
somepartoftheproductionprocesstookplaceoutsideoftheftAarea,ifthegood
resultedfromsubstantialtransformationinthatparty.
•Whollyobtainediswhereagoodiswhollyproducedormanufacturedinone
countryfrommaterialswhollyoriginatingineitherftApartnercountry.
•substantialtransformationcanbedefinedeitheracrossallproductsorona
product-by-productbasis,byapplyingoneofthefollowingmethodsoracombina-
tionofthese:
Changeintariffclassificationmethod:underthismethod,aproductafteri.
productionisrequiredtobeclassifiedunderadifferenttariffclassification
fromthatofitscomponentmaterials;
Value-addedmethod:underthismethod,aminimumpercentageoftheii.
valueofaproductmusthavebeenaddedwithinthecountryorpreferen-
tialareaforwhichoriginisbeingclaimed(i.e.thevalueofinputmaterials
fromanon-partyisrestricted);and
specifiedprocessormanufactureoperationsmethod:underthismethod,iii.
theoriginisbasedonthecountryinwhichaspecifiedmanufacturingor
processingoperationforaspecificproductisundertaken.
Acombinationoftheabovemethods.iv.
preferentialrulesoforiginarenegotiatedseparatelyforeachfreetradeAgreementby
thepartiestothatftAinaccordancewiththespecificcircumstancesofthoseparties.
Non-preferential rules of origin
thefollowingnon-preferentialrulesoforiginhavebeenpresentedtotheNorwegian
parliamentaspartofanewCustomsAct,foradoptionin2007:
Iftheoriginofaproductistobedeterminedwithoutbeingbasedonaspecific(1)
agreementonpreferentialtarifftreatmentwithforeignstateororganization,
therulesoforiginsetoutinparagraphs(2),(3)and(4)shallapply,subjectto
anyobligationsapplicabletoNorwayunderinternationallaw.theprovisions
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s24
setoutinparagraphs(2),(3)and(4)alsoapplytomfNtreatmentinaccordance
withArticleIofthegeneralAgreementontariffsandtrade,anduponissueof
proofsoforiginforaproductnotcoveredbyafreetradeagreementorauto-
nomouspreferentialarrangement.
Aproductisconsideredtooriginateinthecountrywhereitiswhollyobtained,(2)
orwherethelastsubstantialprocessingtookplace.theterritoryofacountry
includesitsterritorialsea.
thefollowingproductsshallbeconsideredaswhollyobtainedinacountry:(3)
mineralproductsextractedfromthesoilofthecountry;i.
vegetableproductsharvestedinthecountry;ii.
liveanimalsbornandraisedinthecountry;iii.
productsfromliveanimalsraisedinthecountryandproductsfromiv.
hunting,fishingandtrappinginthecountry;
productsofseafishingandotherproductstakenfromtheseaoutsidethev.
territorialseaofacountrybyvesselsregisteredinthecountryorinthe
ship’sregistryofthecountryandflyingtheflagofthecountry;
productsmadeaboardfactoryshipsexclusivelyfromproductsreferredtovi.
under(e),andoriginatinginthecountry,providedthatthesefactoryships
areregisteredinthecountryorintheship’sregistryofthecountryand
flyingtheflagofthecountry;
productsextractedfrommarinesoilorsubsoiloutsidetheterritorialsea,vii.
providedthatthiscountryhassolerightstoworkthatsoilorsubsoil;
wasteandscrapresultingfrommanufacturingoperationsconductedinviii.
acountry,andusedarticlesifcollectedinthecountryandfitonlyforthe
recoveryofrawmaterials;and
productsmanufacturedinthecountryexclusivelyfromproductsspecifiedix.
under(a)to(h),orfromtheirderivativesatanystageofproduction.
Wheremorethanonecountryhavebeeninvolvedinthemanufactureofa(4)
product,thecountryoforiginshallbethecountryinwhichthelastsubstantial
andeconomicallyjustifiedworkorprocessingtakesplace,andresultinginthe
manufactureofanewproduct,orrepresentinganessentialstepinthemanu-
factureofaproduct.re-packaging,sorting,mixingorminorchangesarenot
consideredbeingworkorprocessing.
theministrymaygivearegulationontheimplementationoftheserulesof(5)
origin,includingrequirementsforevidencesoforiginandtheexpansionof
thescopeofapplicationtooriginmarking,governmentprocurementandtrade
statistics.
r e p O r t N O r WAy – C h I N A 25
Preferential rules of origin of the Norwegian GSP-system
Norwayhasbeenadonorcountrywithinthescopeofthegspsystemsasof1971.since
then,therulesoforiginhavebeenrevisedandliberalisedseveraltimes,andduringthe
lateryearstheruleshavebeenharmonisedineurope.
therulesoforiginintheNorwegiangsp-schemearebasedonthefollowingprinciples.
•Whollyobtainedcriterion
•Changeoftariffclassificationofmaterialsused
•Inalistofproduct-specificoriginrules,specificproductionrequirementsmustbe
fulfilledfortheproductsmentionedinthelist.
•forsomeproductstherearespecificrequirementslikeforexamplemanufacture
fromyarn;forsomeproductstherearevalue-addedrules;andforotherproducts
acombinationrulemightbeapplicable.
•Atoleranceruleof5%maybeapplied,exceptfortextileproducts.
InadditiontheNorwegiangspschemecontainsprovisionsforcumulationoforiginwith
originationproductsunderthefollowingregimes:
–bilateralcumulation
–diagonalcumulationwithproductsoriginatinginswitzerlandortheeuropean
Communityonareciprocalbasis
–regionalcumulation(AseAN)
therulesoforiginforuseintheNorwegiangsp-systemaregiveninaministerialregu-
lationdated20february1998(fOr158).
Preferential rules of origin of the Norwegian Free Trade Agreements
sincetheestablishmentoftheeftA-conventionin1960,Norwayhasappliedpreferential
rulesoforiginforthebenefitofthebusinesscommunityreceivingpreferentialtariffs
intradebetweentheparties.Abilateralfreetradeagreementwasestablishedbetween
NorwayandtheeuropeaneconomicCommunityin1973.theagreementontheeuro-
peaneconomicAreaenteredintoforce1January1994betweenthememberstatesof
theeuropeanCommunityandthreeeftAstatesNorway,Icelandandliechtenstein.since
then,theeuropeanrulesoforigin,beinganintegralpartoftheNorwegianfreetrade
agreementsinforce,havebeenadjustedseveraltimes,andaretodayanupdatedand
moderninstrumentforthedeterminationofpreferentialstatusofproductstobetraded
betweenthepartiesconcerned.
since1997,NorwayandthethreeothereftAstatesIceland,switzerlandandliechten-
stein,haveparticipatedinthesystemofpan-europeancumulationoforigin.thissystem
currentlycomprisesthe27eu-countries,the4eftAstatesandturkey.thepan-european
cumulationsystemallowsforfreeuseoforiginatingmaterialsthroughouttheeuropean
continent.however,“fullcumulation”isallowedonlybetweenthememberstatesofthe
eeA.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s26
Adecisionwastakenin2005topavethewayfortheextensionofthissystemtonine
mediterraneanpartners(Algeria,egypt,Israel,Jordan,lebanon,morocco,syria,tunisia
andthepalestinianAuthorityoftheWestbankandgazastrip)andaswellthefaroe
Islands.thissystem,beingreferredtoasthepaneuro-mediterraneancumulationsystem,
iscurrentlyunderdevelopmentandexpandsaccordingtothespeedofimplementing
revisedoriginprotocolsandnewfreetradeagreementsbetweentheparties.the
extendedsystembecomeseffectiveamongcountriesthathaveconcludedfreetrade
agreementswiththeeuandeftAcountriesandwitheachother(atleasttriangular
tradewithidenticalrulesoforigin).
Inthefreetradeagreementswithcountriesoutsidethepan-euro-mediterraneancumu-
lationsystem,Norwayhas,alongwiththeothereftAstates,appliedrulesoforiginthat
arebasedonthelayoutofthepan-euro-mediterraneanmodel,providingforbilateral
cumulationpossibilitiesbetweenthepartiestotheftA.
theharmonisedrulesconsistoftwomainparts:
1)generalrulesthatidentifythebasicprinciplesofrOO:productsneedtobeeither
“whollyobtained”or“sufficientlyworkedorprocessed”inthecountryconcernedinorder
tobeconsideredoriginatingandtobeeligibleforpreferentialtarifftreatmentwithinthe
freetradearea.theyalsoincluderulesonevidencesoforiginandaswellasadministra-
tivecooperationforthesubsequentverificationofsuchproofoforigin.
2)listrules:aproduct-by-productlistofcriteriarequiredforproductstobegranted
originatingstatus,suchas
–changeintariffheading(aproductisconsideredoriginatingintheexportingcountry
ifithasbeensufficientlytransformedinthatcountrytobeclassifiedunderadifferent
headingatfour-digitlevelintheharmonisedsystem);
–sufficientprocessing(theoriginisdeterminedintermsofspecificprocessingopera-
tionsnecessarytogivetheproductitscurrentcharacteristics);
–valueaddedcriterion(theoriginisdeterminedintermsofthevaluethatmayhave
beenaddedtotheproductintheexportingcountry);or
–acombinationoftheabove.
theNorwegianpreferentialrulesoforiginforapplicationinfreetradeagreementsin
forcearegiveninaministerialregulationdated13december2004(fOr1702).
2.2.4 Other aspects of trade policy
The World Trade Organisation (WTO)
Asstatedin2.2,multilateraltradeliberalisationthroughtheWtOisthefirstofthethree
maintracksonwhichNorwaypursuesitstradeliberalisationpolicy.
NorwaywasoneofthefoundingmembersofthegAttin1947andremainsstrongly
committedtothemultilateraltradeframeworkundertheauspicesoftheWtO.Astrong,
r e p O r t N O r WAy – C h I N A 27
rules-basedsystemisthebestguaranteeagainstunilateralismandprotectionism,and
provides,stability,security,transparency,andpredictabilityfortraders.
NorwayfirmlybelievesthatallWtOmembersstandtogainsignificantlyfromfurther
tradepolicynegotiationsaimedatstrengtheningthemultilateraltradingsystemand
improvingmarketaccessforgoodsandservices.economicgrowthanddevelopment
inallnations–andparticularlyindevelopingcountries–dependsonastrongand
fairmultilateraltradingsystem.Norwayisthereforestronglycommittedtothedoha
developmentAgenda(ddA).Norway’smainobjectivesintheongoingnegotiations
aresubstantialimprovementsinmarketaccessforindustrialgoods(includingfishand
fishproducts),withthelong-termgoalofabolishingtariffsandunjustifiednon-tariff
measures,improvedmarketaccessforservices,strongerdisciplinesintheareaofanti-
dumpingmeasuresandtheeliminationoffisheriessubsidiesthatleadtoincreased
fishingcapacity.furtherNorwaywantstomaintainacertainlevelofdutiesanddomestic
supportintheagriculturalsector.thatisimportantformakingitpossibletomaintaina
viableagriculturalsectorinahighcostcountry.
Norwayhasalsounilaterallyliberalisedtradeingoodsandservicesinordertoharvest
theeconomicbenefitsofsuchmeasures.equallyimportant,Norway’stariffsystemand
administrativeproceduresforimporthaveundergonesignificantcomputerisationand
simplificationoverthelastfewyears.Norwayhastakenunilateralstepstopromotetrade
withdevelopingcountriesbyimplementingimprovementstoitsgsp.
tradepolicyhasincreasinglybecomeatopicforpoliticaldebateinthepublicdomainin
Norway.Inadditiontothetraditionaldebateontheeconomicmeritsoftrade,increasing
emphasisisbeingputonotheraspectssuchashealth,environment,foodandconsumer
safety.toensurethecontinuedsupportofthegeneralpublicforthemultilateraltrading
systemoftheWtOaswellasforregionaltradeagreements,thegovernmentconsults
extensivelyatthenationallevelwithnon-governmentalgroups,includingrepresenta-
tivesoftradeandindustry,labour,consumerandotherinterestedorganisations.Norwe-
giantradepolicyenjoysbroadpoliticalsupportinthestorting(theNorwegianparlia-
ment).
The European Economic Area
theeuropeanunionisNorway’smostimportanttradingpartner.In200682%oftotal
Norwegianexportsofgoodswenttothismarket,amountingtous$71,5billion.Oiland
naturalgasarebyfarthemostimportantNorwegianexportarticlestotheeuwithover
72%shareoftotalexports.Correspondingly,importsfromtheeuconstitutedapproxi-
mately69%oftotalNorwegianimportsin2006,equivalenttous$43,5billion.
Norway’stradeandeconomicrelationswiththeeuaremainlygovernedbytheAgree-
mentontheeuropeaneconomicArea(theeeAAgreement)7.theeeAAgreement
enteredintoforceon1January1994andunitesthe27eumemberstatesandthethree
7 theAgreementmaybefoundonthefollowingwebsite:<http://secretariat.efta.int/Web/europeaneconomicArea/eeAAgreement/eeAAgreement>
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s28
eeAeftAstates(Iceland,liechtensteinandNorway)inanInternalmarketgovernedby
thesamebasicrules.
theserulesaimtoenableindustrialgoods,services,capital,andpersonstomovefreely
abouttheeeAinanopenandcompetitiveenvironment,aconceptreferredtoasthe
fourfreedoms.exceptforcertainfisheries’andagriculturalproducts,theeeAAgreement
providesforfreetrade(zerotariffs).
theeeAAgreementprovidesacommonsetofrulesfortradeandeconomicrelations.
IntheareascoveredbytheeeAAgreement,Norwegianbusinessesandnationalsare
entitledtotheequaltreatmentasbusinessesandnationalsofeustatesacrosstheentire
Internalmarket.
theeeAAgreementprovidesfor:
•participationintheinternalmarket,withfreemovementofgoods,services,persons
andcapital.thismeansi.a.thataproductapprovedinonecountryunderthe
commonrulesnormallyhastobeacceptedintheothercountries.Workers,self-
employed,serviceprovidersandstudentsfromothereeAcountriesaregenerally
entitledtoequaltreatmentwiththenationalsofthehostcountry,includinginthe
areasofsocialsecurityandtherecognitionofoccupationalqualifications;
•harmonisationofrulesandrequirementstowhichgoodsandservicesare
subjectforreasonsofhealth,safetyandenvironmentalprotectionandtoprotect
consumerinterests;
•Commonrulesregulatingcompetition,stateaidandpublicprocurementtoensure
alevelplayingfieldforallenterprisescompetingintheinternalmarket;
•extensivecooperationinotherareasofsociety,mostimportantlyinresearch,
education,environmentalprotection,consumerpolicy,culturalaffairs,socialpolicy,
genderequality,tourismandsmallandmedium-sizedenterprises;but
•theeeAAgreementdoesnotcovertheeu’scustomsunionoritscommontrade
policywithnon-memberstates.NoraretheeeAeftAstatesincludedintheeu’s
commonagriculturalpolicyorthecommonfisherypolicy,meaningthattheeeA
Agreementdoesnotincludeacommonresourcemanagementregime.Itdoesnot
allowfreemarketaccessforallagriculturalandfishproducts,thoughitprovidesfor
lowercustomsdutiesandbettermarketaccessforanumberofsuchproducts.
theeeAAgreementisconstantlyevolving.Whenevernewrulesgoverningtheinternal
marketareadopted,theeeAAgreementisamendedtobringtheAgreementinlinewith
theseneweurules.thisisdonethroughdecisionsbytheeeAJointCommittee,onwhich
theeftAcountriesandtheeuropeanCommissionarebothrepresented.Allnewrules
r e p O r t N O r WAy – C h I N A 29
thatareadoptedintheeeAJointCommitteemustbeincorporatedintonationallaw
oftheeeAeftAstates.
theeftAsurveillanceAuthorityandtheeftACourtarechargedwithensuringthatthe
eftAcountriescomplywiththeirobligationsundertheeeAAgreement.Contributions
fromtheeeAeftAcountriestowardseconomicandsocialdevelopmentinthepoorereu
countrieshavebeenpartoftheeeAAgreementsinceitfirstenteredintoforce.priority
sectorsforsupportunderthemechanismsincludeenvironmentalprotection,sustain-
abledevelopment,culturalheritage,promotionofeducationandtraining,moreeffective
externalbordercontrolsandstrengtheningthejudiciary,andhealthandchildcare.
European Free Trade Association (EFTA)
AsamemberstateofeftA(Iceland,liechtenstein,Norwayandswitzerland)Norwayhas
currentlyconcludedfreetradeagreementswith16statesorgroupofstates(Canada,
Chile,Croatia,egypt,Israel,Jordan,lebanon,macedonia,mexico,morocco,republicof
Korea,southernAfricanCustomsunion,singapore,thepalestinianAuthority,tunisiaand
turkey).eftAiscurrentlyengagedinfreetradenegotiationswithAlgeria,Colombia,the
gulfCooperationCouncil,peruandthailand.AjointfeasibilitystudybetweeneftAand
IndiawascompletedinOctober2007.
OneofeftA’smaingoalshasbeentocontributetotheexpansionoftradeintheworld
atlarge.sincethebeginningofthe1990s,eftAhasactivelypursuedtraderelationswith
thirdcountriesinandbeyondeurope.AguidingprincipleforeftA’snegotiationswith
thirdpartycountrieshasbeentosecurethateftAbusinessesenjoythesamerightsand
privilegesasbusinessesfromtheeuinforeignmarkets.Inmorerecentyears,theeftA
stateshavealsoprioritisedftAnegotiationsbasedonindependenteconomicconsid-
erations,regardlessoftheeustraderelationswiththethirdpartycountryinquestion.
WhenactingtogethertheeftAcountriesnegotiatetheirfreetradeagreementsasa
group,speakingwithonevoiceatthenegotiatingtable.however,eftAdoesnothavea
commontradepolicy–allmemberstateshavetoagreeonthenegotiationparameters
priortoeachroundofnegotiations.thus,eachmembercountrymaintainsfullsover-
eigntyintheprocess.
freetradeagreementsprovideincreasedpredictabilityandimprovedmarketaccess
conditionsintradebetweenNorwayandthepartnercountryhencepavingtheway
forincreasedtwo-waytrade.Inasituationwhereanincreasingnumberofcountries
arenegotiatingmarketaccessonapreferentialbasisNorway’sftAssecureNorwegian
economicinterestsinimportantinternationalmarketsandarethereforeanintegralpart
ofNorwegiantradepolicy.
AprincipleineftAsfreetradeagreementsistoachievefulldutyandquotafreetradein
industrialgoods(includingfishandfishproducts)andtomakecertaintariffreductions
foragriculturalproducts.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s30
ItshouldbenotedthatwhiletheeftAcountriespursueapolicyofconcludingfreetrade
agreements,thisdoesnotdetractthemfromgivingprioritytoawell-functioningmulti-
lateraltradesystemundertheauspicesoftheWtO.thetwoapproaches,bilateraland
multilateral,aremutuallysupportive.
Trade remedy measures
Norwayhaslawsandregulationsthatallowtheimpositionoftraderemedymeasures
(anti-dumping,countervailingandsafeguardmeasures)inaccordancewithourinter-
nationalobligationsandWtOrules.however,Norwayhasnotcarriedoutanyanti-
dumping,anti-subsidyorsafeguardinvestigationsnorappliedanysuchmeasuresduring
thelasttwodecades.thusNorway’spolicyregardingapplicationoftraderemediesisin
practiceoneofnon-application.
toNorwayitiscrucialthatthesolutionsadoptedinftAstowhichNorwayisapartyare
consistentwiththegeneraltradepolicyofNorwayconcerningsuchmeasures.Inthe
presentWtOnegotiationsNorwayisastrongadvocateforastrictandstringentappli-
cationoftraderemedymeasures.
InrespectoftradebetweenpartnersthathaveenteredintofreetradeAgreements,
Norwayadvocatesapolicyofnon-applicationofanti-dumpingandcountervailing
measures.AsregardssafeguardmeasuresinaccordancewithgAttArticleXIXandthe
WtOAgreementonsafeguards,Norway’sviewisthatsuchmeasuresinaccordancewith
theseprovisionscannotbeappliedagainstftApartnersthatareWtOmembersandthe
bilateralftAspecificallyprohibitssuchmeasures.
Norwegian agricultural policy
OnlyfewareasinNorwayaresuitableforagriculture.duetothecountry’stopography,
fieldsareoftensmall,scatteredanddifficulttocultivateefficiently.Ofthetotalarea,only
2,7%isfarmland.theclimatealsodetermineswhichcropscanbegrownandtheiryield
level.
Importantobjectivesfortheagriculturalpolicyaretoproducesafefoodtotheconsumer
andpublicgoods,aswellasnon-tradeconcernssuchasfoodsecurity,securingsettle-
mentinruralareasandculturallandscapes.AgricultureinNorwayproducestherefore
morethanjustfoodandfibres.
NorwayappliestariffsonmanyagriculturalproductstoenableNorwegianfarmersto
selltheirproductsdomestically.thetariffsforkeyNorwegianproductsareashighas
300–450%,buttheaveragedutyforallagriculturalproductsis39%.
thecustomsdutiesandpreferencesboundintheWtOandinftAsforagricultural
goodscangenerallybesaidtobehigher,toaccordforthehigherdomesticprice,for
commoditiesproducedinNorwaythanforproductsnotproduceddomestically.the
mostimportantagriculturalproductsforNorwayare:meat,dairyproducts,grainsand
r e p O r t N O r WAy – C h I N A 31
somefruitsandvegetables.thismeansthatNorwayinftAsgivesmostpreferencesto
otherfruitsandvegetables,flowersandnon-sensitiveproducts.
2.3 Current trends of trade in goods between China and Norway
tradeingoodsbetweenChinaandNorwayhasincreasedsubstantiallyduringthepast
fewyears.In2006,thetotalvalueoftradeingoodsbetweenChinaandNorwayreached
us$2950.44million,comparedwithus$981.67millionin2001,indicatingathreefold
increase.theexportsofgoodsfromChinatoNorway,whichwasus$410.99in2001,
increasedtous$1700.71millionin2006.Norway’sexportsofgoodsdestinedforChina
wasus$1249.37millionin2006,anincreaseof119%comparedto2001.
Table 2-4 Annual Value of Trade in Goods between China and Norway
(US$ million)
Year China’s exports Norway’s exports Total value
2001 411 571 982
2002 527 929 1450
2003 899 865 1765
2004 1029 1398 2426
2005 1322 1144 2466
2006 1701 1250 2950
*thestatisticsof2006iscalculatedaccordingtoChina’scustomstatistics.
source:Chinastatisticsyearbook,2002-2006.
IndustrialgoodsarethemostsignificantexportsofChinatoNorway,accountingfor
nearly98%ofallexportedgoodstoNorwayoriginatinginChina.In2006,themain
productsChinaexportstoNorwayincludeapparelandaccessories(us$766.61million),
officemachines,dataprocessingmachines(us$552.26million),telecommunication
apparatusandequipment(us$438.53million),electricalmachineryandapparatus
(us$208.88.million),andmanufacturesofmetals(us$162.24million).8
8 source:statisticsNorway,http://www.ssb.no/.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s32
Table 2-5 China’s Main Merchandise Exports to Norway
(US$ million)
HS06 Description Value of exports
84713000portableAdp,weight≤10kg,withatleastCpu/keyboard/display
6.8
89019041 motorbulkcarriers,loadingcapacity≤150000t 5.8
89012011 refinedpetroleumtankers,loadingcapacity≤100000t 5
85252022 radiotelephonehandsets 4.6
61103000Jerseys,pullovers,etc,ofman-madefibres,knittedor
crocheted4
61102000 Jerseys,pullovers,etc,ofcotton,knittedorcrocheted 3.9
73089000 structure/partsnes,prepdplate,rodsetcforstruct,i/s 3.9
62046200 Women’sorgirls’trousers,breeches,etc,ofcotton 3.3
61091000t-shirts,singlets&othervests,ofcotton,knittedor
crocheted3.2
62104000 men’sorboys’garmentsoffabricsof59.03,59.06or59.07 2.5
source:China’sCustomstatistics,2006.
petroleumandpetroleumproducts,generalindustrialmachineryandequipment,fish,
chemicalsandrelatedproducts,non-ferrousmetalsarethemainproductsthatNorway
exportedtoChina.In2006,theseproductsaccountedformorethan80%ofNorway’s
totalexportstoChina.
Table 2-6 Norway’s Main Merchandise Exports to China
(US$ million)
HS06 Description Value of exports
27090000petroleumoils&oilsobtainedfrombituminous
minerals,crude17.6
31052000
mineralorchemicalfertilizerscontaining
thethreefertilizingelementsnitrogen,
phosphorus&potassium
11.4
75021000 Niunwrought,notalloyed 9.8
29242990Cyclicamides(incl.cycliccarbamates)andtheir
derivatives;saltsthereof,nes7.3
03037400 frozenmackerel 4.3
25161100 granite,crudeorroughlytrimmed 3.8
03036000 frozencod(excl.livers&roes) 2.7
03037990 frozenfish,nes 2.6
84138100 pumpsnes 2.5
03037200 frozenhaddock 2.3
source:China’sCustomstatistics,2006.
r e p O r t N O r WAy – C h I N A 33
2.3.1 Technology goods: machinery, electronic equipments and optical instruments 9
Chinaisoneoftheworld’smostimportantproducersandexportersofmachineryand
electronicequipments,whichhasbeenthebiggestcategoryofChina’sexportsduring
thepastdecade.mirroringtheeconomicdevelopmentandupgradeofindustrialstruc-
ture,China’simportsinthiscategoryhavealsobeenincreasingrapidlyinrecentyears.
AccordingtothelateststatisticsfrommOfCOm,thetotalvolumeofChina’smachinery
andelectronicequipmentstradereachedus$977.18billionin2006,amongwhich
exportsaccountedforus$549.42billion,rankingthethirdoftheworld,andimport,
us$427.76billion,rankingthesecondoftheworld.
Norway'srobusteconomicdevelopmentinrecentyearshasbeenconducivetotheengi-
neeringmachineryandequipmentindustryofthecountry.Atpresent,Norwayisalsoa
competitiveproducerofcertaintechnology-intensivemachineryandtransportequip-
ment.machineryandequipmentsfortheshipbuildingindustrymakesupanimportant
partofthesector.shipyardshavealongtraditioninNorway,andcontinuetoplayavital
roleinmanycommunities.Norwegianshipyardsmainlybuildsmallandmedium-sized
specialistships,suchasproducttankers,chemicaltankers,supplyshipsandhigh-speed
passengerboats.Norway’sshipbuildingtraditionshavealsoledtothedevelopmentof
hi-techproductionofmaritimeequipment.Anotherimportantpartofthetechnology
industrysuppliesoilplatformsandotherhighlyspecialisedequipmenttothepetro-
leumindustry.therearealsoniche-orientatedtechnologycompaniesinothermarkets
supplyingproductssuchasreversevendingmachines,videoconferencingsystems,
advancedcarparts,andpressuresensorsforvehiclesandtheoffshore-industry.exports
bythetechnologyindustryconstitutearound9%ofNorway’stotalexports,andnearly
twicethatwhenpetroleumexportsisexcluded.Animportantfeatureofthisbusiness
sectoristhatasignificantshareofthesuppliesissemi-manufacturedproductsand
elementsthatarepartoftheproductionprocessesinothercountriessuchasChina.
muchofthesector’sgrowthoverthelastfewyearshastakenplaceabroad.
technologygoodsareanimportantcontributortomerchandisetradebetweenChina
andNorway.In2006,thetwo-waytradeinthiscategoryreachedus$728.1million,
amongwhichChina’sexportstoNorwaytotalledus$350.4,andimportstotalled
us$377.8million.
9 “technologygoods”refertothecommoditiesunderChapter84,85and90oftheharmonisedsystem.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s34
Table 2-7 China’s exports of machinery and electronic equipments to Norway
(2004–2006, US$)
HS Description
2004 2005 2006
technology(hs84,85,90) 107.1 236.7 350.4
84 machineryincl.computersetc. 52.9 102.6 148
85 electricalmachineryandequipment 46.3 120.4 178.6
90 Opticalinstrumentsetc. 7.9 13.7 23.9
source:China’sCustomstatistics,2006.
Table 2-8 China’s imports of machinery and electronic equipments from Norway
(2004–2006, US$)
HS Description
2004 2005 2006
technology(hs84,85,90) 309.7 340 377.8
84 machineryincl.computersetc. 179.3 191 216.1
85 electricalmachineryandequipment 94.4 103.9 109.1
90 Opticalinstrumentsetc. 36.1 45.5 52.5
source:China’sCustomstatistics,2006.
machineryandelectronicequipmentsconstitutealargeshareofChineseexportsto
Norwayandtheexportvaluehasbeenrapidlyincreasingoverthelastfewyears.Norway
importsagreatvarietyofChinesetechnologies.however,reflectingtheincreasingpopu-
larityinNorwayforhighqualityChinesecomputers,televisionsets,CdplayersanddVd
players,themajorityofChinesetechnologyexportstoNorwayareconsumerelectronics.
Oftheabove-mentionedproducts,personalcomputersconstitutethelargestimport
category.Otherconsumerelectronicssuchasradios,tVs,Cd-anddVdplayers,andoffice
machinepartsarealsoimportedinlargeandincreasingquantities.
OverthelastthreeyearsNorwayhasexperiencedarapidgrowthintechnologyexports
toChina.theincreaseofsuchgoodswassubstantialin2006byover51%comparedto
theyearbefore.Closeto70%ofNorway’sexportsoftechnologyproductsaremachin-
eries(hs84).liquidpumpsprimarilyusedinships,hadthelargestshareofmachineries
in2006byapproximately25%.Astheexportofship-equipmentsuchaspumpsareinter-
linkedwiththeincreasinglyactiveChineseshipbuildingindustry,theprospectsoffuture
growthofNorwegianmachineryexportstoChinaarebright.
InaccordancewithChina’scommitmentstotheWtO,theaveragetarifflevelofChina
formachineryproductswasreducedto10%in2005,andthatforelectricandelectronic
productswasloweredto9%.Norwayexempttariffonimportedmachineryandelec-
tronicequipmentandimplementstechnicalregulationsinaccordancewithinterna-
tionalstandards.
r e p O r t N O r WAy – C h I N A 35
tosomeextents,thebilateraltradeofmachineryandelectronicequipmentbetween
ChinaandNorwayhasthecharacteristicsofintra-industrytrade,andisfairlycomple-
mentary.Chinahascomparativeadvantagesinrelativelabour-intensiveelectronicpro-
ducts,whileNorwayhascomparativeadvantagesintechnology-intensiveones.Conse-
quently,apossibleftAprovidesanopportunityforencouraginggrowthintwo-way
tradeinthissectorthroughfurtherliberalisationintariffandnon-tariffmeasures.
2.3.2 Textiles and apparel10
Chinaisthebiggestproducerandexporteroftextilesandapparelproductsintheworld.
AccordingtothelateststatisticsfromChinaCustoms,thetotalvolumeofChina’stextilesand
apparelproductstradereachedus$162.06billionin2006,anincreaseof22.6%overthelast
year,amongwhichexportsaccountedforus$144billion,andimportsus$18.1billion.
thetextileandapparelindustryofNorwayhasalonghistoryofdevelopment.however,
exposuretoforeigncompetitionresultedintheearlyrestructuringofNorwegian
consumermanufacturingindustry,suchastheoncethrivingNorwegiantextileindustry.
Atpresent,theindustry,whichconsistsofabout495companiesand5000employees,
accountsformerely0.3%ofNorway’sgdp.AbigproportionofNorway’smarketdemand
fortextileandapparelproductsdependsonimports.
textilesandapparelproductshavebeenoneofChina’stopexportstoNorwayfor
manyyears.China’sexportsinthiscategoryin2004and2005valuedrespectively
us$501millionandus$430.8million.In2006,theexportvalueincreasedfurtherto
us$572.4million,accountingfor45.1%ofChina’stotalexportstoNorwaythatyear.
themostimportanttextilearticlesexportedfromChinatoNorwayin2006arepull-
overs/cardigans(hs611030,us$40.3million),cottonsweaters(hs611020,us$39.4
million),andwomentrousersofcotton(hs620462,us$32.6million).
Table 2-9 China’s Textiles and Apparel Exports to Norway
(US$ million)
HS Description
2004 2005 2006
finishedtextileproductsandclothing(hs61–63)
501 430.8 572.4
62ArticlesOfApparelAndClothingAccessories
244.6 191 265.4
61ArticlesOfApparelAndClothingAccessories,knit
198.2 184 237
63made-uptextileArticlesNesoi;Needlecraftsets
58.1 56.3 70.1
source:China’sCustomstatistics,2006.
10 refertothecommoditiesunderChapter61–63ofharmonisedsystem.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s36
Diagram 2-1 The five largest exporters of finished textiles and clothing in 2006
– share (%) of total imports
sourceofdata:statisticsNorway
diagram2-1showsthefivemostimportantexportersoftextilesandclothingtoNorway
in2006.Asonecansee,Chinanowhasthelargestmarketshareoftotalimportsof
suchproductstoNorway.In1997China’sshareoftotaltextilesandclothingimports
was19.4%,comparedtoeusshareof57.6%.In2006Chinasurpassedeuasthelargest
exporteroftextilesandclothingtoNorway.China’sshareoftotaltextilesimportsto
Norwayin2006was36.9%.
Accordingto China’s Schedule of Concessions and Commitments on Goods intheWtO,
China’sfinalboundratesoftextilesandapparelproductsrangeasfollows:yarns5–6%,
fabric10–18%,apparel14–20%,andfinishedproducts10–17.5%.reductionsonall
butoneitem(hs5512.11.00)werecompletedinaccordancewiththetariffreduction
scheduleby1January2005.
Norwaystillmaintains299tarifflinesliabletocustomsdutywithinChapters61–63of
theharmonisedsystemNomenclature,coveringclothingandanumberfinishedtextile
articles.thesetariffsaremaintainedinordertoprotectthefewremainingproducers
intheindustry.thetariffratesvaryfromzeroto13.7%.AmajorityofChina’sexportsto
Norwayinthiscategoryaresubjecttoatariffrateof10.7%.
takingintoaccountthattheeu,throughtheeeA-agreement,turkey,throughtheeftA-
turkeyftA,andbangladeshasarecipientofNorwegiangspinwhichthecountry
isgrantedleastdevelopedCountry(ldC)-treatment,enjoytariff-freeaccesstothe
Norwegianmarket,asino-NorwegianftAmayfurtherstrengthenChina’spositionin
theNorwegianmarketforfinishedtextilesandclothing.however,itshouldbenoticed
thatNorwayhasexperiencedatransformationofitstextilesandapparelindustryin
recentyears.productionandresourceshavetoalargeextentswitchedfromlowcost
apparelareastohighvalueapparelsectors.Ashiftoffocustowarddesign,logisticsand
0
500
1000
1500
2000
2500
3000
3500
4000
LDC
GSP
EU
Other countries
2006200520042003
r e p O r t N O r WAy – C h I N A 37
marketingarealsofeaturesoftheindustryoverthepastdecade.Inthissense,apossible
ftAwouldprovideanopportunityforfurthersupportingtwo-waytradeoftextilesand
apparelproducts.Amoreliberalisedtrade-regimeinthiscategorywouldlowerthecost
ofNorwegianconsumersonclothingmanufacturedbyChina,resultinginincreased
Chineseproductionandhenceinvestmentsassociatedwiththeindustry.theimpactof
furthertariffliberalisationonNorway’stextileandapparelproducerscouldalsobetaken
intoaccountinthefutureftA,althoughtheimpactisexpectedtobelessthanthestruc-
turaladjustmentalreadyunderwayasaresultofdomesticreformandglobalisation.
2.3.3 Oil, natural gas and chemical products
productionofoilandgasontheNorwegiancontinentalshelf(NCs)startedin1971,and
todaytherearemorethan50fieldsinproduction.In2006,thesefieldsproduced2.8
millionbarrelsofoil(includingNglandcondensate)perdayand88billionstandard
cubicmetres(scm)ofgas,foratotalproductionofsaleablepetroleumof249millionscm
oilequivalents(o.e.).In2006Norwayrankedastheworld’sfifthlargestoilexporterand
thetenthlargestoilproducer.
In2006,crudeoil,naturalgasandpipelineservicesaccountedfor51%ofthevalueof
Norway’sexports.thevalueofpetroleumexportswasus$79,3billion.greatsumshave
beeninvestedinexploration,fielddevelopment,transportinfrastructureandlandfacili-
ties.Investmentsin2006amountedtous$14,9billion,or24%ofthecountry’stotalreal
investments.
CreatingNorwegianandNorwegian-basedpetroleumexpertisehasbeenanimportant
elementinNorwegianpetroleumpolicy.today,Norwayhasahighlydevelopedand
internationallycompetitivepetroleumindustry.thisappliestotheoilcompanies,where
statoilhydroisthelargest,thesupplyindustryandtheresearchinstitutions.supply
companiesinNorwayarerepresentedinmostpartsofthevaluechain,fromexplora-
tionanddevelopmenttoproductionanddisposal.Norwegiansuppliersareamongthe
leadingintheworldinfieldssuchasseismicsurvey,drillingequipment,subseafacilities
andfloatingproductionsolutions.
Alargeresourcebaseandthecompetenceandtechnologylevelinthepetroleumsector
areveryimportantassetstoNorway.Norwaycontinuestofocusonlongtermactivities
ontheNorwegianContinentalshelfandatthesametimegiveattentiontointernational
marketsforthesupplyandserviceindustries.thevariouselementsinthepetroleum
policyhavedevelopedovertimeandinclosedialoguebetweenthedifferentinterests.
generally,ithasbeenveryimportanttopursueasustainablepetroleumpolicythat
allowsfordueconsiderationsoftheenvironmentandaconcernforfuturegenerations.
IthasbeenaguidingprinciplefortheNorwegianresourcemanagementtoopenup
theNorwegianContinentalshelfforforeigncompaniesgradually.thereasonisthat
thisenablesNorwaytolearnfromoneareaandgainmoreknowledgebeforeopening
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s38
upnewareasforpetroleumactivities.thereareconsiderablevariationsregardingthe
degreeofmaturityinthedifferentareasoftheNorwegianContinentalshelf,withthe
barentsseanorthofNorwaybeingtheleastexploredpartoftheshelf.
manyofthepetroleum-relatedgoodsmanufacturedinNorwayincludesophisticated
technologystemmingfromdomesticresearchandengineeringservices.Norwegian
technologyisworldleadingindifferentareaswithinoffshoretechnologyandthepetro-
leumandgasindustryisthelargestindustryinNorway.
takingadvantageofthecountry’srichoilandgasresources,Norwayhasdeveloped
internationallycompetitivecompanieswithinthepetrochemicalindustry.
China’spetroleumreservesandoutputrankfirstintheAsia-pacificregion.theestimated
recoverablepetroleumreserveofChinaisabout20billiontons,ranking6thintheworld.
AccordingtothefigurespublishedbyChinaNationalbureauofstatistics,theaverage
annualgrowthrateofChina’spetroleumoutputinthepasttenyearswas1.8%,whilethe
petroleumconsumptionofChinagrewatanaveragerateof4.9%inthesameperiodof
time,whichwasthehighestintheworld.Atpresent,Chinaisthesecondlargestcountry
intermsofpetroleumconsumptionintheworld,aftertheunitedstates.Consequently,
China’simportofpetroleumhasbeenincreasingatahighrateinthepastdecade.In
2006,China’simportofpetroleumreached145.2milliontonsatthecostofus$66.4
billion,rankingthirdintheworld,onlysurpassedbytheunitedstatesandJapan.
Chinaisalsooneofmostimportantproducersofchemicalproductsintheworld.
however,withtherapiddevelopmentofChina’seconomy,thedomesticallyproduced
chemicalproductscannotfulfilthehugeandgrowingmarketdemand.therefore,
currentlyabouthalfofChina’smarketdemandforchemicalproductsdependson
import.
bilateraltradebetweenChinaandNorwayinpetroleumandchemicalproductshas
grownsignificantlyinrecentyears,reflectinggrowthinChinesedomesticdemandand
continuedtariffliberalisationofpetroleumandchemicalproductsandothersectors
wherepetroleumandchemicalproductsareintermediaryinputs.In2006,thetotal
tradevalueofpetroleumandchemicalsproductsbetweenChinaandNorwayreached
us$1027.8million,amongwhichChina’simportstotalledus$936million.thesector
accountedfor17.4%ofthetotalbilateraltradeand54.8%ofChina’stotalimportsfrom
Norwayinthisyear.11
11 source:statisticsNorway,http://www.ssb.no/.
r e p O r t N O r WAy – C h I N A 39
Table 2-10 China’s Imports of Petroleum and Chemicals Products from Norway
(US$ million)
HS06 Description 2004 2005 2006
27090000petroleumoils&oilsobtainedfrombitu-
minousminerals,crude575.9 230.6 176
31050000
mineralorchemicalfertilizerscontaining
thethreefertilizingelementsnitrogen,
phosphorus&potassium
96.6 84.8 114
29242990Cyclicamides(incl.cycliccarbamates)
andtheirderivatives;saltsthereof,nes46.4 35.9 73.4
source:China’sCustomstatistics,2004-2006.
table2–10showsthatmineralfuels,oils,waxes&bituminoussub(hs27),organicchemi-
cals(hs29),andfertilizers(hs31)arethemostsignificantproductsthatNorwayexports
toChina.In2006,theseproductsaccountedforrespectively18.8%,12.1%and7.8%of
China’simportsofpetroleumandchemicalproductsfromNorway.
Asanetimporterofpetroleum,Chinadoesnotimposetariffonimportedcrudeoiland
naturalgas.thetariffratesofChinaappliedtothemajorityofchemicalimportsarein
therangeof0%–20%.tariffquotas(trQs)areappliedonchemicalfertilizers.Norway
hasboundtariffratesupto7%onsomechemicalproducts.12theappliedtariffrateof
chemicalproductsis,however,zero.
theestablishmentofthefutureftAwouldbeofgreatsignificancetothebilateraltrade
ofpetroleumandespeciallychemicalproducts,thusbringingbenefitsforbothChina
andNorway.theproducerswillbenefitfromincreaseddemandandpotentiallybetter
returnsforexports,andtheconsumerswillbenefitfromlowerpricesandincreased
supply.furthermore,theftAwillhelptoformalong-termmutuallybeneficialpartner-
shipbasedontrustbetweenthetwocountries.energysafetycooperationwillbenefit
bothChinaandNorwaybyprovidingthemfavourableconditionsforsustainable
economicdevelopment.
2.3.4 Metal products; including nickel, aluminium and iron/steel, and alloys of the before mentioned
themetalindustryaccountsforabouthalfofemploymentintheenergy-intensive
industryinNorway.Aluminiumisthesinglemostimportantproduct,withNorskhydro
beingthedominantcompany.Norskhydrohassignificantownershipinterestsin
foreignaluminiumcompanies,particularlywithinthefieldofprocessingrawmetals.
thecompanyisalsoinvolvedinaluminiumprocessinginNorway.rapiddevelopments
12 source:tariffprofileofNorway2006(WtO)
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s40
inthemetalindustryrequireNorwegiancompaniestospendsignificantresourceson
productimprovements.
theothermainproductgroupwithinthemetalindustryistheproductionofmetalsin
whichironisacomponent(ferro-alloys).byaddingmetalssuchaschromeandsilicon,
theironbecomeslesssusceptibletocorrosionandbettersuitedtotheproductionof
steelforcarsandships.Internationalcompetitionisalsostronginthispartofthemetal
industry.thelargestNorwegiancompanyinthisareaiselkem.
WiththeeconomicdevelopmentofChina,thestrongmarketdemandhasstimulated
therapiddevelopmentofthecountry’smetalindustry.forexample,Chinahasbeenthe
world'slargestcrudesteelproducersince1996andthelargestconsumersince2003.In
thecomingyears,itisestimatedthat60%ofsteelwillbemanufacturedandconsumed
inAsia,hereinparticularlyChina.Atpresent,Chinamanufactures34%oftotalmanufac-
turedsteelintheworldandconsumesabout33%.Chinahasalreadybecometheworld’s
biggeststeelmanufacturingandconsumingcountry.Itisestimatedthatthemetal
manufacturingandconsumptionofChinawillincreaserespectivelyto550mtand
530mtby2010.
Table 2-11 Metal products exports to China 2004–2006 (US$ million)
HS Description
2004 2005 2006
metalproducts(hs72–83excl.hs78&80) 70,5 127,7 174,2
75 Nickelandarticlesthereof 21,3 45,3 64
76 Aluminumandarticlesthereof 22,5 39 39,6
74 Copperandarticlesthereof 10 15,5 28,5
73 Articlesofironorsteel 6,9 13,6 20,8
72 Ironandsteel 9 12 18,6
83 miscellaneousarticlesofbasemetal 0,2 0,4 1,7
81 basemetalsnesoi;cermets;articlesthereof 0,5 1,6 0,7
82 tools,implements,cutleryetc. 0,1 0,03 0,2
79 Zincandarticlesthereof 0 0,002 0
sourceofdata:statisticsNorway
NorwegianexportsofmetalproductstoChinahaveshownastronggrowthinthelast
threeyears,byalmosttriplinginvalue.themostimportantproductarticlesofmetal
exportstoChinaarenickel(us$64millionin2006)andaluminium(us$39,6million).
NorwegiannickelismainlyutilisedintheproductionofstainlesssteelinChina.Increased
productionofChinesesteelishencecorrelatedwithincreasedimportsofNorwe-
giannickel.theremovalofChina’sadvaloremtariffrateofcurrently3%forimported
unwroughtnickel(hs720210)willthereforecreatefurthersynergiesinthemetalindus-
triesofChinaandNorway.
r e p O r t N O r WAy – C h I N A 41
Norwayisamajorproducerofaluminiumandexportssuperthinhigh-gradealuminium
plates(hs7606)totheChineseelectronicsindustry.In2006thevalueofNorway’sexport
toChinaofthesearticleswasus$15,6million.this,however,is40%lessthancompared
to2005.theremovalofthe6%tariffratescurrentlyinplaceinChinafortheseproducts
wouldensureasteadysupplyofNorwegianhigh-qualityaluminiumtoChinesemanu-
facturing.
Norwegianexportsofironandsteelarticles(hs73)havealsoshownastronggrowth,
increasingbyover52%from2005to2006.theseironandsteelarticlesaremainlyspecial
productsutilisedintheChineseshipbuildingindustry.dutyratesforsuchproducts
inChinaareintherangeof3–25%(averagedutyrangeisapproximately10%),clearly
indicatingthatasino-NorwegianftAwouldprovideimpetusforincreasedtrade.
Table 2-12 Metal products imports from China 2004–2006 (US$ million)
HS Description
2004 2005 2006
metalproducts(hs72–83excl.hs78&80) 156,4 185,4 222,2
73 Articlesofironorsteel 56,2 72,8 112,2
82 tools,implements,cutleryetc. 28,4 34,9 38,8
81 basemetalsnesoi;cermets;articlesthereof 50,8 47,7 30,9
83 miscellaneousarticlesofbasemetal 10,6 14,6 19,6
76 Aluminumandarticlesthereof 8,4 9,6 11,1
72 Ironandsteel 1,5 4,7 7,9
74 Copperandarticlesthereof 0,3 0,6 0,9
79 Zincandarticlesthereof 0,3 0,4 0,7
75 Nickelandarticlesthereof 0,002 0,005 0
sourceofdata:statisticsNorway
ImportsofmetalproductsfromChinahavegrownannuallyoverthelastnineyears.from
1997to2006theNorwegianimportsofmetalproductsfromChinahaveincreasedfrom
us$31,2milliontous$222,2million.IronandsteelarticlesfortheNorwegianoffshore
industrydominateChinesemetalexportstoNorway.Intheoffshoreindustry,Chinese
qualitysteelisutilisedforheavysteelconstructions.Anotherimportantcategoryof
metalproductsimportedfromChinaistoolsandcutlery.In2006,thevalueofsuch
importedproductswasapproximatelyus$38,8million,anincreaseof11,2%compared
to2005.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s42
2.3.5 Fish and marine products
fishing,aquacultureandfishprocessingindustriesareimportantcontributorstothe
economiesofChinaandNorway.
OverthelastfewdecadestheNorwegianwildcapturefishingindustryhasevolvedfrom
avirtuallyunrestrictedactivityintoahighlyregulatedindustrywithquotasandlicensing
requirements.theNorwegianfishingfleethasdevelopedinthedirectionoffewerand
moreefficientvessels.Atthesametime,Norwayhasacompositefishingfleetwith
respecttothesizeandtypeoffishingequipment–oceanfishingvesselsandalarge
numberofcoastalvessels.theNorwegianwildcapturefisheriesindustry,whichprovides
directemploymentforapproximately14,000people,isrepresentedbyadiversified
seagoingandcoastalfleetofapproximately7,300vessels.smallcoastalvesselsaccount
foraround6000ofthese.thetotalcatchesofNorwayvaryaccordingtoannualvaria-
tionsinthesizeofthemajorfishstocks,butamountedin2006to2,4milliontonnesper
year.sustainableresourcemanagementisfundamentaltotheNorwegianfishingpolicy.
simultaneously,fisheriesandfishingwillhelptosafeguardsettlementsandcreatenew
activityalongthecoast.
theNorwegianaquacultureindustryisamodern,internationallycompetitiveindustry
thatproduceshighqualityfoodinanefficientmanner.Atlanticsalmonandrainbow
troutarethedominatingspeciesintheaquacultureindustry.however,extensivedevel-
opmentistakingplacewithaviewtowardfarmingseveralnewspecies,suchascod
(gadus morhua),halibut(hippoglossus hippoglossus),wolffish(anarhichas spp.)and
shellfish.
AlicencefromtheauthoritiesisrequiredtofarmfishandshellfishinNorway.environ-
mentalconsiderationsandeffortsrelatedtofishhealthandwelfarearegivenhigh
priorityintheindustryandpublicadministration,andisanimportantconditionforthe
aquacultureindustry’sabilitytocompete.thefishfarmingindustryinNorwayholdsover
2,700licenses.
theNorwegianprocessingindustryconsistsofnearly700units,andemployapproxi-
mately10000people.
since2000China13hasseenastabledevelopmentofitsfishingindustries.In2004its
totalaquaticoutputreached47,5milliontonnes,whereof16,9milliontonnescamefrom
wildcapturefisheries.
Chinahasthelargestnumberoffishingvesselsandfishersintheworld.In2002the
numberofvesselswas220000.InrecentyearsChinesefisheriesauthoritieshavetaken
anumberofmanagementmeasures.
13 source:fAOfisheriesandaquaculturecountryprofile.
r e p O r t N O r WAy – C h I N A 43
In2004,theChinesemarinecultureoutput(includingaquaticplants)reached13,7
milliontonnes.shellfishconsiststhehighestoutput,whilethesecondlargestisseaweed.
productioninmarineculturetakesthreeforms:inthesea,onmudflatsandlandbased.
InadditionChinahasalonghistoryoffreshwateraquaculture.In2004,outputofinland
aquaculturewas18,9milliontonnes.Ininlandaquacultureoutputfinfishcontributed
17,2milliontonnes,or91%oftotaloutput.
In2004therewere8754fishprocessingplantsinChina.totalprocessedaquaticproduct
amountedto13,8milliontonnes.
ChinaandNorwayarerankedastheworldlargestandsecondlargestexportersof
seafood,respectively.Chinaplaysanimportantroleintheglobalproductionandtradein
fishandfisheriesproducts.In2006,China’sexportsoffishandfisheriesproductsreached
3milliontonnesvaluedus$9.4billion,anincreaseofrespectively17.4%and18.7%over
thelastyear.Astheworld’sfourthlargestimportmarketoffishandfisheryproductsat
present(euisconsideredasasinglecustomsterritory),China’simportsinthesecatego-
ries,mainlyfromeasterneurope,southAmerica,Japan,AustraliaandNewZealand,are
nowgrowingmorerapidlythanitsexports.In2006,China’simportsinthiscategory
reached3.3milliontonnesvaluedus$4.3billion.
thevalueofNorwegianexportsrepresentsaroundus$5.6billionperyear,andsupplies
majormarketsallovertheworld,ofwhichtheeuropeanunion,therussianandtheJapa-
nesemarketsarethemostimportant.fishexportsareNorway’ssecondlargestexport
commodity.salmonandtroutexportsaccountforalmosthalfoftheexportvalue.Other
importantcategoriesoffishproductsareherringandmackerel,traditionalproductslike
driedandsaltedfish,frozenandfilletedfish,andotherprocessedproducts.
Inthelastyears,tradeinfishandfisheriesproductsbetweenChinaandNorwayhas
substantiallyincreased.In2006,thetotaltradevalueinthissectorreachedus$190.2
million.
Table 2-13 Bilateral Trade of Marine Products14 between China and Norway
(US$ million)
SITC 03 2001 2002 2003 2004 2005 2006
China’sexports 3.8 2.4 4.9 6.7 12.6 23.1
Norway’sexports 54.8 78.9 97.6 126.6 171.1 167.1
totalvalue 58.6 81.3 102.5 133.2 183.7 190.2
source:statisticsNorway.
frozenmackerel(hs03037400),frozencod(hs03036000),frozenfish,nes(hs
03037990),frozenhaddock(hs03037200),andAtlanticsalmon(hs03021210)are
themostimportantfisheriesproductsChinaimportsfromNorway.Norway’sexport
14 marineproductsrefertothecommoditiesunderthedivision03ofsItC,includingfish,crustanceans,molluscsandaquaticinvertebrates,andpreparationthereof.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s44
ofsalmontoChina,whichstartedin1998,hasbeengrowingveryrapidly.Atpresent,
ChinaisthetenthbiggestimporterofNorway’ssalmonandthebiggestoneintheAsian
market.About90%oftheimportedAtlanticsalmononChina’smarketcomesfrom
Norway.ConsideringtheupgradingofChinesecitizens’consumptionlevelandthehuge
domesticmarketofChina,Norway’sexportsofsalmonandothertopgradefishand
fisheryproductstoChinaareexpectedtogrowcontinuouslyinthefuture.
Table 2-14 China’s Main Marine Products Imports from Norway (2006)
(US$ million)
Frozen mackerelFrozen cod (excl.
livers & roes)Frozen fish, nes Frozen haddock Atlantic Salmon
73.4 27.2 26.3 23.3 22
source:China’sCustomstatistics,2006.
China’simporttariffsforfisheriesproductshavedroppedfromapre-WtOaccession
averageof15.3%to11.0%in2005.thehighesttariffrateforafisheriesproductwas
23.6%in2005.17items,accountingfor10%ofalltheimportedfisheriesproducts,are
exemptfromtariffs.
AreasonfortheincreaseoftheNorwegianexportistheincreaseintheconsumption
ofseafoodinChina.AnotherreasonisincreaseddemandforrawmaterialstoChina’s
growingfishprocessingindustry.theprocessedproductsarere-exportedmainlyto
Japanandtheeuropeanunion.thegrowingdemandfromChineseconsumersandthe
processingindustryhasmadeChinaintoaworldleadingproducerandexporteroffish
andfisheriesproducts.
today,NorwegianexportersoffishandfishproductstoChinaarefacingtariffsbetween
10and18%,dependingonthespeciesandlevelofprocessing.Withtheexceptionofa
verylimitednumberoflines,Norway’sfinalboundrateonfishandfishproductsiszero.
removingtariffsandotherbarrierswillfacilitatetradeinfishproducts,resultingin
economicbenefitstobothcountries.therewillbebenefitsfortheconsumersofboth
countriesintheformoflowerpricesandaccesstoawiderrangeofproducts,andthe
improvedopportunitiesaffordedtoexportersthroughaccesstomarketswillinturn
stimulategreatereconomicactivityinbothcountries.technologyandinvestment
exchangesthataccompanytheflowoffishproductswillalsoleadtoproductivitygains.
theeliminationorsubstantialreductionofChina'simporttariffoffishandfishery
productswillpossiblyincreaseNorwegianexporttoChina.takingintoaccountfishery
products'natureofreplacement,thismighthaverelevantimpactonChina'sfishery
productionandfisherman'sincome.Inthisregard,thesesensitivitiesshouldbetaken
intoaccount.
r e p O r t N O r WAy – C h I N A 45
Infebruary2006,thegovernmentofChinaissuedaProgramme of Action on Conserva-
tion of Living Aquatic resources of China.Itaimstoreversethetrendofdeteriorationofthe
aquaticenvironment,declineoffisheriesresourcesandtheincreasingnumberofendan-
geredspecies,reduceovercapacityandimprovetheefficiencyoffishingoperationsand
economicbenefits.Accordingtothisprogramthecatchwillfallfrom13.1milliontonnes
in2002to12milliontonnesin2010.
thedifferentaspectsoftradeliberalisationinthefisheriessectordescribedabove
shouldbeaddressedinthefutureftAnegotiations.
bilateraltradeinfishandfishproductsbetweenthetwocountriesiscontinuouslydevel-
oping.Afreetradeagreementwillcontributepositivelytothefurthercooperationand
developmentofthefisheriesandaquacultureindustriesinbothcountries.
2.3.6 Agriculture products
Chinaisoneofthebiggestagricultureproductproducersintheworld,withthe
productionofseveralkindsofprimaryagricultureproductsrankingthefirst,suchas
cotton,pork,poultry,fruitsandvegetables.Chinaalsoplaysakeyroleintheinterna-
tionalagricultureproductstrade.Atpresent,Chinaistheworld’sfourthlargestimporter
andthefifthlargestexporterofagricultureproducts.lateststatisticsfromministryof
Agricultureshowthatthetotalvalueofagricultureproducttradereachedus$63.5
billionin2006,ofwhich,exportaccountedforus$31.4billion,importaccountedfor
us$32.1billion.
Asahigh-cost,low-potentialactivity,agriculturalproduction,especiallythegrain
productioninNorwayhasbeenlargelydependentondirectandindirectgovernment
support.thisisi.a.dictatedbyfactorssuchastheharshclimateanddifficulttopog-
raphy,sincealmost3/4thofNorway'slandisunproductiveandlessthan4%isunder
cultivation.Atpresent,theagricultureproductionofNorway,whichisdominatedby
stockbreeding,contributeslessthan2%tothegdpofthecountry.Althoughalmost
beingself-sufficientinmeat,poultryanddairyproducts,Norwayimportsmorethan
50%ofitsfoodproducts.
In2006,agricultureaccountedforanemploymentofabout63,000man-yearorlessthan
3%oftotalemploymentinNorway.however,thefarmsectorisstillveryimportantin
manymunicipalitiesinNorway.
thefoodindustryisresponsibleforalargeshareofthefoodbeingprocessed.thesector
playsasignificantrolewithregardtovaluecreation,employmentandasabuyerand
processorofagriculturalcommodities.thefood,beverageandtobaccoindustryisthe
secondlargestindustrialsectorinNorway,surpassedonlybytheengineeringindustry.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s46
thedegreeofself-sufficiencyandtheshareoffoodconsumptionproducedbyNorwe-
gianagricultureisaround50%.exportisinsignificantforallproductsexceptcheese.this
illustratesthatNorwegianagriculturalfoodproductionisaimedatthedomesticmarket.
Importsarehighestforthosecommoditiesthatcannotbeproducedinsufficientquanti-
tiesduetothenaturalconditions.theseareprimarilysugar,rice,fruits,vegetables,wine
andspirits.
theimportsofagriculturalgoodsaresteadilyrisingandin2006theimportvalue
exceededus$3.9billion.
Diagram 2-2 Imports of agricultural goods to Norway (Million USD)
sourceofdata:statisticsNorway
thebilateraltradeofagricultureproductsbetweenChinaandNorwayhasbeen
witnessingarapidgrowthinrecentyears,notonlyinvalueandquantity,butalsoin
productcategories.themainagricultureproductsChinaexportstoNorwayinclude
fruits,vegetables,grains,sugarandhoney,whileanimalfoodstuffsdominateNorway’s
exportstoChinainthesecategories.In2006,thetotaltradevalueofprimaryagriculture
productsbetweenChinaandNorwayreachedus$27million,amongwhichChina’s
exportstoNorwayamountedtous$24.5million,andNorway’sexportsto
Chinareachedus$2.5million.
Table 2-15 Trade of Primary Agriculture Products* between China and Norway
(US$ million)
China’s exports Norway’s exports
2001 8.2 0.7
2002 9.5 1.9
2003 12 1.4
2004 18 1.9
2005 20 2.3
2006 24.5 2.5
*fishandfisheryproductsareexcludedfromprimaryagricultureproducts.source:statisticsNorway.
0
500
1000
1500
2000
2500
3000
3500
4000
LDC
GSP
EU
Other countries
2006200520042003
r e p O r t N O r WAy – C h I N A 47
Withregardtotheimportregimeforagriculture,Norwaymaintainsacomparatively
highlevelofprotection,butthetariffstructureisnotsotransparentduetotheexten-
siveuseofspecifictariffs,i.e.tariffsexpressedinNOK/kgorthelike,whichconstitutesan
importantimpedimenttotheexportofChina’sagriculturalproducts.Atpresent,28%
ofNorway’starifflinesinagricultureareabove100%,and10%areabove300%.based
onWtOcalculations,theaverageofmfNappliedtariffsis39%.theleastdeveloped
Countrieshavezerotariffs,otherdevelopingcountriesobtain10–15%tariffreductions
comparedtothegeneraltariffsunderthegspsystemoftariffpreferences.tariffrate
quotasprovidesomeincreaseinmarketaccess.
theaveragetarifflevelofChinaforagriculturalproductsis15.2%in2006.Amongallthe
tariffitemsofagriculturalproducts,81areexemptfromduty,andthehighesttariffrate
is65%.tariffsinthe0–20%rangeareimposedon76%ofalltheimportedagricultural
products.Currently,ChinaappliestrQsonanumberofagriculturalproducts,including
wheat,maize,rice(whetherornotbusked),sugar,wool,wooltopsandcotton.
thebilateralagriculturaltradebetweenChinaandNorwayiscomparativelylimitedat
present.thefutureftAmustcontinuetogiveopportunitiesforagriculturalproduc-
tioninNorwayandChina,butatthesametimecreatenewpossibilitiestoenlargethe
bilateralagriculturaltrade.removingandreducingtariffsandotherbarriersinagricul-
turaltradewillallowthetwocountriestosharethepotentialbenefitsfromliberalisa-
tion,includinglowerpricesandaccesstoawiderrangeofagriculturalproductsfor
consumers,andimprovedopportunitiesforexportersthroughimprovedaccessto
markets.Apartfromthat,theftAwillalsopromoteagriculturaltechnologycooperation
andexchangebetweenChinaandNorway,thusimprovingtheagriculturalproduction
ofthetwocountries.
thedifferentaspectsoftradeliberalisationintheagriculturalsectordescribedabove
shouldbeaddressedinthefutureftAnegotiations.
2.4 Overall impact of liberalizing trade in goods
thestudyhasdemonstratedthatChinaandNorwayenjoytoalargeextentcomplemen-
taritiesintheirgoodstrade.however,arangeoftariffandnon-tariffbarrierscurrently
impedesbilateraltrade.tariffbarriersaretheeasiesttoquantifyandeliminate.Non-tariff
barriersareofamuchgreatervarietyandincludenotonlyissuesregardingproduct
standardsandcross-borderformalitiesandprocedures,butalsoissuesonimplementa-
tionoflawsandregulations.liberalisinggoodstradebyaddressingbothtariffsandnon-
tariffmeasureswillbeakeycomponentofthefutureftAbetweenChinaandNorway.
Inbroadterms,theliberalisationoftradeingoodswillpromotetheeconomicdevelop-
mentofChinaandNorway,asaresultofproductivityimprovementslinkedtoincreasing
competitionandopportunitiestoexploiteconomiesofscaleinthelargermarket,and
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s48
re-allocationofresourcesbetweenindustriesassociatedwithincreasingproductspecial-
isationinlinewithcomparativeadvantage.therefore,thebenefitsbroughtaboutby
theftAwouldincludelowerpricesandincreasedchoiceofconsumergoodsandinputs
intoproductionprocesses,andimprovedmarketaccessopportunitiesforexporters.
morespecifically,anftAwouldexpandbilateraltradeinareaswhereeachcountry
hascomparativeadvantage.InthecaseofNorwaythiswouldincludefishandmarine
productsaswellastechnologicalproductsrelatedtothefisheriesindustry;petroleum
andgasrelatedproductsincludingtheupstreamsupplyindustryaswellasthechemical
productsofthedownstreamindustry;andmetals,machineriesandequipmentforthe
Chineseconstructionandshipbuildingsectors.InthecaseofChinalabourintensive
manufacturessuchastextileandapparel,machineryandelectronicequipments,aswell
asprimaryagricultureproductsareimportant.thesectoralsurveysoftradeinmachinery
andelectronicequipment,textilesandapparel,petroleumandchemicals,metals,fish
andfisheryproducts,andprimaryagricultureproductsillustratesomeofthenetbenefits
ofexpandingmarketaccessforgoodsbetweenChinaandNorway.
AnftAwouldbeexpectedtoeliminatealltariffsonindustrialgoodsbetweenChina
andNorwayasearlyaspossibleandmaketariffeliminationandreductionsforagricul-
turalproducts,whileensuringthatnon-tariffmeasuresarenotmoretrade-restrictive
thannecessarytofulfillegitimatenationalpolicyobjectives.theimpactofanftAon
theindustrialandagriculturalsectorsinbothcountrieswillalsodependontherespec-
tivestrengthsandcomparativeadvantagesofthesesectorsinChinaandNorway.In
thissense,thepotentialimpactsoffurtherliberalisationofgoodstradeonbothcoun-
triesindifferentsectorsshouldbetakenintoaccountinfutureftAnegotiations.the
possibilitiesfortradeliberalisationaswellassensitivitiesinindividualsectorsshouldbe
addressedinthefuturenegotiations.
Annex 1
The Exchange Rate of Norway’s Krone used in this study
(US dollar)
2001 2002 2003 2004 2005 2006
NOK 8.99 7.98 7.08 6.74 6.44 6.41
Note:directquotation,perusdollar.source:Imf,Internationalfinancialstatistics,2001-2006.
49
Chapter three: Impact of trade liberalisation on services
tradeinservicesisbecominganincreasinglyimportantelementoftheoverallbilateral
economicrelationshipbetweenChinaandNorway.thischapterprovidesanoverview
ofregulatorymeasuresaffectingtradeinservicesbetweenthetwocountries,andhigh-
lightstheopportunitiesandchallengesofservicestradeliberalisationthrough
apossiblebilateralftA.
3.1 An Overview of Chinese Trade Policies Applying to Services
Whileenjoyingrapidandstableeconomicgrowthinrecentyears,Chinahasrestructured
itseconomytoincreasetheweightofitsservicesector.Nevertheless,theproportion
oftheservicessectorasapercentageofgdpinChinaismuchlowerthanthatinmost
developedcountries.bytheendof2005,theserviceindustryaccountedforabout41%
ofChina’sgdp.themajorservicesactivitieswerewholesaleandretailtradeandcatering
services(about24%ofthetotal),financeandinsurance(17%),andsocialservices(13%).
Atpresent,theemploymentintheservicesectorsaccountsforabout31.5%ofChina’s
totalemployment.
China’stradeinserviceshascontinuedtomaintainasteadyrateofgrowthinrecent
yearsofapproximately15%annually.lateststatisticsfromtheministryofCommerceof
Chinaindicatethatin2006,thetotalvolumeofChina’sservicestradereachedus$191.8
billion,ofwhich,exports(orrevenue)accountedforus$91.4billion,imports(orexpense)
accountedforus$100.3billion.Atpresent,China’sservicesimportsandexportsrank7th
and8thintheworldandcomprise3.8%and3.2%respectivelyoftheworld’stotalserv-
icesimportsandexports.
In2006China’simportsandexportsofservicesmainlyconcentratedontravel,
transportationandotherbusinessservices,whichaccountedfor30.4%,28.9%and
16.1%respectivelyofthegrossimportsandexportsvolumeoftradeinservices,
andtogethertheyaccountedfor75.4%ofthetotal.thesharesoffinance,and
communicationsservicesweremuchsmaller,accountingfor0.5%and0.8%respectively
ofthegrossimportsandexportsvolume.thiswasattributabletotherelativelarge
importandexportscaleofChina’stradeingoods.thetraditionalsectorsoftradein
servicesthataredirectlyrelatedtoimportsandexportsofgoodshavedevelopedbetter,
whilethetechnologyandknowledge-intensivesectorswithhighaddedvaluesuchas
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s50 I m pA C t O f t r A d e l I b e r A l I s At I O N O N s e r V I C e s50
financing,insurance,consultancy,computerandinformationserviceswerestillatthe
initiatingstagewithweakinternationalcompetitiveness.
travel,transportation,otherbusinessservices,consultancy,computerandinformation
servicestookthelargestshareinexportsofservices,rankingtopfiveinexportsof
servicesrespectively;transportation,travel,otherbusinessservices,insuranceand
consultancyarethetopfiveimportedservicesrespectively.
Table 3-1 China’s exports of services 2004–2006 (US$ Million)
Description Year % Change
= 2004 2005 2006 2006/2005
services(total) 62055 73909 91419 23.7
transportation 12067 15427 21015 36.2
travel 25739 29296 33949 15.9
Communicationservices 440 485 738 52.2
Constructionservices 1467 2593 2753 6.2
Insuranceservices 381 549 549 0.0
financialservices 94 145 145 0.0
Computerandinformationservices 1637 1840 2957 60.7
royaltiesandlicensefees 236 157 204 29.9
Consulting 3153 5322 7834 47.2
Advertising,publicity 849 1076 1445 34.3
film,audiovisual 41 134 137 2.2
Othercommercialservices 15951 16885 19693 16.6
source:balanceofpaymentsofChina,excludinggovernmentservices.
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Table 3-2 China’s imports of services 2004–2006 (US$ Million)
Description Year % Change
= 2004 2005 2006 2006/2005
services(total) 71602 83173 100326 20.6
transportation 24544 28448 34369 20.8
travel 19149 21759 24322 11.8
Communicationservices 472 603 764 26.7
Constructionservices 1339 1619 2050 26.6
Insuranceservices 6124 7200 8831 22.7
financialservices 138 159 891 460.4
Computerandinformationservices 1253 1623 1739 7.1
royaltiesandlicensefees 4497 5321 6634 24.7
Consulting 4734 6184 8389 35.7
Advertising,publicity 698 715 955 33.6
film,audiovisual 176 154 121 -21.4
Othercommercialservices 8478 9388 11261 20.0
source:balanceofpaymentsofChina,excludinggovernmentservices.
sinceChina’saccessiontotheWtO,theChinesegovernmenthastakeneffectivemeas-
urestoliberalizetheservicesmarket.AllthemarketaccesscommitmentsintheWtOin
thefieldoftradeinserviceshavebeenimplementedthroughtherevisionandadoption
ofsector-specificlaws,administrativeregulationsanddepartmentrules.thelevelof
marketaccessforforeignservicessuppliershasbeensignificantlyincreased.bytheend
of2006,Chinahasopenedmorethan100servicessectors,accountingfor62.5%ofthe
WtO’sservicesectoralClassificationlist(W/120).ConsideringChina’sstatusasadevel-
opingeconomy,theservicesmarketofChinaisquiteliberalised.Currently,Chinaisposi-
tivelyparticipatingintheWtOddAnegotiationsonservicesandmakesnewcommit-
mentsinbusinessandtransportservices.
theprovisionsintheProtocol on the Accession of the People’s Republic of Chinatothe
WtOhaveestablishedtheprimaryprinciplesinwhichChinalegislatesintheservices
sector,includingdetailedregulationsoncommercialpresenceandmovementofnatural
persons.Aseriesofnewlawsandregulationsrelatedtoserviceshavealsobeenpromul-
gatedsinceChina’saccessiontotheWtO,suchasRegulations on Representative Offices of
Foreign Law Firms in China, Regulation on Chinese-foreign Cooperation in Running Schools,
Regulations on Management of Telecommunication Enterprises with Foreign Capital, Regula-
tions on Financial Institutions with Foreign Capital, Regulations on Insurance Company with
Foreign Capital, Regulations on International Maritime.furtherliberalisationofservicesin
Chinaisanticipatedtocontinueinaprogressiveandmanageableway.
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Inrecentyears,Chinahasalsobeenmakinggreateffortstopromoteservicestrade
liberalisationundertheframeworkofregionalandbilateraleconomiccooperation.The
Agreement on Trade in Services of the Framework Agreement on Comprehensive Economic
Co-Operation between China and ASEANwassignedinJanuary2007,whichisthefirst
agreementontradeinservicesunderaftAframeworkbetweenChinaandothercoun-
tries.ChinaandtheAseANcountrieswillfurtheropentheirservicessectors,providing
improvedmarketaccessforeachotherfollowingtheagreement.undertheagreement,
Chinahasmadefurthercommitmentsforliberalisationinbusinessservices,construction
andrelatedengineeringservices,environmentalservices,culturalandsportingservices,
andtransportservicestotheAseANcountries.sincethelaunchoftheCepAswithhong
Kongandmacaoin2004,twenty-sevenservicesectorsonthemainlandofChinahave
beenopenedtohongKongandmacao.forty-fourcitiesonthemainlandhavestarted
individualtouristbusinessesfortraveltohongKongandmacao.Over1400individuals'
professionalqualificationintheareasofconstruction,accountingandmedicalservices
havebeenmutuallyrecognizedbetweenthemainlandandhongKong.besides,the
concludedandunder-negotiationftAsbetweenChinaandChile,Australia,NewZealand,
singaporeandIcelandalsocovertheissueofservicestradeliberalisation.
3.2 An overview of Norwegian trade policies applying to services
todaythemajorityofNorway’sworkforceisemployedintheservicesectorandthe
servicesector’sshareofthegdpis56,3%.Norwayisdependantonbuyingadvice,infor-
mation,leisureactivities,transportandotherservices.goodsandserviceproductionis
connectedthroughvaluechains.goodsarenotjustproduced;theyarealsodeveloped,
designed,marketed,soldandtransported.manyNorwegiancompaniesoperatesuccess-
fullywithinseveralaspectsofthisvaluechain.Ahighlyskilledworkforceisakeyresource
formostofthem.
Althoughthestatehasreduceditsshareholdingsinanumberofenterprises,state
ownershipintheservicessectorremainssubstantial,particularlyinfinancial,telecom-
munication,healthandculturalservices.
In2006,Norwayexportedservicesforapproximatelyus$31billion.Allinall,servicesare
oneofNorway’smostimportantexports,accountingforjustlessthanonequarter(22%)
ofNorway’stotalexports.
theNorwegianservicesindustryhastoalargeextentdevelopedinresponsetothe
needtoutiliseNorway’srichnaturalresourcesandovercomethechallengesposedby
aharshclimateanddifficultgeography.longwinters,difficultterrain,andtheworld’s
harshestseasallhavetobeovercome.thisrealityisreflectedinthecompositionof
theNorwegianservicessector.fieldswhereNorwegianfirmshavespecialisedinclude
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marinetechnology,shipping,hydropower,mineralresourcesengineering,aquaculture,
thefisheriesindustry,forestry,andtheoilandgasindustry.
Norwegianserviceproviders,beingtechnologicallyadvanced,arealsocompetitivein
hightechindustriessuchassoftwareandcommunicationstechnology,space-related
technology,theengineeringindustry,andbiotechnology.
theshippingindustryaccountsforroughlyhalfofNorwegianservicesexports(2006).
Norwayiseurope’smostdiversifiedmaritimenationandcommandsworldwiderespect
foritsshippingexpertise,equipmentandabilitytoexploitnewmarketniches.Norway’s
overallmaritimeeconomy–anexpandingclusterofindustrieslinkedtoshippingand
theaquacultureindustry–encompassesanincreasinglywidevarietyofproductsand
services.Norwayaccountsfornearly10%oftheglobalshippingfleet,andhasoneofthe
largestmerchantfleets.
thesecondlargestNorwegianservicesexportis“otherbusinessservices”andfinancial
services.Norwegianfirmsexportanincreasingnumberofservices,inareasasdiverseas
financeandinsurance,legalandauditingservices,marketingandpublicrelations,and
managementconsulting.
Whenitcomestopetroleumresourceextraction,Norwayisaworldleaderinboth
thetechnologicalandenvironmentalfields.theoilandgasindustryaccountsforthe
majorityofNorwegianexportearnings,andthespin-offeffectsboostinnovationand
technologicaldevelopmentinotherNorwegianindustrysectors.forexample,Norway
hassomeoftheworld’sforemostexpertisewhenitcomestosubseatechnology.
duetoitsmountainousterrain,Norwayhasdevelopedengineeringexpertiseincreating
undergroundfacilities,includinghydropowerplants,oilstoragefacilities,watertreat-
mentworks,undergroundstations,militaryinstallationsandsportsfacilities.Nearlyhalf
oftheworld’s400undergroundpowerplantsarelocatedinNorway.roadconstruction
inacountryofmountainsandfjordsisalsoachallenge,andNorwegiangeologicalengi-
neershaveovertimedevelopedgreatexpertiseincavernexcavation,bridgeconstruc-
tion,knowledgeofrockproperties,geologicalanalysis,drillingandblasting.
Norwegianbuildingandconstructionindustryhasattractedinternationalattentionfor
itsinnovativedesignandexceptionalproducts.Norwegianarchitectshavewoninter-
nationalacclaimfortheirmodernapproachtotraditionalmaterialssuchaswood,stone
andmetal.
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Table 3-3 Norwegian exports of services 2004–2006 (US$ million)
Description Year % Change
2004 2005 2006 2006/2005
services(total) 22731,1 27564,4 31103,3 12,8
transportation 12522 14477,9 14382,2 -0,7
travel 2681,3 3133,8 3413,0 8,9
Communicationsservices 289,3 355,6 367,0 3,2
Constructionservices 104,4 238,7 351,2 47,1
Insuranceservices 301,2 320,8 303,4 -5,4
financialservices 534,8 689,9 717,2 4,0
Computerandinformationservices 509,2 845,5 1170,6 38,4
royaltiesandlicensefees 217,7 492,9 718,2 45,7
Otherbusinessservices 5136,5 6478,8 9037,6 39,5
personal,culturalandrecreationalservices 166,4 330,1 440,6 33,5
governmentservices,n.i.e. 268,3 200,3 202,2 0,9
sourceofdata:Imf
Norwayimportedservicesin2006forapproximatelyus$30billion.thelargestNorwe-
gianservicesimportsaretravel(accountedforroughlyonethirdofservicesimportsin
2005),shippingrelatedservices,businessservicesandfinancialservices.
Norwegianservicesimportsaregrowingbyanaverageofalmost10%annually
(2003–2006).thelargestincreasesarefoundinoil-relatedservicesandinthetravel
industry.someofthegrowthisfuelledbytheeuexpansion,withserviceproviders
enteringthecountryfreelyfromtheneweumembers,combinedwithincreased
demandforforeignlabour,particularlyintheconstructionbusiness.
Table 3-4 Norwegian imports of services 2004–2006 (US$ million)
Description Year % Change
2004 2005 2006 2006/2005
services(total) 21868,4 27793,2 29600,8 6,5
transportation 7610,6 8975,2 8841,2 -1,5
travel 7638,3 9577,1 10767,9 12,4
Communicationsservices 209,8 268,5 282,5 5,2
Constructionservices 35,3 39,0 46,5 19,1
Insuranceservices 395,3 392,0 137,5 -64,9
financialservices 1061,9 1163,6 1117,6 -4,0
Computerandinformationservices 515,1 1063,4 1135,9 6,8
royaltiesandlicensefees 397,9 437,7 522,1 19,3
Otherbusinessservices 3269,7 4698,4 5496,7 17,0
personal,culturalandrecreationalservices 345,0 490,1 563,0 14,9
governmentservices,n.i.e. 389,5 688,0 689,6 0,2
sourceofdata:Imf
r e p O r t N O r WAy – C h I N A 55r e p O r t N O r WAy – C h I N A 55
Trade in services in the WTO
NorwayhasmadespecificcommitmentsunderthegAtsinallservicecategoriesexcept
audiovisuals,health-relatedandsocialservices.Norwayhasbound–withafewlimita-
tionsonmarketaccessandnationaltreatment–measuresaffectingcross-bordersupply,
consumptionabroad,andcommercialpresenceforanumberofservices,including
telecommunications,constructionandrelatedengineeringservices,anddistributionand
transportservices.Norwayhasanopenandliberalregimewithrespecttocommercial
presence.measuresaffectingpresenceofnaturalpersonsremaingenerallyunbound,
exceptasindicatedunderNorway’shorizontalcommitments.Intheongoingservices
negotiations,Norwaygenerallygivesprioritytoclosingthegapbetweenexistinglevels
ofliberalisationandtheboundcommitmentsinthegAts.sectorally,Norwaygives
prioritytoameaningfulliberalisationandfullintegrationofmaritimetransportservices
inthegAts,andtocommitmentsforenergyservices,telecommunicationservices,finan-
cialservices(especiallymarineandenergyinsurance),computer,construction,architect
andengineering,environmental,legalandairtransportservices.Norwayhasofferednew
commitmentsinanumberofservices,anexpansionofthescheduleofhorizontalaswell
assector-specificcommitments,alreadyimplementedattheeeAlevel.
Trade in services under the EEA Agreement
AccordingtotheeeAAgreementArticle3,4,31–39,restrictionsonthefreemovement
ofservicesandthefreedomofestablishmentofnationalsofaneCmemberstateoran
eftAstateintheterritoryofanyotherofthesestates,isprohibited.AnnexesVIII-XIofthe
eeAAgreementcontainspecificprovisionsontherightofestablishmentandAnnexes
IX-XIcontainspecificprovisionsonthefreedomtoprovideservices.
Trade in services in Norway’s free trade agreements
InlinewithNorway’sactiveinvolvementinotherinternationalfora,theNorwegianeftA
ftAsnowincludeprovisionsfortheliberalisationoftradeinservices.Inthemoreambi-
tiousagreements,thesecoverallmodesofservicesupplyandcontainseparatesections
orannexesrelatingtospecificsectors,e.g.financialservicesandtelecommunications.
theybuildonthegeneralAgreementontradeinservices(gAts)andfollowasimilar
approach,complementedbyenhancedspecificcommitments.
Norway’seftAftAswitheuropeanandmediterraneancountriesallcontainanevolu-
tionaryclauseonservicesandinvestmentwiththeaimofachievinggradualliberali-
sationandthemutualopeningofmarketsforinvestmentsandtradeinservices.
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3.3 Current trends of trade in services between China and Norway in specific sectors
3.3.1 Air transport services
Afterthelaunchofthereformandopening-updrive,China’scivilaviationindustry
enteredanewperiodofsustainedandrapiddevelopment.today,ithasformedan
airtransportnetworkradiatingtovariousdirectionsandlinkingmaincountriesand
regionsaroundtheworld.Accordingtothe11thfive-yearplan,airtransportservices
areexpectedtogrowatananuallyrateover12%atleastuntil2010,andthevolumeof
airtransportinChinaispredictedtobeasmuchasfivetimesitscurrentlevelby2022.
themainagencyresponsibleforthegovernanceofthecivilairtransportsectoristhe
generalAdministrationofCivilAviationinChina(CAAC).
AccordingtoChina’sWtOcommitments,foreignservicessuppliersarepermittedto
establishjointventureaircraftrepairandmaintenanceenterprisesinChina.theChinese
sideshallholdcontrollingsharesorbeinadominantpositioninthejointventures.
licensesfortheestablishmentsofjointventuresaresubjecttoaneconomicneedstest.
furthermore,withregardtorelatedlawsandregulations,foreignownershipofChinese
airlinesispermittedupto49%whileasingleforeigninvestor’sshareshouldbenomore
than25%.
theAgreementonCivilAirtransportbetweenthegovernmentofthepeople’srepublic
ofChinaandthegovernmentoftheKingdomofNorwaywassignedin1973andhas
subsequentlybeenamendedseveraltimes.thishasgreatlyfacilitatedthefriendly
contactsbetweenthepeoplesofNorwayandChina.Inrecentyears,airlinksbetween
Chinaandscandinaviahaveseenrapidgrowth.furtherstrengtheningbilateralcoopera-
tiononairservicesundertheframeworkoftheftAwillbeinstrumentalinsupporting
thecross-bordertrade,investmentandtourismgrowth.
3.3.2 Maritime transport services
maritimetransportisagrowthindustry,whichisexpandingwithincreasedtradein
goodsandglobalization.AccordingtouNCtAdfiguresthemaritimetransportvolume
grewby52%from1990to2005and13,5%from2000to2005.
themaritimetransportindustryisatrulyglobalactivitywithinternationalrulesfor
safety,security,environmentandsocialconditionsthroughtheInternationalmaritime
Organization(ImO)andtheInternationallabourOrganization(IlO).thisindustryis
basedoninternationaldivisionoflabourwherethefactorsofproductionsuchasships,
equipment,crew,financing,insuranceandclassificationaresourcedininternationaland
competitivemarkets.
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maritimetransportisanimportantfacilitatorofworldtrade.morethanfour-fifthsof
worldtradebyvolumeiscarriedbysea.morethanpurelyafacilitator,maritimetransport
isalsoasignificantexportableserviceinmanycountriesincludingNorwayandChina,
andmakedirectcontributionstothenationalgdp.Inviewofitsimportance,forNorway,
substantiveliberalisationofthemaritimetransportservicesectorisessentialalsoin
multilateralandbilateraltradenegotiations.
Accesstoaglobalnetworkofreliable,efficientandcost-effectivemaritimetransport
servicesisbeneficialtoalleconomies.restrictionsonmaritimetransportservicescan
adverselyaffectanumberofeconomicfactors,includingexportandimportprices,and
thelocationofforeigndirectinvestment.liberalisationisthekeytoreducingmaritime
transportcosts,providinggreaterchoicestoshippers,andensuringfastandefficient
deliveries.liberalisationinthesectorwillalsoencourageforeigninvestment,which
willnotonlyenhanceemploymentopportunitieswithinthesectoritself,butwillalso
promotethegrowthofotherrelatedservicesectors.themultipliereffectofthemaritime
transportservicesectorextendstoactivitiessuchasshiprepairandmaintenance,ship
classification,distribution,professionalservices,communicationsandbankingandinsur-
anceservices.
Norway
maritimetransportisanimportantsectorforNorway.theNorwegianfleetranksno6
intheworldandiscomprisedof1665vesselsmeasuring45milliondeadweighttons
(dwt)accordingtouNCtAdfiguresfrom1January2006.halfofthevalueofNorwegian
exportsofservicesisrelatedtomaritimetransport.theNorwegianfleetemploysome
58000seafarersofwhom20000areNorwegiansand38000foreigners.
NorwegianshippingcompanieshavediversifiedinterestsintheChinesemarkettrans-
portingavarietyofcargoesespeciallybyro-roandbulkvesselstoanumberofports.
thenumberofshipcallstoChineseportsbyNorwegianvesselstotalled1000in2005.
thismakesChinaanimportantmarketforNorwegianship-owners.someNorwegian
shippingcompanieshaveestablishedpresenceinChinaintheformofrepresentative
offices,jointventuresorwhollyownedcompanies.
thelasttenyears,Norwegianshippingcompanieshaveacquired50vesselsfrom
Chineseshipyards,andtheyhaveasofAugust200746vesselsonorderinChina.
theNorwegianshipowners’Association(NsA)hasformanyyearsco-operatedwiththe
Chinesegovernment,theChinashippinggroupandtheshanghaimaritimeAcademy
oneducationandrecruitmentofChineseseafarers.thiscooperationhasyieldedsuccess
andcurrentlysome1200ChineseseafarersareemployedonvesselsownedbyNorwe-
gianship-owners.theNorwegianshippingcompanieswouldliketobeabletooperate
asmanningagentsinChina,orsecondarily,tobemoreactivelyinvolvedintheChinese
manningagentsbusinesstosecuretheChineseseafarers’interests.
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China
themaritimetransportserviceindustryofChinahasbeendevelopingveryquicklyin
recentyears.by2005,China'sfleetwastheworld'sfourthlargestintermsofcarrying
capacityanditscontainerfleetrankedthefifth.thecountryplanstomakeitsocean-going
fleetthethirdlargestintheworldby2010.thetotaldeadweighttonnageofChinese-flag
flyingoceanvessels,whichis44millionatpresent,willreach100millionby2010.
theministryofCommunications(mOC)isinchargeofformulatingshippingandport
policies.thegoalsofChina’sshippingandportpoliciesincludeestablishingacompeti-
tivemaritimetransportmarket;buildingupaninternationallycompetitivecommercial
fleet;andformingamulti-functionalportsystem,takingintoconsiderationeconomic
developmentandsecurityconcerns.deregulationandreformmeasuresinthesector
includeupdatinglegislationinaccordancewithChina'sWtOcommitments,soliciting
opinionsfromforeignanddomesticenterprises;relaxinggovernmentcontrolon
domesticshippingenterprises;andencouragingforeignparticipationintheinter-
nationalshippingbusiness.
AccordingtorelatedregulationsofChina,foreignservicessuppliersarepermittedto
establishjointventureshippingcompanies.foreigninvestmentshallnotexceed49%
ofthetotalregisteredcapitalofthejointventure.theChinesesideshouldappointthe
chairmanofboardofdirectorsandthegeneralmanagerofthejointventure.
AbilateralagreementofshippingbetweenChinaandNorwaywassignedindecember
2004inshanghai,China.theagreement,whichincludes,amongotherissues,regulations
forhiringcrewandadherencetointernationallaw,isanimportantadditiontothetwo
countries'levelofcooperation.theNorwegianshippingindustryisheavilyinvolvedin
ChinaandtheagreementwillensurebetteraccesstotheChinesemarketsandmore
preferabledealsforNorwegiancompanies.AnftAbetweenChinaandNorwaycould
provideconsiderablescopeforfurthercooperationandmutualbenefitintheareaof
maritimetransportservices.
3.3.3 Energy services
Athrivingenergysector–includingenergyservices–istodayrecognisedasabasic
elementofeconomicwell-being.theavailabilityofvariedsourcesofenergyatcompeti-
tivepricescontributestoanation’sabilitytocompeteintheworldmarketplace.thereis
ahighcorrelationbetweenrisingormoreefficientenergyusageandeconomicgrowth,
increasedlifeexpectancy,andhigherstandardsofliving.moreover,modernenergy
servicesprovidethemeanstodevelopenergyresourcesinanenvironmentallysound
mannerandinwaysthatpromoteresponsibleandefficientdevelopmentanduseof
energyresources.
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thereisalreadyasubstantialdegreeofcooperationbetweenNorwayandChinainthe
energyfield,mainlyfocusingonoilandgasexploitationservicesandenvironmental
services.
Oil and gas exploitation services
Accordingtorelatedlawsandregulations,theownershipofmineralresourcesinChina
belongstothewholecountry,andthestateCouncilexertstheownershiponbehalfof
thecountry.toexploreorexploitmineralresources,theenterprisesmustapplyforthe
rightofexplorationandexploitationrespectively,andgothroughregistrationlegally.15
foreignerscanprovideoffshoreoil-fieldservicesonlyintheformofpetroleumexploi-
tationincooperationwithChinesepartners.16foreignerscanprovideonshoreoil-field
servicesonlyintheformofpetroleumexploitationincooperationwithChinaNational
petroleumCorp.(CNpC)indesignatedareasapprovedbytheChinesegovernment.In
ordertocarryoutapetroleumexploitationcontract,theforeignservicessuppliershould
establishabranch,subsidiaryorrepresentativeofficewithintheterritoryofthepeople’s
republicofChinaandgothroughregistrationformalitiesinaccordancewithrelevant
laws.thedomicilesofthesaidofficesshouldbedeterminedthroughconsultationwith
CNpC.furthermore,therenewableenergylawhasenteredintoforceon1January2006.
giventhatChinahassubstantialoffshoreproductionofpetroleum,onewouldexpect
thatNorwegianexportsofoilandgasrelatedservicestoChinawouldbelargerthan
whatisseentoday.OnereasonfortheseeminglymodestpresenceofNorwegianservice
providersinthisindustryintheChinesemarketmaybebecausesomeNorwegian
companiesoperatinginChinaareregisteredinsingapore.
AmemorandumofunderstandingbetweenNorway'sministryofpetroleumandenergy
andtheNationaldevelopmentandreformCommission(NdrC)ofChinaoncoopera-
tioninenergysavingandrenewableenergywassignedin2006.thepotentialforfurther
cooperationbetweenNorwegianandChinesecompaniesintheoilandgassectoris
significant,andwillbeanareaofpriorityinthefutureofsino-Norwegianeconomic
cooperation.
3.3.4 Construction (and related engineering) services
theconstructionsector’spositionandroleasapillarindustryinthenationaleconomyis
growingstrongerinChina.from2001through2005,thetotaloutputoftheconstruction
sectorgrewatanaverageannualrateof21.3%.theemployeesintheconstruction
sectoraccountedformorethan5.2%oftheemployedpopulationinthecountry.Nearly
onethirdoftherurallabourworkinginurbanareaswasintheconstructionindustry.In
2005,theaddedvaluerealisedbytheconstructionsectoraccountedfor5.5%ofgdp.
15 Article3ofMineral Resources Law of the People’s Republic of China.
16 Annex9ofthe Protocol of the People’s Republic of China on the Accession to the WTO.
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foreigninvestmentinconstructionandrelatedengineeringservicesarepermittedin
theformsofequityjointventures,contractualjointventuresandwhollyforeign-owned
enterprises17inChina.AccordingtoChina’scommitmentstotheWtOandrelatedlaws
andregulations,whollyforeign-ownedenterprisescanundertakethefollowingfour
typesofconstructionprojects:
•Constructionprojectswhollyfinancedbyforeigninvestmentand/orgrants;
•Constructionprojectsfinancedbyloansorinternationalfinancialinstitutionsand
awardedthroughinternationaltenderingaccordingtothetermsofloans;
•Chinese-foreignjointlyconstructedprojectswithforeigninvestmentequaltoor
morethan50%,andChinese-foreignjointlyconstructedprojectswithforeign
investmentlessthan50%buttechnicallydifficulttobeimplementedbyChinese
constructionenterprisesalone;
•Chineseinvestedconstructionenterpriseswhicharedifficulttobeimplemented
byChineseconstructionenterprisesalonecanbejointlyundertakenbyChinese
andforeignconstructionenterpriseswiththeapprovalofprovincialgovernment.
Norwegianconstructionservicesconstitutedapproximately4,1%ofgNpand8%oftotal
employmentinNorwayin2006.mostprovidersofconstructionservicesaresmallprivate
companies.thereareanumberoflargecompaniesinthebusiness,andsomeofthese
areforeignownedcompanies.6,5%oftheworkforceintheconstructionservicessector
hasmorethan12yearseducation,comparedtoanationalaverageof27%.themajor
changesintheconstructionservicessectorinrecentyearshavebeenincreaseduseof
foreignlabour,increaseduseofprefabricatedcomponentsinbuildings,increaseduseof
informationtechnology,improvedwastedisposal/recycling,andgovernmentdemands
onenergyefficiencyinbuildings.
CompaniesperformingconstructionworkinNorwayarerequiredtoberegisteredat
theNorwegianadministrativeregisteragencyunlesstheyareregisteredinanational
registryinaeucountry.
ConsideringthecomparativeadvantagesofNorwayindesignandprojectmanagement
andthatofChinainconstructionandlabourresources,constructionandrelatedengi-
neeringservicesindustryhasthepotentialtobecomeanimportantcontributortothe
bilateraltradeinservicesbetweenChinaandNorway.therefore,bilateralcooperation
shouldbefurtherenhancedinthissector.AnftAisexpectedtoaddressanumberof
barriersincludingmobilityofnaturalpersons,marketaccessissuesandrecognitionof
professionalqualifications,whichwouldcreateanimprovedenvironmentforthebusi-
nessinthisarea.
17 seealsoArticle2ofregulationsonAdministrationofforeign–InvestedConstructionenterprises.
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3.3.5 Educational services
AccordingtothestatisticsoftheministryofeducationofChina,therewerealtogether
141.087internationalstudentsstudyinginChina,up27.3%from2004.18
theprimaryadministrativedepartmentofeducationalservicesistheministryof
educationofthepeople’srepublicofChina.Jointschoolswithforeignmajorityowner-
shiparepermittedinChina.19Inaddition,foreigninstitutesandenterprises,representa-
tiveofficesofinternationalorganizationsandforeignnationalsresidinginChinaare
permittedtoestablishwhollyownedschoolstoprovidesecondaryandlowerlevel
educationservicesforchildrenofforeignnationalsresidinginChina.moreinformation
isavailableon
www.moe.edu.cn.
foreignemployeesinChinese-foreigncooperativeeducationalinstitutionsshould
complywithrelevantregulationsregardingemploymentofforeignersinChina.20detailedinformationisavailableinregulationsonthemanagementofemployment
offoreignersinChinaorthewebsite www.molss.gov.cn.
In1963,NorwayandChinasignedanAgreementonCulturalandeducationalCoop-
eration,whichisthefirstagreementofitskindthatChinaenteredintowithaWestern
country.sincethen,activitiesandcooperationinthesefieldshaveincreasedsubstan-
tially.AbilateralscholarshipprogrammeadministeredbytheresearchCouncilof
Norway(Nfr)andtheChinesescholarshipCouncilhasbeenimplementedsuccessfully
undertheframeworkoftheagreement.
meanwhile,bilateralresearchcollaborationisalsoongoinginawiderangeoffields.
AmemorandumofunderstandingforscientificandtechnologicalCooperation
betweentheChineseministryofscienceandtechnologyandtheresearchCouncil
ofNorwayhaspavedthewayforfurtherdiscussionsonprioritiesforscientificand
technologicalcooperationandsharingofinformation.polarandmarineresearchhas
alreadybeenidentifiedasareasofmutualinterest.In2006aletterofIntentbetweenthe
NorwegianministryofeducationandresearchandtheChineseministryofeducationon
Norwegian-ChineseCo-operationinthefieldofeducationwasconcluded.
thefutureftAwouldenhancethebilateraleducationalandresearchcooperation
betweenChinaandNorway,andfacilitatethemovementofstudentsandeducational
professionals.
18 China Trade in Services Report 2006,ChinaCommerceandtradepress,p.230.19 Annex9oftheprotocolofthepeople’srepublicofChinaontheAccessiontotheWtO.20 Article28ofRegulation of the People’s Republic of China on Chinese-Foreign Cooperative Education.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s62 I m pA C t O f t r A d e l I b e r A l I s At I O N O N s e r V I C e s62
3.3.6 Hotels and restaurants services (including travel and tourism)
foreignservicessuppliersmayconstruct,renovateandoperatehotelandrestaurant
establishmentsinChinaintheformofjointventuresorwhollyforeignownedsubsidi-
aries.thereisnospecialgeographicregistrationonforeignownedhotelsandrestau-
rants.foreignmanagers,specialistsincludingchefsandseniorexecutiveswhohave
signedcontractswithjointventurehotelsandrestaurantsinChinaarepermittedto
provideservicesinChina.
In2006,hotelandrestaurantservicesconstitutedapproximately1,1%ofgNpand3,1%
oftotalemploymentinNorway.hotelsandrestaurantsgenerateapproximatelyone
thirdoftotaltouristrevenuesinNorway.thesectorisimportantinmaintainingemploy-
mentinruralareas.parttimeworkers,youngemployeesandforeignworkers,constitute
alargeshareoftotalemployeesinthesector.
CompaniesinthehotelandrestaurantsectorinNorwayarerequiredtoberegistered
attheNorwegianadministrativeregisteragencyunlesstheyareregisteredinanational
registryinaeucountry.thereisnodiscriminationofnon-nationalcompanies.however,
managersarerequiredtopassawrittentesttobeallowedtorunahotelorrestaurant.
thetestisinNorwegian,andhenceimplicitlydemandsNorwegianlanguageskills.
The Approved Destination Status (ADS) Agreement
AmemorandumofunderstandingbetweenChinaandNorwayonVisaandrelated
IssuesConcerningtouristgroupsfromthepeople’srepublicofChinawassignedin
2004.Inthesameyear,NorwaygottheApproveddestinationstatusofChina.
theAdsagreementbetweeneuandChinawentintoforceintheautumnof2004.A
similaragreementbetweenNorwayandChinawassigned3ofJune2004andenteredin
toforceparallelwiththeeu-Chinaagreement.Visahandlingproceduresarefacilitated
andtheagreementenablesgroupsofpeopletotravelforthemerepurposeoftourism.
thishascontributedtoasignificantincreaseintheNorwegiantouristsector.In2007
fromJanuarytoseptember,Norwayissued4.440visasunderthisagreement,butthis
onlyrepresentsaproportionofallChinesetouriststravellingtoNorway,whoalsocan
gettheirvisasfromothermembers(eu)oftheschengenAgreement.
therehasbeenamarkedincreaseinthetwo-waytourismflowbetweenChinaand
Norwayinrecentyears.thisdevelopmentreflectsthegrowingimportanceofthehotels
andrestaurantsservicesforbothcountries.undertheframeworkofthefutureftA,China
andNorwayareexpectedtocooperatetopromotetourismbyexploringwaysandinitia-
tivestointroducegreaterconveniencetotourists,andprovidingthemwithmoresatis-
factoryhotelsandrestaurantsservices.
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3.3.7 Environmental services
theenvironmentalservicessectorincludesrefusedisposalservices,sewagesserv-
ices,sanitationservices,airpollutioncontrol,noiseandvibrationabatement,nature
andlandscapeprotectionservices,remediationandcleanupofsoil,surfacewaterand
groundwaterservices,aswellasdatacollection,analysisandassessment,amongstother
services.
partiallyduetoahistoryofrigorousenvironmentalregulations,theNorwegianmarket
forenvironmentalservicesisdiverseandadvanced,andtheNorwegianprovidersof
environmentalserviceshaveyearsofexperiencemeetingstrictrequirements.Norwe-
gianactorsholdspecialisedcompetenceinnichessuchasrenewableenergy,waste
management,sewagetreatment,andairandwatersurveillancetechnologyandsystems.
Norwayhasundertakenspecificcommitments,withsomeminorexceptions,inthegAts
forallcategoriesofenvironmentalservices,providingmarketaccessfornon-domestic
servicesproviders.
sincetheaccessiontotheWtO,Chinahasopenedallcategoriesofenvironmentalserv-
icesexceptenvironmentalqualitymonitoringandpollutionsourceinspection.foreign
enterprisesmayestablishjointventureswithChineseenterprisesinChina,andthere
isnolimitationonownership.relatedregulationsandmeasuresissuedbythestate
AdministrationofenvironmentalprotectionofChinaincludeMeasures for Operation
Certification for Environment Pollution Treatment Facilities,Measures for Administration
of Qualification for environment Impact Assessment on Construction Project,andMeasures
for Administration of Operation License for Hazardous Wastes.
severalNorwegianbusinessesintheenvironmentalservicessectorarealreadyengaged
intheChinesemarket,providingvariousservicessuchasadvancedsolutionsenabling
recoveryandrecyclingofmaterials,biologicalwastewatertreatmentforboththeindus-
trialandmunicipalsectors.thereis,moreover,reasontobelievethatgivenfavourable
conditions,thetradeofenvironmentalservicesbetweenNorwayandChinahaspoten-
tialtogrowsubstantially.
3.4 Overall impact of liberalizing trade in services
servicesareessentialinputsintheproductionofgoodsandotherservices.theyencom-
passavastanddisparaterangeofeconomicactivitiesanddominatetheeconomiesof
developedandmanydevelopingcountries.Openservicesmarketsbringdirectecono-
my-widebenefitsthroughthefacilitationandencouragementofinnovation,efficiency,
andqualityimprovement,whentheyareregulatedinaccordancewithsound,efficiency-
enhancingprinciples.
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s64 I m pA C t O f t r A d e l I b e r A l I s At I O N O N s e r V I C e s64
thesurveysofselectedservicesectorshavedemonstratedthatservicesarenotonly
importantintheeconomiesofNorwayandChina,butalsoanimportantcomponent
oftotalbilateraltrade.servicesarethemaindriversofeconomicgrowthindeveloped
economiesandareplayinganincreasinglyimportantroleineconomicdevelopment
ofemergingeconomies.
Whilesino-Norwegiantradeinservicesisincreasing,furtherliberalisationoftrade
inserviceswouldbebeneficialtotheeconomiesofbothcountriesandaswellasto
economiccooperationandthefacilitationofincreasedinvestmentsbetweenChina
andNorway.
ChinaandNorwayrecognisetheimportancetoseekmutualbeneficialandtailormade
solutionsforliberalisationofbilateraltradeinservicesinfutureftAnegotiations.While
thetwocountrieshavemadecommitmentsintheWtO,therearestillsomerestric-
tionsintheservicessectorsonbothsides.Itisrecommendedthatthattheseissuesare
addressedinfutureftAnegotiations.Allpotentialimpactsonbothcountriesservices
sectorsshouldbetakenintoaccountinanyftAnegotiations.
theoverallimpactsoffurtherliberalisationinservicestradeareexpectedtodeliver
positiveresultsforboththeChineseandNorwegianeconomies.Accesstonewtech-
nologiesandexpertisecanbeasignificantpositivefactorforeconomicdevelopment
andconsumerwelfare,byloweringcostsforconsumersandproducersandshiftfactors
ofproductiontomoreeffectiveuse.servicestradeliberalisationshouldseektoreduce
barrierstotradewhiletakingintoaccountlegitimatenationalpolicyobjectivesinareas
suchasprotectingtheenvironment,ensuringhumanhealthandpromotingcultural
diversity.
65
Chapter four: Investment
foreigninvestmentisrecognizedbybothChinaandNorwayasakeytoeconomic
growthandanimportantbasisfordeepeningandbroadeningthebilateraleconomic
relationship.thischapterprovidesanoverviewofpoliciesandbarriersthataffectthe
investmentflowbetweenChinaandNorway,andexploresopportunitiestopromote
bilateralinvestment.
4.1 An overview of Chinese investment policy and measures
foreigninvestmenthasbeenanimportantpartofChina’sopen-doorpolicywhichis
thebasicstatepolicy.foreigninvestmenthasplayedapivotalroleinChina’ssustainable
economicdevelopmentsinceitadoptedreformsandtheopen-doorpolicybeginning
in1978.foreigninvestmenthascontributedtotheChina’seconomicdevelopmentby
providingcapital,technology,managerialexpertise,andincreasingemployment,exports,
andgovernmentrevenue.
for14yearsuntil2006,Chinahasremainedthelargestrecipientofforeigndirectinvest-
ment(fdI)amongdevelopingcountries.Oftheworld’slargest500firms,over480have
investedinChina.
therehavebeensignificantchangesinChina’sfdIpolicyregimesinceitsaccession
toWtO,whichincludeeffortssuchasdecentralisation,liberalisation,enhancementof
transparencyandlegislativestrengthening.ChinahasimproveditsoverallfdIpolicy
regimebyenhancingtransparencyandabolishingmanyWtO-inconsistentinvestment
measures.substantialprogresshasbeenmadetowardstheobjectiveoffurtheropening
uptheservicesectors,andChinahasstrictlyhonoureditsWtOcommitmentsinceacces-
sion.substantiveprogresshasbeenmade.forexamplemeasuressuchas,relaxationof
geographicalandownershiprestrictions,andremovalofrestrictionsonscopeofbusi-
ness,amongothers,havebeenapplied.
Chinaisstrugglingtoshiftitseconomicgrowthpatternandtransformitselfintoa
resource-conserving,environmentallyfriendly,andinnovation-drivencountry.priori-
tiesonattractingforeigninvestmentwillbeconsistentwithitsmacroeconomicgoals.
Chinahasintroducedanindustrialpolicywhichservesasguidanceforforeigninvest-
ment.thelatesteditionoftheIndustrialCatalogueonguidingforeignInvestment
hasbeenpromulgatedrecentlywithaviewtoreshapingthefdIstructureinlinewith
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s66 I N V e s t m e N t66
China’snationaleconomicdevelopmentstrategy.thenewCataloguecameintoeffect
on1december2007.foreigninvestorsarewelcometoengageintheareasofhigh-
tech,energy-savingandenvironmentalprotectionsectors,modernagriculture,modern
serviceandservice-outsourcingsectors.
theChinesegovernmentisalsomakingeffortstocoordinateandharmonizeregional
economicdevelopmentbycarryingoutstrategiessuchas“thegoingweststrategy”,“the
riseofthecentralregionofChina”,andupgradingoftheoldindustrialfoundationsinthe
northeastofChina.fdIpolicyisalsointendedtoassistsuchstrategies.
Inrecentyears,ChinahasalsostartedtoencourageoutwardfdI,largelytoupgrade
technicalskillsandtosecuresuppliesofkeyrawmaterials,suchaspetroleumandiron
ore.theCentralgovernmentandsomeprovincialgovernmentshavebeenencouraging
firmstoinvestabroadbyrelaxingapprovalproceduresandprovidingfinancialsupport.
forexample,theNationaldevelopmentandreformCommission(NdrC)andtheexport-
ImportbankofChinaissueda"NoticeonloansupportpolicyforKeystate-encouraged
OverseasInvestmentprojects"on27October2004,whichspecifiesthatpreferential
interestratesmaybeappliedtooverseasinvestmentloans.
AdescriptionofChina’sfdIpolicies,legislationandproceduresfollowsbelow:
Foreign Investment Forms
fdIinChinafallsintothreemajorcategories,whicharerespectivelyChinese-foreign
equityjointventures,Chinese-foreigncontractualjointventuresandwhollyforeign-
ownedenterprises.
Chinese-foreignequityjointventuresarejointlyestablishedwithinChinabyforeign
individuals,enterprisesorothereconomicorganizationsononesideandenterprisesor
othereconomicorganizationsinChinaontheother.thiskindofjointventuresshalltake
theformofalimitedliabilitycompany.
Chinese-foreigncontractualjointventuresmeanthatpartiestosuchaventureshall
agree,priortothecooperativeestablishmentoftheventure,ontheconditionsfor
investment,theratioofthedistribution,thesharingofrisks,theformofoperationsand
managementandtheownershipoftheassetsatthetimeofterminationoftheventure.
Whollyforeign-ownedenterprisesareestablishedwithintheterritoryofChinaand
involvecapitalinvestmentsolelymadebyforeigninvestors.theterm“whollyforeign-
ownedenterprise”doesnotcoverbranchesofforeignenterprisesestablishedwithin
theterritoryofChina.
Legal Framework
thebasiclawsandregulationsofChinaconcerningforeigninvestmentareLaw on
Chinese-Foreign Equity Joint Ventures, Law on Chinese-Foreign Contractual Joint Ventures,
Law on Wholly Foreign-owned Enterprises andtheirimplementingregulations.theselaws
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havebeenreviewedandrevisedperiodicallytoreflectdevelopmentsintheWtOand
China’sowncommitments.Quiteafewrestrictions,suchasrequirementonthebalance
offoreignexchange,exportperformance,localizationofsuppliesandnotificationof
productionplans,havebeenremovedinrecentyears.
OtherrelevantlawsandregulationsimportantforforeigninvestorsincludeCorporate
Income Tax Law (whichisaunifiedincometax,andwillbeimplementedon1January,
2008), Company Law andContract Law.
Industry Policy
theRegulation on Guiding Foreign InvestmentandtheIndustrial Catalogue on Guiding
Foreign Investmentareformulatedtoguidetheorientationofforeigninvestmentinline
withthenationaleconomicandsocialdevelopmentstrategyofChina,andtofurther
protectthelawfulrightsandinterestsofinvestors.Accordingtotheaboveregulations,
allforeigninvestedprojectsfallintofourcategories,namelyencouraged,permitted,
restrictedandprohibited.formoredetails,pleaserefertowww.fdi.gov.cn.
Establishment Approval
China’sprimaryregulationsonapprovaloffdIprojectsincludethelawonChinese-
foreignequityJointVentures,lawonChinese-foreignContractualJointVentures,law
onWhollyforeign-ownedenterprisesandtheirimplementingregulations,theAdminis-
trativelicensinglaw,theCatalogueonguidingforeignInvestment,andothersectoral
policiesorguidelines.
Asadecentralizationeffort,competenceforscreeningandverificationhasbeendele-
gatedtotheprovincialgovernmentauthorities.theseauthoritiescanscreen,verifyand
approveforeigninvestmentsnothigherthanus$100millionin“permitted”and“encour-
aged”industries.for“restricted”industriesthelimitisus$50million.Incasesofsome
newlyopenedservicesectors,regulationsorguidelinesonverificationproceduresapply.
projectsvaluedatmorethanus$100millionfor“permitted”and“encouraged”industries
(us$50millionforrestrictedindustries)whichalsofallsintothe“permitted”and“encour-
aged”categoryintheCatalogueonguidingforeignInvestmentmustbeverifiedbythe
NationaldevelopmentandreformCommission(NdrC)andtheministryofCommerce
atthenationallevel.
moredetailsareavailableon www.fdi.gov.cn.
Regional Policy on Foreign Investment
toattractfdItosupportthebalancingandcoordinationofregionaleconomicdevel-
opmentisapriority.theCentralgovernmenthasinitiatedstrategiesofpromotingthe
developmentofthewesternregion(“goweststrategy”);centralregion(“theriseofthe
centralregionofChina”);andthenorth-easternregion(byfurtheropeningoldindustrial
foundations).theChinesegovernmentencouragesforeigninvestorstoparticipatein
therenovationandrestructuringofstate-ownedenterprisesandinvestmentsinsome
I m pA C t O f t r A d e l I b e r A l I s At I O N I N g O O d s68 I N V e s t m e N t68
keyindustrieswhicharelocallyadvantageousandcrucialtotheregionaldevelopment.
thegovernmentalsowelcomesinvestmentmadebyforeigncorporationsinthecentral
regionthroughthetransferofthehighvalue-addedpartofmanufacturingandservice
outsourcing.
The New “Corporate Income Tax Law”
thenew“CorporateIncometax(CIt)law”waspassedatthe5thsessionofthe10th
Nationalpeople’sCongresson16march2007.thenewlawwillapplytobothdomestic
andforeigninvestmententerprises(fIes).
thenewtaxlawwasimplementedon1January2008.productivefIeswhichenjoy15%
and24%favourableincometaxratesbasedonthepresentincometaxlaw,willpaya
singleuniformcorporateincometaxof25%.theyareeligiblefora5-yeartransition
periodwithagradualincreaseuptothe25%taxrate,althoughthe“Newlaw”doesnot
providethedetailsforthistransition.
Withtheenforcementofthe“Newlaw”,somepreferentialCItpoliciescurrentlyavailable
exclusivelytofIeswillberevoked.forexample,theincometaxincentivesof“2years
exemptionand3yearsdeduction”willbeabolished.buttheproductivefIeswhichhave
notfullyutilisedthe5-yeartaxholidaybeforetheeffectivedateofthenewtaxlawwill
continuetoenjoytheremainingtaxholiday.
Accordingtothe“Newlaw”,theincometaxrateforcompaniesengagedinservicetrade
willgodownfrom33%to25%,indicatingagreatlyreducedtax.small-sizedandtiny-
profitcompanieswillenjoya20%preferentialtaxrate.
thenewincometaxlawwilladoptanewmechanismwithincentiveorientations
“focusingonpriorityindustriesandsupplementedbypriorityregions.”foreigninvest-
mententerprisesengagedindevelopmentofhigh-tech\new-tech,infrastructure,agri-
culture,forestry,animalhusbandry,andenvironmentprotectionsectorswillbegranted
newtaxincentives.thenewincometaxlawwillprovideincentivestothewesternregion
andspecialeconomicareas.
4.2 An overview of Norwegian investment policy and measures
Norwayhasalongtraditioninwelcomingforeigninvestments.severalofNorway’skey
industrialsectorsweredevelopedwithforeigncapitalandcompetence.thehydro-
electricpowerplants,whichwerethebasisofthefertilizerindustryandthealuminium
industry,areexamplesofsuchsectors.today,Norwayisamongtheworld’slargest
producersinboththesesectors.
furthermore,Norwayisanopeneconomythatwelcomesforeigninvestmentsasa
matterofpolicy.Norwayprovidesastableandpredictableenvironmentforforeign
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investors.theWorldbankrankedNorwayin2007asthe10theasiestcountryintheworld
todobusinessinandasthe8thbestcountrywhenitcomestoenforcingcontracts.
Norwaygenerallygrantsnationaltreatmenttoforeigninvestorsandspecificexceptions
fromtheseprinciplesaremadeonlyinalimitednumbersofsectors.thegovernment
portalwww.bedin.nocontainsinformationonrulesandregulationspertainingtoestab-
lishingandrunningabusinessinNorway.foreigncompaniesmayalsogetassistance
fromInnovationNorwayinbusinessdevelopmentthroughoutNorway.Innovation
Norway’sChinaofficesarelocatedattheroyalNorwegianembassyinbeijingandat
theroyalNorwegianConsulateinshanghai.
Attheendof2005thestockofforeigndirectinvestmentsinNorwayamountedtous$
80.3billion.europeaninvestorsownedmorethan70%ofthiscapital.31%weredirected
towardsoilproductionand28%towardsmanufacturing.Approximately40%wentto
theservicesector,wherefinancialservices,insuranceandbusinessservicesaccounted
foralmosthalfofthis.
Norwayisamongthebestcountriesineuropewhenitcomestoentrepreneurshipand
innovationaccordingtogem(globalentrepreneurshipmonitor),andthereisasteadily
increasinginterestinstartingupnewbusinessinNorway.
therearetwotypesoflimitedliabilityCompaniesinNorway:
•privatelimitedliabilitycompany(As)–sharecapital:NOK100.000(us$16000),
whichisthemostcommon
•publiclimitedliabilitycompany(AsA)–sharecapital:NOK1.000.000(us$160000),
mostlylistedontheOslostockexchange)
ItisveryeasytostartanewcompanyinNorway.AccordingtotheWorldbankittakes
just10daystostartupanewbusinessinNorway,comparedtoanaverageof15daysin
theOeCdcountries.thenewcompanywillhavetoregisterintheregisterofbusiness
enterprisesandtheCentralCo-ordinatingregisterforlegalentities.
theadvantagesofinvestinginNorwayarei.a.asfollow:
•Open,strongandstableeconomy;
•fullbusinessaccesstotheeu-marketthroughtheeeAagreement;
•highlycompetentandmotivatedworkforceatcompetitivewages;
•stablepoliticalclimateandefficientbureaucracy;
•lowcorporatetaxrateat28%andthelowestincometaxamongtheNordicstates;
•goodproficiencyofforeignlanguagesandenglishisspokeneverywhere;
•Advancedr&denvironment–largeforeignr&dinvestmentinNorway,inpartic-
ularinselectedbrancheslikeIt(googleandyahoointrondheimandallmajor
internationalenergycompaniesinstavanger);
•taxdeductionforr&dexpenses–(skattefunn);
•satisfiedforeigninvestorsasforeignownedcompaniesarequiteprofitable(2004,
10%grossprofitonaverage);
•excellentairandrailconnectiontomajormarketsandlogistics;and
•highqualityoflife
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Attheendof2005,Norwegianforeigndirectinvestmentabroadamountedtous$102.6
billion.Norwayhasarelativelylargeshareofitsdirectforeigninvestmentsinmanufac-
turingandminingindustries(35%)andarelativelyminorshareofinvestmentsinserv-
ices(25%),comparedtothestructureofNorwegianeconomy.Norway’sforeigndirect
investmentswereconcentratedineurope(56%).20%wenttoNorthAmericaand11%
toAsia.
4.2.1 Norwegian foreign portfolio investments through the Government Pension Fund – Global
thepetroleumfundwasestablishedin1990asafiscalpolicytooltosupportalong-
termmanagementofthepetroleumrevenues.renamingthefundthepensionfund
-globalin2006waspartofabroaderpensionreform,highlightingalsothefund’srole
infacilitatinggovernmentsavingsnecessarytomeettherapidriseinpublicpension
expendituresinthecomingyears.
duetolargeannualcashflowsfromthepetroleumactivities,causingconsiderable
surplusesongovernmentfinances,thefundhasgrownrapidlysincethefirstcapital
allocationin1996.Currentsizeofthefundisus$301billionasof30september2007.
theministryoffinanceisresponsibleforthemanagementofthefund.theoperational
managementiscarriedoutbyNorgesbank(theCentralbank)whichinveststhefundin
accordancewithguidelinesissuedbytheministry.theinvestmentstrategyforthefund
istoachievehighfinancialreturnssubjecttomoderaterisk.theguidelinesstatesthat
thefundisonlytobeinvestedabroadinfinancialinstruments,andactsasafinancial
investorwithasmallownershipshareinindividualcompanies.equitieshaveaccounted
for40pct.ofthefundsstrategicbenchmark,andbonds60pct.InJune2007,theministry
offinancechangedthebenchmarkforthefund,andthenewstrategicbenchmark
consistsof60%equitiesand40%bonds.theguidelinesalsostatesanoveralllimit
ondeviationsbetweenthebenchmarkportfolioandactualportfolio,expressedasa
trackingerrorof1,5percentagepoints.
therisksfacingthefundarewelldiversified.thebenchmarkportfoliocomprisesindices
for27stockmarkets,including5markets21classifiedasemergingmarketsbythebench-
markindexprovider,ftse.thelistofemergingmarketsincludedinthebenchmark
hasbeendeliberatedatregularintervalsintheNationalbudgetdocuments,andwas
lastchangedin2003fortheNationalbudgetfor2004.themarketanalysisisbasedon
asobjectivecriteriaaspossible,measuringwhethermarketsareopentoforeigners,
whetherthelegislationineachmarketprotectsinvestorrightsandwhethereachmarket
satisfiesminimumrequirementsregardingsettlementsystems,size,liquidityandpolit-
icalandmacroeconomicstability.thesizeofthemarketsisalsoimportantwhenmeas-
21 brazil,mexico,southKorea,ChinesetaipeiandsouthAfrica.
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uringhowtheinclusionofnewmarketsinthebenchmarkwillchangetheportfolios
expectedriskandreturn.
Inadditiontothemarketsincludedinthebenchmark,Norgesbankisallowedtoinvest
inothermarketsbasedontheirownassessmentofissuesrelatingtovaluation,return
measurement,aswellasthemanagementandcontrolofrisksassociatedwithinvest-
mentsineachindividualmarketandcurrency.
The Government Pension Fund – Global’s investments in China
Norgesbankpublishesthefundsholdingsasofeachyear-end.Whileinvestmentsin
fixedincomeinstrumentshavebeenverylimited,investmentsinChineseequitieshave
beensignificant.Intable4-1,companiesareclassifiedaccordingtothelocationoftheir
headquarters.sincecompanieslocatedinhongKongoftengiveexposuretowardthe
Chineseeconomy,holdingsofhongKongcompaniesarealsoreported.thestatements
fortheyears2005and2006showsthattheholdingsofChinese/hongKongequities
havemorethandoubledfrom2005to2006.eventhoughthefundhasgrownrapidly
duringthisperiod,theshareofChineseandhongKongequitiesintheequityportfolio
hasincreased.thesharesofChineseandhongKongequitiesasapercentageofthe
overallequityportfolio,bytheendof2006,were0,7pct.and1,2pct.respectively.
the1,2pct.shareinhongKongequitiescorrespondedwiththeshareofhongKong
equitiesinthefundsbenchmark.
Table 4-1 Investments in China/Hong Kong companies 2005–2006.
2005 2006
China Hong Kong China Hong Kong
marketvalue(us$million) 327,2 726 752 1048
Numberofcompanies 45 119 89 133
shareofoverallequityportfolio 0,4% 0,8% 0,7% 1,2%
source:Annualreports,Norgesbank.Companiesareclassifiedaccordingtothelocationoftheirheadquarters.
bymarch2007,NorgesbankInvestmentmanagement,whichisresponsibleforasset
managementwithinNorgesbank,had135permanentemployees.NbImcurrentlyhas
officesinNewyorkandlondoninadditiontoOslo.thebankopenedanewofficein
shanghaiinthefallof2007.Withtheopeningoftheofficeinshanghaithebankwillgain
localpresenceintheAsianmarkets,whichconstitutes15%ofthefundsbenchmarkfor
equitiesand5%forbonds.
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4.3 Bilateral direct investment between China and Norway
AnincreasingnumberofNorwegiancompaniesinvestinChina.themostrecentbig
investmentsincludeNorskeskog,Norskhydro,Jotun,andttsmarinesAsA.In2005the
governmentpensionfund-globalinvestedmorethanatotalofus$752millionin89
ChinesecompanieslistedinChina.AccordingtoNorwegianinformation,closeto200
NorwegiancompaniesareestablishedinChina.35to40oftheseareproductioncom-
panies.theotherestablishmentsaresalesofficesandrepresentativeoffices.
AccordingtoNorwegianstatistics,NorwegiandirectinvestmentsinChinain2004
amountedtoalmostus$25,3million.however,sinceNorskeskogsinvestmentsinChina
alonehaveamountedtoalmostus$296million,thesenumbersapparentlydonotgive
thefullpictureofNorwegianinvestmentsinChina.
AccordingtoofficialChinesefigures,Norwayhadmade258separateinvestmentsin
China.furthermoreNorwayhadinvestedus$268millionbytheendof2006,andmade
commitmentstoinvestafurtherus$533million.
themainsectorsforNorwegianinvestmentsinChinaarethemaritimesector,theenergy
andenvironmentsector,oilandgas,aquaculture,andtheprocessingindustry.
ChinesecompaniesarealsoinvestinginNorway.tothisdate(december2007)three
ChinesecompaniesareestablishedinNorway;Zte,COsCOandAirChina.
AsaresultofincreasedinvestmentsbetweenChinaandNorwayasub-committeeon
investmentswasestablishedinseptember2006,undertheJointeconomicCommission.
theobjectiveofthesub-committeeistofacilitatebilateralinvestmentsbyexchanging
informationonlaws,regulations,policiesandotherrelatedinformationonoverseas
investments.thecommitteealsoenablesChineseandNorwegianinvestorstoraise
issuesofconcern.
Abilateralinvestmenttreaty(bIt)isinforcebetweenNorwayandChina.thetreaty
wassigned21November1984andenteredintoforce10July1985.thetreatyincludes,
i.a.provisionsonmostfavourednationtreatmentandexpropriation,givinginvestors
predictabilityintheareascovered.
4.4 Overall impact of liberalizing investment
thestudyshowsthattheinvestmentflowsbetweenChinaandNorway,although
increasingrapidlyinrecentyears,arestillmodestrelativetobilateraltrade.thisreflects
bothregulatoryandotherimpedimentstoinvestmentand,tosomedegree,lackof
awarenessofbusinessopportunitiesintheothercountry.
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Asaninternationaltreaty,thefutureftAbetweenChinaandNorwaywouldresultin:
•greatertransparencyofregulationsandlawsthataffectbothdirectandportfolio
foreigninvestments;
•moreliberalisedregimeswhichwillfacilitateforeigninvestmentineachcountry;
•morestablepolicyframeworksforinvestors,whichcouldfacilitatethetwocoun-
triesdevelopingbilateraltradeandeconomicrelationsmoreactively;and
•opendomesticmarketstoeachothermorequickly.
thefutureftAbetweenChinaandNorwaywouldprovideanimprovedinvestment
environmentforbilateralbusinesses.bothcountriescouldbenefitfromanincreasein
bilateralinvestment,andtheexchangeandtransferofknowledge,technology,ideas
andexportopportunitiesthatwouldflowfromincreasedinvestments.furthermore,the
futureftAwouldbeexpectedtopromotebilateralinvestmentnotonlybystrength-
eninginvestorconfidence,butalsobypositivelyaffectingmarketperceptionsandlead
toincreasedinvestorinterestsinnewbusinessopportunitiesintheothercountry.In
thelongrun,moreintegratedmarketsforgedbytheftAcouldimprovethecompeti-
tivecapacityofenterprises,theefficientdistributionofresources,andfurtherpromote
two-wayinvestment.
ChinaandNorwayshouldreaffirmtheirdesiretoconsiderthepotentialforfurthercoop-
erationopportunitiesintheftAandtoincreasethemutualbenefitsthroughthefurther
facilitationofbilateralinvestment.
74
Chapter five: Strengthening bilateral economic cooperation
AnftAwouldbeexpectedtofurtherenhancebilateraltradeandeconomiccoopera-
tionbetweenChinaandNorway.therefore,itisagreedthatthejointftAfeasibilitystudy
shouldaddressothersector-specificissuesandbroaderhorizontaltopicsofimportance
tothecommercialrelationship,andhighlightpossibleareasforcooperationandfacili-
tationtofurtherpromotebilateraltradeandinvestmentthroughanftA.thischapter
exploreseachoftheseissuesinturn,includingtradefacilitation,e-commerce,sanitary
andphytosanitarymeasures,technicalregulationsandstandards,intellectualproperty
rights,sme’scooperation,temporarymovementofnaturalpersons,tradeandinvestment
promotion,environmentandtechnologycooperation,anddevelopmentcooperation.
5.1 Trade facilitation
Itiswellrecognizedthattradefacilitationcontributesgreatlytotheliberalisationof
internationaltrade,whichnowadayskeepsexpandingmuchmorerapidlythanever
before.Inpromotingthetraderelationsbetweennations,tradefacilitationalsoplays
adistinctrole.Asakeylinkintheinternationalcirculationofcommodities,customs
proceduresplayanimportantroleinpromotingthedevelopmentoftradefacilitation.
China
Atpresent,themodernizationofthecustomsregimeisunderwayinChina.tradefacilita-
tionisoneofthegoalsthatChinaCustomsendeavourstoreachbyitsongoingmoderni-
sationdrive.theapproachesoftradefacilitationtakevariousformssuchasestablishing
infrastructureandfacilitiesfortrade,enhancingtransparencyintrade-relatedregula-
tions,simplifyingtheproceduresfortrade,andapplyingbestpracticeandtechniques
developedbyrelevantinternationalorganizations.Inaword,tradefacilitationcouldbe
regardedasaprocessofreforminthecustomsregimewhichaimstofacilitatethemove-
ment,releaseandclearanceofgoods.
Chinaactivelytakespartinvariousinternationalforaengagedintradefacilitationunder
differentframeworks,whichincludeApeC,theWorldCustomsOrganisation(WCO),and
theWtO.Chinaisalsoinvolvedinsomeregionaltradearrangements,e.g.thegreat
mekongsubregion(gms).
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undertheWtOdoharoundNegotiations,Chinaisanactiveparticipantinthenegotia-
tionsontradefacilitation.sofar,Chinahassubmitted7proposalsfocusingontranspar-
ency,riskmanagement,post-clearanceauditingandidentifyingneedsandpriority.most
oftheproposalsareco-sponsoredbyothermembers.throughclarifyingandimproving
gAttarticleV,VIIIandX,andprovidingtechnicalAssistanceandCapacitybuilding
(tACb)andspecialanddifferentialtreatment(s&dt)todevelopingcountrymembers,
Chinabelieves,tradefacilitationwillbenefitallthemembersunderthemultilateral
tradesystem.
In2006,theNationalOfficeofportmanagementwasformallysetup,whichhasenabled
portmanagementtotakeonanewlook.ChinaCustomshasmadeeveryeffortto
promotetheIntegratedClearanceproject,whichfullycapitalisesfromanestablished
liaisonandcoordinationmechanismbetweenthedifferentportmanagementsand
authorities.Asaresult,mostoftheportshavewitnessedconstantlyincreasedcustoms
clearanceefficiency,especiallyintheportsconsideredimportant.
ChinaCustomshasengrainedthestrategyof“buildingasmartCustomswithscience
&technology”initsday-to-daywork,underwhichtheCustomspaysgreatattentionto
raisingthemanagementlevelbyusingscience&technologyandtheeffectivenessof
science&technologyapplications,andhasprincipallyestablishede-Customs,e-port
ande-generalAdministrationapplicationsystems.thesesystemsareprovidingstrong
technicalsupportfornetworkedCustomsclearanceoperations,smartcontrol,digitised
managementandsoundadministrativedecisions.
Currently,e-Customssystemhasbeenupgraded,switchingfromh883toh2000.for
e-general-Administrationsystem,ChinaCustomshasdevelopedandappliedthesub-
systemsforimportandexportstatisticscompilation,riskmanagement,enforcement
evaluation,revenueanalysisandmonitoring,priorwarningmonitoring,officeautoma-
tion,anti-smugglinginvestigation.e-portsystemhasdevelopedintoaunifiedcross-
department,cross-regionandcross-sectorinformationplatformforbothportclearance
enforcementandmanagementandrelevantlogisticalservices.
Norway
tradefacilitationisanareawhichtheNorwegianAdministrationregardstobevery
important.theNorwegianCustomsAdministrationiswithinitscompetencecontinu-
ouslytryingtosimplifyimportandexportproceduresaswellasothercustomsrelated
procedures.
theNorwegianCustomsparticipatesactivelyinvariousinternationalforaengagedin
activitiessuchassimplificationofcustomsproceduresandtradefacilitation.thesefora
includetheuN,WCO,variouseuandeftAcommitteesandotherorganisationslikethe
Internationalroadtransportunion(Iru).
Onepriorityduringthelastfewyearshasbeenthedevelopmentofthe”NewCompu-
terisedtransitsystem(NCts)”togetherwiththeeuandtheothereftAcountries.the
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euandtheeftAcountriesarecontractingpartiestothetransitConvention.Whenthe
NCtsbecameoperative,transitofgoodswithineuropebecame”paperless”,andall
communicationconcerningtransitconsignmentsbetweenCustomsauthoritiesare
conductedbyelectronicmessages.
since1988theNorwegianCustoms’electronicclearancesystemtVINNhasbeen
appliedforimportdeclarationsandsince1992forexportdeclarations.today99%ofall
importandexportdeclarationsaresubmittedandclearedthroughthetVINNsystem.
theaverageclearancetime(exceptfordocumentsandconsignmentsstoppedfor
control)islessthan10minutesfromthetimewhenthedeclarationissubmittedtothe
Customsandthegoodsarereleased.Claimsforcustomsdutiesandothertaxes
areautomaticallyissued.
thetVINNsystemisopen24hoursadayanddeclarationsmaybesubmittedatalltime.
Ifthesystemfindsnoerrorsinthedeclaration,oritisnotstoppedbyanycontrolparam-
eterssetinthesystem,theconsignmentisnormallyreleasedforfreeusebytheowner
withoutfurtherinterruption.
theNorwegianCustomshasalsodevelopedelectronicsystemsforassessingand
claimingexcisedutiesandvehicletaxes,accounting,enforcementpurposesandrisk
analysis.theNorwegianCustomshasalsolinkswiththecomputersystemsofother
governmentalauthoritiesonbehalfofwhichtheCustomsperformsvarioustask.such
authoritiesincludeveterinaryandagriculturalauthorities.thecustomsproceduresand
theelectronicsystemsusedbytheNorwegianCustomsareunderconstantscrutiny
aimedatachievingfurthersimplificationandefficiencyforboththeCustomsandthe
traders.
Norwayhasinmostrespectsgonebeyondtherequirementsandrecommendationsset
ininternationalbodies,conventionsandagreementswheresimplificationofCustoms
proceduresisconcerned.however,theNorwegianCustomsgivesprioritytofurther
internationalharmonizationofCustomsprocedures,forexamplethroughtherevised
KyotoConventionandasanintegratedpartofinternationaltradeagreements.Inthe
developmentofsimplifiedproceduresandelectronicsystems,theuseofinternational
standardsandrecommendationsisconsideredveryimportant,andtheseareappliedin
mostcaseswheresuchstandardsexist.
Inafreetradecontext,Norwayaimsatliberalisingtradeproceduresbetweenfreetrade
partnerstotheextentpossible.time-consumingproceduresaremajorobstaclesto
trade.byestablishingcomputerizedclearancesystemsandsophisticatedriskmanage-
mentsystemsandtargetedcontrols,mostofthetradecanbeconductedbetween
exportersandimporterswithoutunnecessarydelays.
WithintheWtO,Norwayisactivelyparticipatinginthenegotiationsontherevision
ofgAttArticlesV,VIIIandX.
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IntheongoingnegotiationsonftAswithintheeftAframework,tradefacilitationisa
subjectofconsiderableimportance.WithintheeftAstatesprovisionsontradefacilita-
tionforfutureftAsisunderconstantdevelopmentdependingontheviewandsituation
ofthepartnercountry.
Opportunities for Future Cooperation
efficientandsimplifiedcustomsproceduresarecrucialincontributingtowardstrade
facilitationbetweenChinaandNorway.Cooperationcanensurethatcustomsrequire-
mentsaremet,whileminimisinganydisruptiontotheflowofgoods,andavoidingany
unnecessarycoststotraders.undertheframeworkofthefutureftA,ChinaandNorway
Customscouldstrengthentheirexistingrelationshiptofurtherfacilitatebilateraltrade.
furthermore,theinclusionofprovisionsoncustomsproceduresandtradefacilitationin
afutureftAwouldbebeneficialtosino-Norwegiangoodstrade.
5.2 E-commerce
theincreasinguseofinformationtechnologyanddigitalcommunicationssystems,
especiallytheInternet,bybusinessinChinaandNorwayhasbeenamajordrivingforce
behindtherapiddevelopmentofe-commerceinrecentyears.e-commercecanbring
marketsclosertogether,thusfacilitatinggoodstradeandintroducingnewservices.the
enterprises,smesinparticular,willprofitfromtheuseofe-commerceasitimproves
efficiencyandreducethecostoftransactions.
China
Althoughstartinglate,e-commerceiswitnessingarapidpopularizationanddevelop-
mentinChina.AccordingtothelateststatisticsfromChinaInternetNetworkInformation
Centre(CNNIC),thenumberofInternetusersinChinareached162millionbyJune2007,
rankingthe2ndintheworld,onlyaftertheunitedstates.Amongthem,about104million
arebroadbandInternetusers.bytheendof2006,thenumberofcomputerslinkedtothe
InternetinChinareached60million.
besidesindividualInternetusers,mostChineseenterpriseshaveestablishedtheir
ownenterpriseresourceplanning(erp)systemsandhavebeencarryingoutnetwork
marketing,supply-chainmanagement(sCm)andcustomsrelationmanagement
(Crm).themodelsforconductinge-commerceamongChineseenterprisesvaryand
includesettingupwebsitesforon-lineexpositions,on-linetrans-nationalprojectfairs,
continuousonlinefairsandinformationportals.Chinesecompanieshavebeenexploring
marketsthroughonlinenegotiations,onlinesalespromotionsandonlinetrading.Online
purchasing,onlineauctionandonlinebiddinginChinahavealsoexperiencedarapid
increase.statisticsfrommOfCOmshowsthatthee-commercetradeofChinareachedto
rmb1700billion(aboutus$212.5billion)in2006,amongwhichthebusiness-to-busi-
ness(b2b)e-Commercevalued1280billionrmb1280billion(aboutus$160billion).
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Withthedevelopmentoftheinfrastructure,humanresourcesandinformationtech-
nologyinthenewcentury,Chinaisinapositiontofurtherexploretheuseofe-com-
merce.InJuly2007,theNationaldevelopmentandreformCommissionandtheInforma-
tionWorkOfficeofthestateCounciljointlyreleasedthefirste-commercedevelopment
planofChina.thenewplanputsforwardthegeneralobjectivesofChina’se-commerce
developmentinthenextfive-yearperiod.specifically,by2010,abasicpatternofe-com-
mercedevelopmentenvironment,supportsystems,technicalservicesandapplications
shallbeformed.e-commerceshouldbythatpointbecomeanimportantindustryand
e-commerceapplicationsshoulddevelopdramaticgrowthinthenationaleconomy
andsocialdevelopment.Inordertomeetthegoal,theplanstatestwoemphasisesof
e-commerce.Oneistopopularizee-commerceapplicationsandtheotheristodevelop
thee-commerceindustryonagrandscale.
Norway
Norway’sInternetcommunicationsystemsareofhighstandards,withtheadoptionrates
bybusinessesandhouseholdsconsistentlyrankingamongtheleadnationsoftheworld.
the2006e-readinessrankingsproducedbytheeconomistIntelligenceunitranked
Norwayhighly(11thoutof68countries)intermsofprovidinganenvironmentconducive
totheemergenceofe-business.Othere-commercestatisticsofNorwayinclude22:
•percentageofhouseholdswithInternetaccess:69%(2006)
•percentageofenterpriseswithInternetaccess:86%(2004)
•percentageofindividualsusingtheInternetatleastonceaweek:77%(2006)
•percentageofhouseholdswithabroadbandconnection:57%(2006)
•percentageofenterpriseswithabroadbandconnection:86%(2006)
•percentageofindividualshavingpurchased/orderedonlineinthelastthree
months:47%(2006)
•percentageofenterpriseshavingreceivedordersonlinewithinthepreviousyear:
28%(2006)
thesuccessesofquiteafewNorwegiane-companies,suchas“Norwegian”(airliner),
“platekompaniet”(music),and“fastsearchandtransfer”(searchengines),canbeattrib-
utedtoNorwegianmarketcharacteristicswhereconsumershaveanunusuallyhighapti-
tudeforItknowledgeandaheartyappetiteforconsumerelectronics.
AsamemberoftheeeA,Norwayhasnotfullyimplementedthebody’se-Commerce
specifications.however,Norwayhasenactedanationale-CommerceActwhichsupports
muchofeeA.
Opportunities for future cooperation
ApossiblebilateralftAwouldprovideanopportunitytoenhancee-commercecoop-
erationbetweenChinaandNorway.undertheframeworkofthefutureftA,Chinaand
Norwayshouldmakejointeffortstoestablishaframeworkthatcouldensurethesound
22 source:eurostat.
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developmentofe-commerceinbothofthetwocountriesandconsistencywithexisting
multilateralandregionaltraderulesandnormswithabearingone-commerce.
AreasforcooperationunderthefutureftAthatcouldbefurtherexploredinclude:
•minimisationoftheregulatoryburdenone-commerce;
•consistencywithexistingmultilateralandregionaltraderulesandnormswith
abearingone-commerce;
•effectivedataandconsumerprotection;
•cooperationinthedevelopmentofpaperlesstrading;and
•implementationofrelatedcapacitybuildingandhumanresourcedevelopment
projectsforawiderapplicationofe-commerce.
5.3 Sanitary and phytosanitary measures (SPS)
theWtOAgreementontheApplicationofsanitaryandphytosanitarymeasures(sps
Agreement)establishestheinternationalrules-basedframeworkfordevelopingand
adoptingspsmeasures.thespsAgreementacknowledgestherightofmembersto
undertakemeasurestoprotecthuman,animalorplantlifeandhealth.Itrequiresthat
suchmeasuresshouldnotbeusedtorestricttradeunnecessarily,arebasedonscien-
tificprinciplesandarenotmaintainedwithoutsufficientscientificevidenceoravailable
pertinentinformation.
China
sinceaccessiontotheWtO,Chinahasestablishedaspsnotificationauthorityanda
spsenquirypoint.ChinahascommittedtocomplywiththespsAgreementandensure
conformitywiththespsAgreementofallitslaws,regulations,decrees,requirementsand
proceduresrelatingtospsmeasures.WiththeboomingofChina’simportsandexports
ofagriculturalproductsandfood,therelevantspsmeasuresaretobestrengthenedto
preventtheoutbreakofexistingoremerginginfectiousdiseasesorpestsandtoprevent
thecontaminatedfoodwithtoxicsubstancestoprotectthehuman,animalandplantlife
orhealth.
thegeneralAdministrationofQualitysupervision,InspectionandQuarantineofthe
people’srepublicofChina(AQsIQ)isalaw-enforcementadministrativeorganofthe
stateCouncilinthefieldofquality,metrology,entry-exitcommoditiesinspection,entry-
exithealthquarantine,entry-exitanimalandplantquarantine,supervisionoffoodsafety,
certificationandaccreditationandstandardization.Itisthekeygovernmentauthority
inchargeofentry-exitanimalandplantquarantineandfoodsafety,whicharethethree
mainissuescoveredbythespsagreementoftheWtO.thenationalspsenquirypointof
ChinaisestablishedinAQsIQ.
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theCertificationandAccreditationAdministrationofthepeople’srepublicofChina
(CNCA)isresponsiblefortheregistrationsystemoffoodmanufacturingandprocessing
establishments.theregistrationrequirementappliestobothimportingandexporting
establishments.Withregardtoimport,CNCA,accordingtotheregulationsfor
AdministrationofregistrationofforeignfoodestablishmentIntendedtobeImported
intoChina,isauthorizedtoregisterforeign-locatedenterprisesthatproduce,processor
storefoodstuffsdestinedforChina.Allforeignestablishmentsexportingfoodlistedon
theImportedfoodCatalogueforestablishmentsregistrationmustapplytoCNCAfor
registration,whichmeansthatfoodlistedonthecataloguewithoutregistrationisnot
allowedtobeexportedtoChina.
thestandardizationAdministrationofthepeople’srepublicofChina(sAC)isauthor-
izedbythestateCounciltoexercisetheunifiedmanagementofstandardisationworkin
China.Itisresponsiblefordraftingthestandardisationlawsandregulations,formulating
thelong-termdevelopmentprogramsandshort-termworkingplans.sACisalsorespon-
siblefortheexamination,approval,numberingandpublicationofnationalstandards,
andfortheregistrationandguidanceofsectorstandards,localstandardsandcompany
standards.ItalsorepresentsChinaintheInternationalOrganizationforstandardization
(IsO),theInternationalelectro-technicalCommission(IeC)andotherinternationaland
regionalstandardisationorganisations.
AQsIQisalsoresponsibleforconductingriskanalysisoftheentry-exitofplantsand
animalsandfoodsafety.Chinesemeasuresarescience-basedandproperriskassess-
mentsarecarriedoutaccordingly.AQsIQwilldeterminewhethertherelatedagricultural
productsandfoodaretobeallowedforimportsandexports.Asaresult,theimportedor
exportedproductsholdhighhygienicandhealthstandards.AQsIQwillestablishinspec-
tionandquarantinerequirementsfortheimportingorexportingproducts,aswellas
negotiatewithrelatedgovernmentauthoritiesofothercountriesongeneralspsissues
ordetailedinspectionandquarantinerequirementsforspecificproducts.tostandardise
theriskanalysisprocedure,AQsIQhasreleaseddetailedadministrativeregulationson
science-basedriskanalysisforanimalandplantquarantine,takingtherelatedstandards
oftheWorldOrganizationforAnimalhealth(OIe)andtheInternationalplantprotection
Convention(IppC)asreference.
Non-discriminationisoneofthecoreprinciplesfollowedbyChineseauthoritiesinthe
implementationoftheWtOsspsAgreement.thelocalspsauthoritiesaredirectlymoni-
toredbytheAQsIQtoensurethatspslawsandregulationsareuniformlyadheredto.
Norway
NorwayhascommitteditselftotherightsandobligationsinthespsAgreementsince
itenteredintoforcein1995.theworkandresultsoftheactivitiesofthestandardbody
settingorganisations,andinparticulartheCodexAlimentarius(COdeX),theWorld
OrganisationforAnimalhealth(OIe)andtheInternationalplantprotectionConvention
(IppC),playacrucialroledrawingupregulationsinthisfield.
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Norwayisfreeofmanypestsanddiseasescommonlyfoundinothercountries,i.e.food-
bornediseasesandzoonoses.thusNorwayappliesahighlevelofprotectioninrelation
toimportsandinternationaltradeinplants,animalsandfoodstuffs.thelevelofprotec-
tionmustbeseeninrelationtofreedomstatusobtainedbyinternationallyrecognised
surveillanceandcontrolprograms.examplesareresidueplan,freedomand/orcontrol
plansfortuberculosis,brucellosis,Newcastledisease,bse/tse,salmonella,campylobacter,
severalfishdiseasesandplantpests(afullydetailedlistcanfoundintheannualreport
fromtheNorwegianfoodsafetyAuthority).Ingeneral,restrictionsmaybeappliedon
importswheresuchsurveillanceandcontrolprogramshavebeenestablished.
Norwegianmeasuresarescience-basedandproperriskassessmentsarecarriedout
accordingly.Asaresult,Norwegianproductsholdahighhygienicandhealthstandard.
riskassessmentsonadailybasisarecarriedoutbytheNorwegianfoodsafetyAuthority,
butparticulardifficultandsensitiveissuesareputforwardtotheNorwegianscientific
Committeeforfoodsafetyforevaluation.thelevelofprotectionisdeterminedatpolit-
icallevelintherelevantministries.
themainpartofNorwegianspsmeasuresareharmonisedwiththeeulegislation
throughtheeeAAgreement.Animportantexceptionistheplanthealthlegislation.even
iftheseregulationsarenationalregulations,themainelementsarebasedonthesame
principlesastheeulegislation.theobjectiveoftheseprinciplesistosecureproduction
andtradeofplantsandpropagationmaterialwiththebestpossiblehealthandsatisfac-
toryquality.thisincludesmeasuresnecessarytopreventtheintroductionandspreading
ofpestswhichhasharmfuleffectontheplants.
Norwegianregulationsinthefoodsafetyareaareharmonisedwiththeeuregula-
tionsthroughtheeeAAgreement.theseregulationsarenotonlyequivalenttotheeu
regulations,butidentical,correspondingtotheobligationsoftheeumemberstates.
eeAregulationscoveralsothirdcountrylegislation,includingsafeguardmeasures.Asa
non-memberoftheeu,Norwaymayincertaincasesadoptnationalsafeguardmeasures
correspondingtoanimmediatethreatwhichdepartfromtheadoptedeumeasures,but
thatisnotcommonlydone.forthetimebeingnosuchnationallegislationisinforce.
theresponsibilityforsps-regulationsatthepoliticallevelisdividedbetweenthree
ministries,dependingontheproductsandstageofprocessing:theministryofhealth
andsocialCare,theministryoffisheriesandCoastalAffairsandtheministryofAgricul-
tureandfood.themanagementandexecutiondutiesarecoveredbyonesinglebody,
theNorwegianfoodsafetyAuthority,whichcoversthewholefoodchainfromfarmto
fork.theministryofAgricultureandfoodisresponsibleforcoordinatingadministra-
tiveandbudgetarymattersforthatbody.regulationofdeliberatereleaseofgenetically
modifiedorganisms(gmO)istheresponsibilityoftheministryoftheenvironment.In
relationtoimportsandexportstheNorwegianfoodsafetyAuthorityistheresponsible
organfortheapplicationofimportcontrolsandissuingofexportcertificates.
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theNorwegianspsnotificationpointistheministryofforeignAffairs,whilethesps
enquirypointistheministryofAgricultureandfood.thelatterministryalsocoordinates
theworkassociatedwiththeWtOssps-committeeaswellasspsmattersinfreetrade
agreementswithothercountries.
Opportunities for future cooperation
relationsbetweenNorwayandChinainthespsareahavedevelopedovertimeon
thebasisoffriendlyandconstructiverelations.Inordertofurtherthiscooperation,a
“memorandumofunderstanding”(mou)hasbeennegotiated,andafulltexthasbeen
developedattheadministrativelevel.thesignatoryceremonyofthememorandum
isexpectedtotakeplaceinthenearfuture.thepartiestothatmouarethegeneral
AdministrationofQualitysupervision,InspectionandQuarantineofthepeople’s
republicofChina(AQsIQ),andontheNorwegianside,theministryoffisheriesand
coastalAffairsandtheministryofAgricultureandfood.thescopeofthemouislimited
tothecompetencyoftherespectivepartiesmentioned.In2004,ChinaandNorway
agreedtocooperateinthefieldofseafoodsafetyandarepresentlyengagedinajoint
studyonlisteria.
thetwopartieshavealsometoccasionallyandinformallywithinthemarginsofthe
meetingsintheWtOsspscommittee.butalsointhisrespect,contactscouldandshould
easilyandconvenientlybedeveloped.
severaldelegationsfromChina,alsofromregionallevels,havevisitedNorway,mainly
forinformationpurposes,butalsofordiscussionsontheabovementionedmou.Norway
hasfoundthesevisitsveryinterestinganduseful.thevisitshavebeencarriedoutinthe
formofmeetingsandin-doorinformationsettings,aswellason-the-spotvisitsatcertain
premisessuchastheborderInspectionpostattheairportofOslo.similarmutualvisits
shouldbeencouragedinthefuture.
InthecontextofapossiblefreetradeagreementChinaandNorwaywouldhavethe
opportunitytostrengthencooperationonspsissuesandestablishcommonunder-
standingtorelatedprinciplesandimplementationmechanisms.
•theopportunitiesforbilateralcooperationmayinclude,butarenotlimitedto:
dealingwithspsissuesinaframeworkofenhancedconsultationandcooperation;
•improvingtheunderstandingofeachother’smeasuresandregulatorysystems;
•worktogethertoimprovespsoperationsandassociatedregulatorypracticesand
toaddressproblemsastheyarise;
•agreeingontheprinciplestobeappliedbybothsideswithrespecttoinspection,
testingandcertificationprocedures;
•workingtogethertoensurethatspsmeasuresorotherstandardsdonotresultin
unjustifiablerestrictionsontrade;and
•withoutprejudicetotheeeAAgreement,agreeingontheprinciplesofharmoni-
zation,equivalence,transparencyandregionalizationtoaddressrelevantspsissues.
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5.4 Technical regulations and standards (TBT)
thedevelopmentofglobalizationhasmadetechnicalregulationsandstandardsan
importantcomponentoftheinternationaltradepolicyframework.Awidelyaccepted
internationalstandardssystemwillplayakeyroleinprotectingfairmarketcompetition,
expeditingtransactionofcommoditiesandthuspromotinginternationaltrade.
AsWtOmembers,bothChinaandNorwayfollowtheWtOAgreementontechnical
barrierstotrade(tbt),whichgovernstheformulationanduseoftechnicalregulations,
standardsandconformityassessmentprocedures.
China
Chinahasestablishedanationaltbtenquirypointinconjunctionwithimplementation
oftheWtOstbtAgreementandattachesemphasisparticularlytotheprincipleof
transparency.Chinahasbeenmakinggreateffortsinrecentyearstoremovetechnical
andregulatorybarrierstotrade,especiallyintheareasofstandardsandconformity
assessment,bytakingmeasuresconsistentwiththeWtOstbtAgreement.theadoption
ofinternationalstandardshasbeengreatlyincreased.
tostrengthenandunifytheadministrationofstandards,aswellascertificationand
accreditationactivities,theChinesegovernmentestablishedtheCertificationand
AccreditationAdministration(CNCA)andthestandardizationAdministration(sAC)
underthegeneralAdministrationofQualitysupervision,InspectionandQuarantineof
thepeople’srepublicofChina(AQsIQ)in2001toundertakethecertification,accredi-
tationandstandardsformulationworkrespectively.Chinahasalsoamendedand
adoptedaseriesofnewlawsandregulationsonstandardsandconformityassessment
proceduresinordertoimprovetheimplementationofitsWtOobligations.technical
regulationsandnationalstandardswillbereviewedandassessedeveryfiveyearsto
ensurethattheycomplywithArticle2.4ofthetbtAgreement.
Chinaimplementsaunitaryregulatorysystemforcertificationandaccreditationactivi-
tiesinaccordancewithRegulations of the People’s Republic of China on Certification
and Accreditation.tohonourthecommitmentsunderChina’saccessiontotheWtO,
AQsIQandCNCAmergedtheformertwocompulsorycertificationsystemsintoChina
CompulsoryCertification(CCC)system,whichequallyappliestoimportedanddomestic
products,andthetwoformerCCIbmarkandgreatWallmarkwerereplacedbythenew
CCCmarkin2002.AccordingtotheRegulations,productslistedintheCCCCatalogue,
whichisformulatedbyAQsIQandCNCA,aresubjecttocompulsorycertificationand
maybereleasedfromthemanufacturer,marketed,importedorusedforanycommercial
purposesonlyaftertheyarecertifiedbytheCertificationbodiesdesignatedbyCNCA
andhaveCCCmarkappliedasrequired.theRegulationsalsoprovidesthatacertification
bodymayengageincertificationactivitiesonlyafteritisapprovedbythestate’scertifi-
cationandaccreditationregulatoryauthority,CNCA.
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Whileencouragingtheadoptionofinternationalstandardsandpracticesinformulating
andamendingnationalstandards,Chinaalsolooksintowaystostrengthenbilateral
ormultilateralcooperationonstandardsandconformityassessment.Chinaisafull
memberoftheInternationalOrganizationforstandardization(IsO),theInternational
electro-technicalCommission(IeC),theInternationaltelecommunicationunion(Itu),
CodexAlimentariusCommission(CAC),theInternationalAccreditationforum(IAf),
theInternationallaboratoryAccreditationCooperation(IlAC),andtheInternational
personnelCertificationAssociation(IpC),andhasbeenactivelyparticipatinginthe
activitiesoftheseorganizations.
Norway
Norwayhasdevelopedanextensiveframeworkforaddressingstandardsandconform-
anceissues.standardsNorway(sN),theNorwegianelectro-technicalCommittee(NeK)
andtheNorwegianpostandtelecommunicationAuthority(pt)arethethreestandards
writingbodiesinNorway.
standardsNorway,responsibleforallstandardisationexceptforthosecoveredbythe
twootherbodies,adoptsandpublishessome1,500newNorwegianstandards(Ns)
annually,basedonnationallymadestandardsandoneuropeanandInternational
standards.standardsNorwayistheNorwegianmemberoftheeuropeanCommittee
ofstandardization(CeN)andIsO.
theNorwegianelectro-technicalCommitteeadoptsandpublishessome300new
standardsannually,andistheNorwegianmemberoftheeuropeanCommitteefor
electro-technicalstandardization(CeNeleC)andIeC.
theNorwegianpostandtelecommunicationAuthority(pt)isresponsibleforpost-and
telecommunicationstandardisationinNorway.Itsmajortasksarethecoordinationof
internationalandeuropeanworkinthisarea.ptistheNorwegiannationalmember
oftheeuropeantelecommunicationsstandardsInstitute(etsI)andtheInternational
telecommunicationunion(Itu).
NorwayhascommitteditselftotheWtOstbtAgreementsincetheentryintoforceof
theagreementin1995.Inadditiontomultilateralobligations,Norway’stbtpolicyis
constantlyformedtomirrordevelopmentsintheeu.
theeeAAgreementisregularlyupdatedinparalleltotheeClegislationwithinthescope
oftheAgreement.AsprescribedbytheAgreement,Norwaytakesappropriatemeasures
tofacilitatethesmoothfunctioningoftheAgreement.hence,restrictionsonimports
andexportsofgoodswithintheArea,isprohibitedcf.Article3,4,8,11–13.specific
provisionsandarrangementsarelaiddownintheAgreementsAnnexIIinrelationto
technicalregulations,standards,testingandcertification.
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toremovebarrierstothefreecirculationofgoods,theeCandtheeeAeftAstatesuse
theNewandglobalApproachasoneofthemostimportantinstruments.23theapproach,
whichimpliesharmonisationofproductrequirementsandcertificationsystems,gives
europeanstandardsavitalroleandleadstoCe-markedproducts,whichmaycirculate
freelywithintheeeAArea.
About22productsectorsareharmonisedinaccordancewiththeNewandglobal
Approach.thegovernanceofthelegislationintheseproductsectorsisinNorwaydealt
withbydifferentministries.theministryoftradeandIndustryhasanoverallresponsi-
bilityforthewell-functioningoftheapproachassuch.
Opportunities for future cooperation
ApossibleftAbetweenChinaandNorwaywoulddevelopbilateralcooperationthrough
identifyingprinciples,disciplinesandproceduresfordealingwithtechnicalrequire-
ments,standardsandconformityassessmentthataffectbilateraltrade.theftAcould
alsopromotetechnicalcooperationandcapacitybuildinginthetbtarea,including
informationsharing,seminarsandexchangevisits.
InthecontextofapossibleftA,ChinaandNorwaywillhavetheopportunity:
•toencouragewiderapplicationofinternationalstandardsthroughbilateral
cooperation;
•toidentifyandeliminateexistingunjustifiedtechnicalbarrierstopromotebilateral
trade;
•toimproveinformation-exchangemechanismsbetweentherelatedgovernment
authoritiesofthetwocountriesandtoenhancetransparencyintheregimeof
technicalregulations,standardsandconformityassessment;
•tostrengthencooperationonmutualrecognitionofconformityassessment;and
•tocarryoutbilateralcooperationinthefieldoftechnicalregulations,standards
andconformityassessment.
5.5 Intellectual property rights (IPR)
Intellectualpropertyrightsprotectionisakeyfactorinfacilitatingeconomicdevelop-
mentandinternationaltrade.theestablishmentandmaintenanceofeffectiveintellec-
tualpropertyrightsregimesprovidesincentivestoinnovateandtodisseminateideas
andinformation.Intellectualpropertyrightsalsohelpcreatinganattractiveenvironment
forinvestmentandtechnologytransfer.hence,intellectualpropertyrightsareofcrucial
importanceinstimulatinginvestmentininnovation.theirimportancewillcontinueto
growastheglobalknowledgeeconomyevolves.
23 Aguidetotheapproachisfoundonthefollowingwebsite:http://europa.eu.int/comm/enterprise/newapproach/legislation/guide/legislation.htm
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China
Chinaregardsprotectionofintellectualpropertyrightsasanimportantcomponentof
itsreformandopeningpoliciesandlegalframework.sincethe1980s,Chinahaspromul-
gateddozensoflawsandregulationsforIprprotectionincluding,i.a.thetrademarklaw,
patentlaw,Copyrightlaw,regulationsforprotectionofComputersoftware,regulations
forpenalizingAnti-IprCrimes,andregulationsforCustomsprotectionofIpr.Acompre-
hensivelegalsystemofIprprotectionhasbeenestablished.
ChinaattachesimportancetoenhancingpublicawarenessofIprprotection.measures
takenincludeholdingseminars,producingtVprograms,publishingbooks,andsoon.
therelevantauthoritiesalsoprovidetrainingonIprprotectionwithrespecttoofficials,
headsofenterprisesandtechnicians.sinceitsaccessiontotheWtOindecember2001,
Chinahasattachedhighpriorityonintellectualpropertyrightsinconformitywithits
obligationsasamemberoftheWtO.morestringentpenaltiesforintellectualproperty
infringementhavebeenimplemented,togetherwithalarge-scalecampaignagainst
piracyandcounterfeiting.
WhilemakinggreateffortstoimprovethedomesticlegalframeworkforIprprotection,
Chinahasalsoengagedactivelyinactivitiesofrelatedinternationalorganizations,and
strengtheneditscooperationandexchangeswithothercountriesinthefieldofIpr
protection.
Norway
Norwegianlegislationcoverspatents,trademarks,designs,geographicalindications
andplantvarietyrights,aswellascopyrightandprotectionofcompilationsofdata.
enforcementprimarilytakesplacethroughcivilactiontakenbyrightholdersthrough
thecourts.AnewprovisionhasrecentlybeenintroducedintotheCustomsActinorder
tofacilitateenforcement.theprovisiongivesCustomsauthoritiesincreasedaccessto
temporarystopconsignmentsofmerchandisesuspectedofcontainingcounterfeitor
piratedgoodsattheborders.thiswillmakeNorwegianbordercontrolmeasuresmore
effective.
NorwaybecameamemberoftheeuropeanpatentOrganisation(epO)on1January
2008,andcontributesactivelytotheactivitiesconductedundertheauspicesoftheepO.
referenceismadetotheepO-sIpOstrategicpartnershipAgreementthatwasconcluded
inJune2007.
theNorwegiangovernmentispreparingaWhitepaperonInnovationtobepresented
fortheparliamentin2008.measuresinthefieldofintellectualpropertyrightsaregoing
tobeoneofthefocusareas.CompetencebuildingandraisingawarenessintheIprfield
amongNorwegianenterprises,especiallysme’s,maybeoneofthefocusareasinthe
Whitepaper.
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furthermore,thegovernmentfocusesincreasinglyonmeasurestofacilitateeffective
enforcementofIprights,bothinNorwayandabroad.Onegoalistomakesurethatsmes,
too,caneffectivelyenforcetheirrights.
Norwayalsoendeavourstoactasabridge-builderbetweenNorthandsouthininter-
nationalforawhereIpr-mattersarediscussed,suchastheWorldIntellectualproperty
Organisation(WIpO),theWtOtrIps-Council,theConventiononbiodiversity(Cbd),the
WorldhealthOrganisation(WhO),thefoodandAgricultureOrganisation(fAO)and
others.
Opportunities for Future Co-operation
ChinaandNorwayarebothmembersoftheWorldIntellectualpropertyOrganisation,
andpartiestotheWtOAgreementontraderelatedAspectsofIntellectualproperty
rights(trIps).Accordingly,bothcountriesmaintaincomprehensivelegalframeworksfor
theprotectionofintellectualpropertyrights.
AnftAcouldhelpstrengtheningcooperationbetweenChinaandNorwayinthefieldof
Iprprotection,i.a.byinformationandknowledgeexchangebetweenthetwocountries
regardingtheirrespectiveandIprlegalframeworksIprpolicyregimes.
ChinaandNorwayagreedintheJointstudygrouptofurtherexplorecooperationunder
anftAinthefollowingareas:
•strengtheningcooperationontheimplementationofintellectualpropertyrights,
includinginrelationtolegal,administrativeandimplementationprocesses;
•exchanginginformationonnationallegislationandaccessiontointernational
treaties;
•establishingcooperativemechanismstosettleproblemsidentifiedintheintel-
lectualpropertyrightsarea,inthefirstinstancethroughregularclearingofIpr-
relatedmattersintheChinese-NorwegianJointeconomicCommission;and
•cooperativeactivitiesundertheepO-sIpOstrategicpartnershipAgreement
concludedinJune2007.24
5.6 SME Cooperation
smallandmediumsizedenterprises(smes)areanimportantcomponentofboththe
ChineseandNorwegianeconomies,bothintermsoftheirnumberandtheproportion
ofthelabourforceemployedbythem.Inrecentyears,smesinChinaandNorwayare
becomingmoreactivelyinvolvedininternationalbusinessactivities,andaccordingly
couldbeexpectedtotakeadvantageoftheopportunitiescreatedbythefutureftA.
24 AwholerangeofcollaborativeactivitiesisdrawnupintheAgreement,tobeagreedmorespecificallyinthemonthstocome.Norwaypointedi.a.toArticle32oftheAgreementthatstates,“thetwoOffices(epOandsIpO)willjointlydrawupannualworkprogrammesthatwillsetoutthespecificaspectsoftheircollaboration.”
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ItisimportanttonotethattherearedifferencesinthedefinitionsofsmesinChinaand
Norway.
AccordingtotheChinesegovernment,smesareroughlycharacterizedashaving
lessthan200employees(withtheexceptionof3000employeefortheconstruction
industry),withsalesvaluelowerthanrmb300million(us$40million)orcapitalvalue
lowerthanrmb400million(us$53.3million).
smeshavegrownrapidlyduringthepasttwodecadesinChinaandhavemadesignifi-
cantcontributiontothenationaleconomy.byOctober2006,thenumberofsmes
reachedto42million,accountingfor99.8%ofthetotalnumberofChina’senterprises.
thevalueoffinalproductsandservicescreatedbysmesaccountsfor58%ofChina’s
gdpandabout70%ofChina’stotalvalueofexports.25smesalsoplayaveryimportant
roleinexpandingemployment.theyprovideabout80%ofthetotalurbanemployment
inChina.
topromotesino-foreignsmescooperation,ChinaestablishedtheInternationalCoordi-
nationCentreforsmesin1985andtheInternationalCooperationAssociationofsmesin
1990.besidesinstitutionalconstruction,theChinesegovernmenthasalsoenhancedsme
developmentthroughlegislation.thepromotionlawofsmallandmediumenterprises
waspromulgatedinJune2002andcameintoforceon1January2003.thislawaimsto
promotethehealthydevelopmentofsmesbyestablishingmechanismstopromotefair
marketcompetitionandencouragingsmestoactivelyparticipateininternational
cooperation.
Asanimportanteventaimingtopromotesino-foreignsmescooperation,ChinaInter-
nationalsmall&medium-sizedenterprisesfairisheldtwiceayearinspringandautumn
sinceitwassuccessfullyheldintheautumnof2006.Itisthelargestsmestradefairofthe
highestlevel,ofthemostcompletevarietiesandofthelargestattendanceandbusiness
turnoverinChina.
Norwayuseseu’sdefinitionthatdefinesasmeasacompanywithlessthan250
employees,annualturnoverlessthanus$70millionandwithabalancesheetofless
thanus$60million.smesaccountforthevastmajorityofNorwegianenterprisesand
makeanimportantcontributiontoemploymentandeconomicgrowthofNorway.the
significanceofsmestoNorway’seconomyhasbeenincreasing,withfurtheropportuni-
tiespresentedbyglobalisationandtechnologicaldevelopment.therefore,tosupport
thedevelopmentofsmeshasalwaysbeenonthetopagendaoftheNorwegiangovern-
ment.
theministryoftradeandIndustryhasorganizedthemajorityofitssupporttosmes
throughtheresearchCouncilofNorway(Nfr)andInnovationNorway(IN).Nfrand
INalsocarryouttasksrelevantforsmesforotherministriesandlocalgovernmental
actors.Itisintheinterestofsmesthatfeworganisationsarecarryingouttasksforseveral
25 source:ChinasmesInformationNetwork,www.sme.gov.cn.
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publicbodies,sincesuchasystemiseasytounderstandanduser-friendly.Nfrsupports
researchactivitiesinpublicinstitutionsandprivatefirms.INsupportinnovationactivities
andestablishmentofnewfirms.OneofthemaintargetgroupsforINsactivitiesissmes.
underthemanagementandcoordinationoftheseinstitutions,anumberofgovern-
mentalprogrammeshavebeenestablishedtosupportthedevelopmentofsmes.some
programmesaretargetedatspecificindustriesorindustrialsectors,whileothersare
targetedatspecificgeographicallyconfinedareas.
Opportunities for future cooperation
ApossibleftAwouldnotonlycreatemorebusinessopportunitiesforthesmesofChina
andNorwaytoentereachother’sdomesticmarket,butalsoprovideawiderscopefor
futurebilateralsmescooperation.tohelpensurethatsmesembracethebenefitsofan
ftA,ChinaandNorwaycouldconsider:
•exploringjointlythestrategyandsupportpolicyforthedevelopmentofsmes,
includingensuringthathorizontalrulesdonotdiscriminatesmesbyfavouring
largecompanies;
•promotingcooperationandinformationexchangebetweengovernmentinstitu-
tions,chambersofcommerce,andindustrialassociationsofthetwocountries;
•holdingtradefairsandinvestmentmartsincooperationforsmesofthetwocoun-
tries;and
•reinforcingtrainingandpersonnelexchangebetweensmesofthetwocountries.
5.7 Temporary movement of natural persons
movementofnaturalpersonsbetweenChinaandNorwayisanecessarypartofthebi-
lateraltradeandisessentialtobuildandstrengthenbusinessties.therefore,facilitating
themobilityofnaturalpersonswillpromotebilateraltradeandinvestment,andhelp
ChineseandNorwegianindustryidentifynewopportunitiesarisingfromanftA.
China
Inrecentyears,Chinahasimprovedtheregulationsandpoliciesontemporaryentryof
foreignnationalsinordertofacilitatetheirvisitstoChina.Chinahasarrangeddifferent
typesofvisaandvisa-extensionprocedurestofacilitateforeignnaturalpersons’short
tripstoChina,andstayofadurationofmorethanoneyear.toenterChina,foreign
nationalsshouldapplyforaVisaf,ifhe/shewishestomakeatemporarybusinesstrip;
oraVisaZ,ifhe/sheistoresideinChina.Inaccordancewiththelawofthepeople's
republicofChinaontheentryandexitofAliens,alienswhowouldliketoenterinto
ChinashallapplyforvisastotheChinesediplomaticmissionsorconsularpostsorother
agenciesabroadauthorizedbyministryofforeignAffairsofthep.r.C.theentryof
nationalsfromacountryhavingvisaagreementwiththeChinesegovernmentshall
bedealtwithinaccordancewiththesaidagreement.
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theregulationsonexaminationandApprovalofpermanentresidenceofAliensin
ChinawasimplementedinAugust2004.“residencepermit”wasintroducedinsteadof
“Aliens’residencecredential”inseptember2004.With“residencepermit”,thealiencan
stayinChinawithmultipleentrypermissionintheperiodofvalidity.
Atthesametime,electronicmeanshavebeenincreasinglyappliedinvisaadministration
andpassengerclearanceprocedures.machine-readablevisasareintheprocessofbeing
introduced.thismeasurewillgreatlyreducethewaitingtimeforforeignbusinessper-
sonsatChineseportsofentry.
Norway
19december1996Norwaysignedthecooperationagreementwiththeschengencoun-
tries.duetoorganisationalchangesineuin1997,wherebytheschengencooperation
wasintegratedineu,Norwaysignedanassociationagreementwitheu18ofmay1999.
Norwaybecameoperativemembertotheschengencooperationinmarch2001,and
istherebyobligedtoimplementandapplytheschengenlegislationintheareaofvisa
policyandlegislation.Astandardschengenvisaisvalidforallschengenmemberstates
duringthevalidperiodofthevisa,uptomaximum90daysper180days.Anystayin
Norwayexceeding90days,requireawork-orresidencepermit.Applicationsforthisshall
belodgedtotheNorwegianembassy,whichwillforwardtheapplicationforworkor
residencepermittotheNorwegiandirectorateofImmigrationwhichisresponsiblefor
thehandlingoftheapplications.
toobtainaschengenvisathereareseveralrequirementstobefulfilled.therequire-
mentsofforinstancedocumentationofthepurposeofthejourneyandsufficientmeans
mayvaryfromcountrytocountry,accordingtothevariouspracticalcircumstances.
theschengenmemberstate’slocalconsularposts,shallcooperateinordertoobtain
aharmonisedapplicationoftheschengenlegislation.AttheNorwegianembassyin
beijing,therequirementsforastandardschengenvisaare;allnationalswhowishto
enterNorwaymustmeettherequirementsoftheImmigrationrules.therearemainly
threedifferenttypesofvisastoapplyfor(businessvisa,familyorfriendvisitvisaand
touristvisa).theprocessingtimefortherespectivevisasisindicatedbelow:
businessvisa:upto10workingdays
familyorfriendvisit:uptofourmonths
touristvisa(undertheAdsAgreement):upto15workingdays
Opportunity for future cooperation
ChinaandNorwayrecognizetheimportanceofmakingiteasierfornaturalpersonsto
movebetweentheirtwocountries.furtheropportunitiesforfacilitatingmovementof
naturalpersonswillbeconsideredinthecontextofthefutureftA.
WiththeestablishmentofanftAbetweenChinaandNorway,naturalpersonswilltravel
betweenthetwocountriesmorefrequently.easeoftravelfornaturalpersonsbecomes
isakeyelementforfacilitatingandencouraginggreaterbilateraltradeandinvestment
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links.Consequently,thevisaauthoritiesofthetwocountriesshouldstrengthencoopera-
tionandinthecontextoftheftAnegotiationsfurtheroptionstofacilitatetheissuing
ofvisaswillbeexplored.theftAbetweenChinaandNorwaycouldalsoprovidefora
widerangeofspecificstepstostrengthenbilateralcooperationonmobilityofnatural
persons.
5.8 Trade and investment promotion
Inanageofglobalisation,internationaltradeandinvestmentarebecomingmore
andmoreimportantforacountry’seconomicdevelopment.Inrecentyears,tradeand
economicrelationsbetweenChinaandNorwayhavemadegreatprogress,butthe
volumeofbilateraltradeandinvestmentisrelativelysmallcomparedwithrealdemands
andpotentialofbothcountries.therefore,cooperationontradeandinvestmentpromo-
tionbetweenChinaandNorwaywillbeanissueofgreatsignificanceundertheframe-
workofthefuturebilateralftA.
China
theChinesegovernmenthasalwaysbeenattachingimportancetotradeandinvest-
mentpromotionandmakinggreateffortstocreatenewopportunitiesoftradeand
investmentforenterprisesinallsectors.establishedinmay1952,China’sCouncilforthe
promotionofInternationaltrade(CCpIt)iscomprisedofenterprisesandorganisations
representingtheeconomicandtradesectorsinChina.Itisthemostimportantandthe
largestNgOforforeigntradeandinvestmentpromotioninChina,withthemainaimto
conductsino-foreigneconomicandtechnologicalcooperationthroughvariousactivi-
tiesoftradeandinvestmentpromotion.
Inthemid1980s,foreignInvestmentserviceCentreswereestablishedinmanycities
throughoutChina.WiththesupportofmOfCOm,theChinaInternationalInvestment
promotionCenter(CIIpC)wasestablishedinAugust2001.InitiatedbyCIIpCand15local
investmentpromotionagencies,thefederationofInvestmentpromotionAgenciesof
China(fIpAC)wassetupinmarch2002.twootherimportantgovernmentinstitutionsin
chargeoftradeandinvestmentpromotion,theexecutivebureauofInvestmentpromo-
tionofmOfCOmandthetradedevelopmentbureauofmOfCOm,wereestablished
respectivelyinmarchandJuneof2003.sincethen,ledandcoordinatedbymOfCOm,
acomprehensivenation-widetradeandinvestmentpromotionnetworkhasbeenestab-
lishedinChina.
Atpresent,theannualChinaexportCommoditiesfair,ChinatradeandInvestmentfair,
ChinaNewandhightechnologiesfairandChinaInternationalsmall&medium-sized
enterprisesfairhaveconstitutedanation-levelframeworkoftradeandinvestment
promotion.furthermore,organisationsattheprovinciallevelhavebeenestablishedto
implementtradeandinvestmentpromotionactivitiesinaccordancewiththeneedsof
localeconomicdevelopment.
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Norway
theministryoftradeandIndustryhastheoverallresponsibilityforNorway’sindustrial
policy.Norwayisanopeneconomyandconsequently,internationalisationformsasignif-
icantpartoftheindustrialpolicyandapriorityforthegovernment.Otherministrieslike
theministriesofforeignAffairs,finance,fisheryandCoastalAffairs,energyandpetro-
leumandeducationandresearcharealsoimportantactorsinthisregard.
theministryoftradeandIndustryisresponsibleforpublicsupportsystemsinNorway
thatsupportsNorwegiancompanies.theinternationalpartofthepublicsupportsystem
includesinparticularforexportcredits;gIeKandeksportfinansandInnovationNorway
whohasmanyresponsibilitieswithregardtosupportingcompaniesabroadandat
home.
InvestmentpromotioninNorwayismainlyundertakenbyInnovationNorway.
Asof1January2004,InnovationNorwayassumedthedutiesoftheNorwegianIndustrial
andregionaldevelopmentfund(sNd),theNorwegiantradeCouncil,theNorwegian
touristboardandthegovernmentConsultativeOfficeforInventors(sVO).
InnovationNorwayaimstopromotenationwideindustrialdevelopmentprofitableto
boththebusinesscommunityandNorway’snationaleconomy,enhancethecompeti-
tivenessandprofitabilityofNorwegianenterprisesininternationalmarkets,andto
helpreleasethepotentialofdifferentdistrictsandregionsbyenhancinginnovation,
internationalisation,promotingNorwegianbusinessesabroad,andpromotingNorway
asatouristdestination.forthepurposeoftradeandinvestmentpromotion,Innovation
Norwayassistscustomersthroughtheentireexportandinternationalisationprocess,
actingasastrategicadviser,dooropenerandproblem-solver.Jointpromotionsinclude
exhibitions,delegationsandcampaignstopromoteNorwegiancompaniesabroad.At
present,InnovationNorwayhasofficesinalltheNorwegiancountiesandinmorethan
30countriesworldwide,includingofficesinbeijingandshanghai.theheadofficeis
locatedinOslo.
theConfederationofNorwegianbusinessandIndustry(NhO)andOsloChamberof
Commerce(OCC)havealsobeenplayinganactiveroleinNorwegiantradeandinvest-
mentpromotion.
Opportunities for future cooperation
ChinaandNorwayhavealreadycarriedouteffectivecooperationontradeandinvest-
mentpromotionundertheframeworkofthesino-NorwegianmixedCommission
foreconomyandtrade,establishedin1980.Asub-committeetothecommission,for
promotingbilateralinvestments,wasformedinseptember2006.theestablishment
ofanftAwillfurtherenhancebilateralcooperationontradeandinvestmentpromotion
byallowingthetwocountriestobettersharetheirsuccessfulexperiencesinthisfield.
Areasforfuturecooperationcouldinclude:
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•strengtheningcooperationonhumanresourcedevelopmentandexpertise
relatedtotradeandinvestmentpromotion;
•enhancingcooperationbetweennon-governmentalorganizations,especially
guildsandchambersofcommerceofthetwocountries,aswellasensuringthat
rulesforchambersofcommercearenotahindrancefortheirformalestablishment;
and
•creatingopportunitiesforbusinessestobenefitfromtradeandinvestment
promotionactivities,suchastradefairsandinvestmentmarts.
5.9 Environment and technology cooperation
thegovernmentsofChinaandNorwayrecognisetheimportanceofaddressingenviron-
mentalchallengeswhilststrivingforcontinuedeconomicdevelopment.environmental
technologiesplayakeyroleinthis,asthesetechnologiesaddresspresentenvironmental
problemswhilstbeingapartofeconomicgrowth.giventheimportanceofsecuring
sustainabledevelopment,NorwayandChinawishtocontinuetheircooperationinthe
fieldofenvironmentandtechnology.theireffortsincludeencouragingthedevelopment
ofacommercialmarketforenvironmentaltechnologiesandofcommercialactorswithin
thisfield,oneexampleoftheinitiativesthathasbeenmadebeingtheestablishmentof
theNorwegianenergyandenvironmentConsortium(NeeC).bothgovernmentswelcome
otherinitiativesencouragingcommercialcooperationonenvironmentaltechnologies.
furthermore,bothChinaandNorwayrecognisethepivotalroleofenforcingenviron-
mentalregulationstocreateamarketforenvironmentaltechnologies.environmental
policiesandregulationscreatebusinessopportunitiesforenvironmentaltechnologies
andservices,andisanimportantdrivingforcefortechnologyinnovationandtransfer.
Asuccessfulcooperationontheenvironmentthroughabilateralmemorandumof
understanding(mou)betweenChinaandNorwayhasbeenongoingformorethana
decade.theworkhasfocusedonclimatechangeissues,hazardouschemicals,biodiver-
sityandairandwaterpollution,andhasaimedtoincreasecapacityonandstrengthen
theinstitutionsthatworkwiththeseissuesinChina.thecooperationprogramhasalso
includedeffortstointroduceNorwegianenvironmentaltechnologiestoChina.someof
theprojectsexecutedunderthemouhavecontainedelementsthatarehighlyrelevant
forafreetradeagreement,anexampleofthisbeingaprojectontheIsO14000standard
(projectnumberChN-0047).theoverallprojectaimwastoenableChineseindustry
andgovernmentadministrationatbothcentralandlocallevelstousethisinternational
standard.AsproductionprocessesconformingtotheIsO14000/14001standardmay
leadtofacilitatedmarketentranceandacompetitiveadvantageinwesternmarkets,
whilstnegativeenvironmentaleffectsofproductionarereduced,thisprojectcontrib-
utedtowardstheaimsofbothtradecooperationandtheenvironmentalmou.themost
recentreviewofthesino-Norwegiancooperationonenvironmentsuggestedthatthe
projectsunderthismoucouldbeusedasgatewaystofurthercommercialcoopera-
tion.Additionally,theWorkinggroupontradeandtheenvironmentundertheChina
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CouncilforInternationalCooperationonenvironmentanddevelopment(CCICed)might
provideusefulinsightonhowtoaddressquestionsrelatedtotradeandenvironment.
bothChinaandNorwayencouragetheexplorationofcooperationactivities,hereunder
capacitybuilding,thatsupporttheintentionsofatradeagreementandenablefurther
stepstowardssustainabledevelopment.
thegovernmentsofNorwayandChinaaredeterminedtomakethegoodsandserv-
icestradedbetweenthetwocountriescomplywithhighstandardsfortheprotection
ofhumanhealthandtheenvironment.ItisrecommendedthatChinaandNorwayto
engageinfriendlyexchangeofinformationabouteachothers’systemsandstandards,
soastoensureanunderstandingoftheapplicablerulesineachcountry.
5.9.1 Environmental protection
China
theChinesegovernmenthasattachedgreatimportancetoenvironmentalprotec-
tion,makingitabasicnationalpolicy,whilstsustainabledevelopmentisanimportant
strategy.
In1998,theChinesegovernmentchangedthenameofthestateenvironmentalprotec-
tionbureautothestateenvironmentalprotectionAdministration(sepA),andelevated
ittotheministeriallevel.Inthepolicyregime,Chinahasformulatedorrevisedmajor
lawsonenvironmentalprotectioninthepastdecade,suchasthoseonpreventionand
controlofwaterpollution,marineenvironmentprotection,preventionandcontrolof
airpollution,aswellasevaluationofenvironmentalimpact.thestateCouncilhasalso
formulatedorrevisedmorethan50administrativeregulationstostrengthenenviron-
mentalprotection.Atpresent,thereareabout3,200environmentalprotectionadminis-
trationdepartmentsatdifferentlevelsalloverChina,with167,000peopleengagingin
environmentaladministration,monitoring,scientificresearch,publicityandeducation.
Whilemakinggreateffortstoimprovetheinstitutionalframework,Chinahasalso
investedheavilyinenvironmentalprotection.between2001and2005,forexample,the
investmentreachedus$14billion,whichwasmainlyusedtocontroltheduststorm
sourcesthreateningthecapitalarea,toprotectnaturalforestsandtoturncultivated
farmlandbackintoforestsorpastures.
Inthe11thfive-yearprogramforeconomicandsocialdevelopment(2006-2010),China
hasclearlysetforthitsmaingoalsforenvironmentalprotectionforthenextfiveyears:
by2010,whilethenationaleconomywillmaintainarelativelystableandfastgrowth,the
environmentalqualityofkeyregionsandcitieswillbeimproved,andthetrendtowards
ecologicaldeteriorationwillbebroughtundercontrol.theprogramalsorequires
energyconsumptionperunitofgdptodeclinewith20%,comparedwiththeendof
the10thfive-yearplanperiod.thetotaldischargedamountofmajorpollutantswillbe
reducedby10%,andforestcoveragewillberaisedfrom18.2%to20%.
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Apartfromdomesticefforts,Chinahasalsoaccededtomorethan50international
conventionsonenvironmentalprotection,andhasbeenactiveinperformingthe
obligationsstipulatedintheseconventions,whichincludetheunitedNationsframe-
workConventiononClimateChangeanditsKyotoprotocol,themontrealprotocolon
substancesthatdepletetheOzonelayerandtheConventiononbiologicaldiversity.
Norway
theNorwegiangovernmentattachesgreatimportancetoenvironmentalprotection.
Norwaywasamongstthefirstcountriesintheworldtoestablishaseparateministry
fortheenvironmentin1972,incontextoftheunitedNationsConferenceonhuman
environmentinstockholm,sweden.theministryhassixsubordinateagencies;the
NorwegianpollutionControlAuthority,thedirectorateforNaturemanagement,the
directorateforCulturalheritage,theNorwegianmappingAuthority,theproductregister
(theAuthorities’CentralregisterofChemicalproducts),andtheNorwegianpolarInsti-
tute.theNorwegianpollutionControlAuthorityisresponsibleforsupervisoryactivities
pursuanttothepollutionControlAct,theproductControlActandtheirregulations.
Norwayissignatorytoseveralinternationalconventionsandagreementsontheenvi-
ronment,suchastheunitedNationsframeworkConventiononClimateChangeand
itsKyotoprotocol,theConventiononbiologicaldiversity,thestockholmConvention
onpersistentOrganicpollutants(pOps),therotterdamConvention,theConvention
onInternationaltradeinendangeredspeciesofWildfaunaandflora(CItes)andthe
montrealprotocolonsubstancesthatdepletetheOzonelayer.
5.9.2 Renewable energy exploitation
toohighemissionofgreenhousegases,causingglobalwarmingandclimatedeteriora-
tionatanacceleratedratefarbeyondourexpectations,seriouslythreatensthesustain-
abledevelopmentofourhumansociety.Newenergyresourceshavetremendouspoten-
tial,areenvironmental-friendly,aswellassustainable,andarethusimportantsourcesof
energyforharmoniousdevelopmentofnatureandthehumansociety.Confrontedwith
theincreasinglyunbalancedsupplyanddemandofthetraditionalsourcesofenergy,
andtheseverechallengeofglobalwarming,countriesallovertheworldoughtto
strengthentheexplorationandutilizationofthenewenergiesanditstechnologies.
ChinaandNorwayareindialogueaboutcreatingaspecialframeworkforcooperation
onclimatechangeissues,tobeknownasthe“frameworkAgreementforCooperation
anddialogueonClimateChange”.thiswillbeasignificantcommitmentthatmightfruit-
fullybereflectedinotherareasofsino-Norwegiancooperation.Withtheappropriate
provisions,afreetradeagreementmayprovidestimuliforcommercialcooperation
withintheareaofreducingemissions.thiswillbenefittheeffortstoaddressthechal-
lengeofclimatechangeandprovideimportantbusinessopportunitiesforbothChinese
andNorwegiancommercialactors.Carboncaptureandstorage(CCs)willmostlikely
beanimportantelementinthecooperation.CCsstandsoutasapromisingtechnology
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thatcouldmitigatethereleaseoflargequantitiesofCO2totheatmosphereifapplied
onfossilfuel-firedpowerplants.Norwegianuniversitiesandresearchinstitutionshave
extensivecompetencepertainingtoCCs,withaspecialised,nationalprogramme,ClImIt,
forgaspowertechnologieswithCCs.
CooperationregardingtheCleandevelopmentmechanism;the‘frameworkAgreement
forCooperationanddialogueonClimateChange’,alsoemphasizesfacilitationofcooper-
ationthroughtheCleandevelopmentmechanism(Cdm).sinceChinaisamajorprovider
ofCertifiedemissionreductions(Cers),andNorwaywillhaveasubstantialdemandfor
suchassets,thiscooperationmaygainimportanceintheyearstocome.Astableand
predictableinvestmentandbusinessenvironment,simplifiedproceduresbothonthe
nationalandinternationallevel,aswellasfurtherenhancingthecredibilityoftheCdm
asamarketmechanismandatooltomitigategreenhousegasemissions,willbeof
importancetothoseinvolvedinthemarketsbothontheChineseandNorwegianside.
China
China,asamajorenergyoutputandconsumptioncountry,isnowfacingtheheavypres-
sureofenergyshortage.therefore,Chinahasnoalternativebuttoexploreandutilise
newsourcesofenergytorealisethesustainabledevelopmentofthenationaleconomy.
Withtheimplementationofthe11thfive-yearplanstartingin2006,thecentralgovern-
mentofChinaplacesgreateremphasisonenergysaving,emissionofpollutantsand
environmentalprotection.themedium-andlong-termenergydevelopmentprogram
issuedbytheChinesegovernmentin2007expresslystatedthatby2020,therenew-
ableenergywouldaccountforabout16%inthetotalenergyconsumption.thespecific
renewableenergytargetsby2020include:
•Wind:30gW
•solarpowerpV:1.8gW
•solarheater:300millionm2
•biomasspower:30gW
•biomassdiesel:2mt
•biomasssolidfuel:50milliontonnes
•smallhydropowerstations:80gW
China’s11thfive-yearplanpointsoutthatgreateffortshouldbemadetodevelopthe
sourcesofrenewableenergy,implementpreferentialfiscalandtaxationpolicies,invest-
mentandcompulsorymarketsharepoliciestoencouragetheproductionandconsump-
tionofrenewableenergy.therefore,thenewenergyandrenewableenergymarkethas
hugepotential,providingunprecedentedopportunitiestothenewenergycompanies
andinstitutionsathomeandabroad.
Asamilestoneforthecountry’senergysavingcampaign,China Renewable Energy Law,
issuedbyChinesepeople’sCongressonfeb.28,2005,becameeffectiveon1January
2006.thegoalofthelawistomeetshort-termenergyneedswhilestrengtheninglong-
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termsustainabledevelopmentobjectives.thelawaimstoreduceairpollution,safe-
guardhumanhealthandtheenvironment,andprovidepowertooff-gridruralareasas
wellascontributetomitigatingclimatechange.thelawsynthesizesbasicprinciplesof
themarketeconomyandthepoliticalobjectivesofenergysecurity.Incentivepolicies
outlinedinthelawareintendedtoencouragethedevelopmentofrenewabletechno-
logiesandprovidemarketopportunitiesforrenewableenergycompaniessothatlocal
governments,energyenterprisesandthepubliccanpromoteandutilizerenewable
energy.
Norway
thestorting(parliament)setsthepoliticalframeworkfortheenergysectorandwater
resourcemanagementinNorway.theministryofpetroleumandenergy(mpe)has
overalladministrativeresponsibilityforthesesectors.AmongtheActsthatregulate
waterresourcemanagementaretheWatercourseregulationAct,theIndustrial
ConcessionAct,theWaterresourcesActandtheenergyAct.
Norwegianauthoritiessetatargetin2001ofsavingenergyandcontributetonew
environmentalenergythattogetherwillgiveminimum12tWhbeforetheendof2010.
Norwegianscientists,professionalsandtradeandindustryareamongtheleadingin
theworldwithinanumberofareasthatconcernrenewableenergysources.thisexpert
knowledge,combinedwithgoodeconomicframeworkconditionsandaccessibletech-
nology,shouldlaythegroundforahealthyexplorationofthoseofourresourcesthat
haven’tbeenexploitedupuntiltoday,anexplorationthatisbasedontradeandindustry.
Norwegiancompanieshavealongtraditioninestablishingactivitiesbasedonsociety-
relatedneeds.thereisreasontoexpectmanysmallandmiddle-sizedNorwegian
suppliersofequipmentandserviceswillbecomeinvolvedinthefuturewindpower,
wavepowerandbioenergyindustry.
Sino-Norwegian cooperation on renewable energy technologies
NorwayandChinaenjoyasubstantiveandfriendlycooperationinthefieldofrenewable
technologies.Inordertocementthiscooperationthegovernmentsofbothcountries
haveconcludedimportantagreements.
In1997aletterofIntentonCooperationondevelopmentinhydropowerbetween
ministryofWaterresources(mWr)andmpewassigned.In2006amouonenhancing
CooperationinenergyConservationandrenewableenergywassignedbetween
NationaldevelopmentandreformCommission(NdrC)andmpe.
AsthegovernmentsofChinaandNorwayarestrengtheningthetradeandeconomic
relationsbetweenthecountries,strengthenedcooperationwithinimportantrenewable
energynicheswouldbenefitsustainabledevelopmentinNorwayandChina.Areasof
NorwegianexpertiseinwhichChinaandNorwaymaywanttoexplorethepossibility
ofstrengthenedcooperationareasfollow:
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Hydropower
Norwayalreadybasesthemainpartofstationarypowerproductionontherenewable
energysourcelarge-scalehydropower.Norwayisthesixthbiggestproducerofhydro-
powerintheworld,andtheinstalledcapacityis28300mWwhilsttheaverageproduc-
tioncapacityis120tWhperyear.Norwegiancompanieshaveagreatdealofexperience
inthedevelopmentandconstructionofhydropowerprojects.Norwayalsohasastrong
supplierindustrythatdeliversgoodsandservicestohydropowerconstruction,alsoat
theinternationallevel.theNorwegianhydropowerindustrydeliversturbinesandelec-
tromechanicalproductstoothercountries,andalsoconsultantserviceswithinplanning,
projectingandotherengineeringtasks.thereisalsoanincreasingdemandforNorwe-
giancompetenceinsystemoperationandpreparationforapowermarket.
Wind and wave energy
Norwayhaslargewind-andwavepowerrecoursesalongthelongcoastthataresought
tobeexploredandexploited.
Norwegiancompanieshaveextensiveexperiencefromoffshoreoilandgasactivitiesand
canutilisethisindevelopingoffshorewindandwavetechnologies.Norwegiancompa-
niesalsohaveuniqueexperienceinoperatingwindturbinesinharsharcticclimate.
someoftheNorwegiancompanieswithinthewindpowerindustryarescanwindthat
produceswindturbines,sWAyandNorskhydro(hywind)thathavedevelopedprojects
forfloatingwindturbinesandOwectowerwhichisdesigningfoundations(tripods)for
offshorewindpower.
sINtefenergyresearch,Instituteforenergytecnology(Ife)andtheNorwegianuniver-
sityofscienceandtechnology(NtNu)arecooperatingonwindpowerresearchand
development.
ApromisingtechnologyinNorwayisoffshorewindpowerfaroffthecoast.It’sfreeof
emissions,hardlycomesintocontactwithbirdlife,canbeplacedoutsidefishinggrounds
andshippinglanes,andwillbeoutofsightofthepopulation.severalNorwegiancompa-
niesareleadingthewayinthedevelopment,basedamongotherthingsonexperience
fromtheoffshoreoil-andgasindustry.
Norwegiancompaniesalsodoresearchtodevelopotherpotentialresourceslikewave
power,tidalpowerandsaltpower.
Solar energy
Norwegianindustryisamongthelargestproducersofsiliconfortheproductionofsolar
cellsintheworld,andstillexpanding.AnewfactoryinÅrdalstartsdeliveriesofsiliconat
theendof2007,anothernewfactorynearKristiansandstartsdeliveriesofsiliconin2008.
theproductionofsiliconisenergyintensive.Norwayhasalonghistoryofenergyinten-
siveindustrybecauseoftheabundanceofinexpensiveelectricitythroughhydropower
plants.Norwegiancompaniesarealsoactiveintheproductionofsolarthermalcollec-
tionsystems.
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AmongtheNorwegiancompanieswithinthesolarindustryareelkemsolar,Norsunand
renewableenergyCorporation(reC).reCisactiveinthewholechainofactivitiesrelated
tosolarcellsandistheworld’sbiggestcompanywithinthesolarindustry.reCisunique
inthatitdeliversgoodsandservicesinthewholevaluechainforsolarenergy.reCisthe
world’slargestproducerof“solargrade”siliconandwafers,andaconsiderableproducer
ofsolarcellsandmodules.
Bio energy
Norwayhasgreatpotentialinincreasingtheutilizationofbioenergy,bothfordistrict
heatingplantsandasrawmaterialforbioethanol.
Concluding remarks
thisreportillustratesthattherearesignificantcomplementaritiesofdemandand
competencebetweenNorwayandChinainthefieldofrenewableenergytechnologies
andotherareasofenvironmentalcooperation.thebenefitsofthis,bothfortheeconomy
andtheenvironment,maybefacilitatedthroughappropriatelanguageinafuturefree
tradeagreement.bothgovernmentsalsorecogniseapossiblefutureftAasausefultool
toachievetheircommongoalofsustainabledevelopmentandharmoniousdevelop-
mentofnatureandhumansociety.
5.10 Development Cooperation
thetwosidesrecognisethatundertheframeworkofOfficialdevelopmentAssistance,
ChinaandNorwayhaveenjoyedyearsofproductivecooperation,whichnotonlyhas
madepositivecontributionstoChina’seconomicandsocialdevelopment,butalso
contributedinenhancingthebilateralrelations.Inthiscontext,bothsideswould
furtherexploreandencouragecooperationinthefieldofclimatechange,environment
protectionandotherissuesofcommoninterest.
100
Chapter six: Conclusions and recommendations
ChinaandNorwayhaveasubstantialbilateraleconomicrelationship,whichcouldbe
enhancedandfurtherdevelopedthroughabilateralftA.thisstudydemonstratesthata
bilateralftAencompassinggoods,services,investmentandeconomiccooperation,and
isconsistentwithWtOrules,wouldsupportandreinforcebilateraltradeandinvestment
linkages,andplayanimportantpartinthecloserintegrationofthetwoeconomiesover
thelongterm,andconsequentlydelivertradeandeconomicbenefitstobothcountries.
furthermore,thebilateralftAwouldbetradecreatingfortheworldasawhole,thereby
strengtheningeachcountry’smultilateralandregionaltradepolicyobjectives.
6.1 Key Conclusions
Trade in Goods
thestudyshowsthattariffshindergrowthinbilateraltradebetweenChinaandNorway.
thereexistsscopetofurtherreduceandeliminatetariffs.thestudyexploresthepossi-
bilityoffurtherliberalisationofgoodstradebeyondtheprogressalreadymadeinthe
WtO,andrecommendsthatabilateralftAshouldremovetariffsonindustrialgoods,
andeliminateandreducethetariffsforagriculturalproducts.Whilerecognizingthatthe
removalandreductionsoftariffswouldbenefitthetwocountries,thestudyalsoidenti-
fiesconcernsrelatedtodomesticincome,employmentimpacts,ruralpolicyandfood
securityoftariffeliminationorreductiononcertainsectors,whichshouldbetakeninto
accountinthefutureftAnegotiations.
thestudyalsoidentifiesnon-tariffbarriers(Ntbs)thathavearestrictiveeffectonbilat-
eraltrade.ItwouldbeimportantforChinaandNorwaytoensurethatthesenon-tariff
measuresdonotconstituteunjustifiedbarrierstotrade.Itissuggestedthatnon-tariff
measuresandimproveddisciplinesandenforcementinareassuchastechnicalregula-
tionsandstandards,andsanitaryandphytosanitarymeasures,shouldbeaddressedin
thefutureftAnegotiations.
Trade in Services
theservicesectorisbecominganimportantcomponentoftradebetweenChinaand
Norway,andhasagreatpotentialforgrowthinthefuture.thestudynotesthegener-
allyopennatureofNorway’sservicesregime,andthemajoropeningofChina’sservices
sectorsassociatedwithChina’sWtOaccessionindecember2001,butalsodemonstrates
arangeofimpedimentstothebilateralservicestradebothinspecificindustriesand
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acrossthesector.takingthesefactorsintoaccount,thestudyrecommendsthatChina
andNorwayshouldstrengthencooperationandpromotebilateraltradeinservices
underthefutureftAforthebenefitofbothcountries.
Investment
theinvestmentflowsbetweenChinaandNorwayareatpresentrelativelymodest
comparedtobilateraltrade,butthebilateralinvestmentlinkagesaregrowingatahigh
speed.thestudyidentifiesarangeofwaysthatcouldfurtherfacilitateincreasedlevels
ofinvestmentbetweenChinaandNorway.Itisrecommendedthatbuildingonexisting
cooperation,anftAshouldfurtherpromotebilateralinvestment.
Other areas of Cooperation
thestudyalsoidentifiesthefollowingsector-specificissuesandbroaderareasand
opportunitiesforfacilitationandcooperationwiththeobjectivesofstrengtheningbilat-
erallinkagesthroughanftA:tradefacilitation,e-commerce,sanitaryandphytosanitary
measures(sps),technicalregulationsandstandards(tbt),intellectualpropertyrights
(Ipr)smecooperation,temporarymovementofnaturalpersons,tradeandinvestment
promotion,environmentandtechnologycooperationanddevelopmentcooperation.
thestudyrecommendsthatbuildingonexistingcooperationintheaboveareas,anftA
wouldbeexpectedtointensifyfurtherbilateraltradeandeconomiccooperationwith
aviewtoachievemutualbenefits.
6.2 Recommendations
thisstudyhasdemonstratedthatsignificantcomplementaritiesexistbetweenthe
ChineseandNorwegianeconomiesandthataftAwouldbenefitthepeopleandecono-
miesofbothcountries.tosecurethesebenefitsandbuildonthelongandwarmrela-
tionshipsbetweenthetwocountries,thisstudyrecommendsthatnegotiationsona
ftAbetweenChinaandNorwayshouldcommenceassoonaspossible.
Published by:Norwegian Ministry of Trade and Industry Additional copies may be ordered from:Government Administration ServicesPost og distribusjonE-mail: [email protected]: + 47 22 24 27 86 Publication number: K-0702 EDesign: Lysvold DesignPrinted by: Government Administration Services – 03/2008 – Impression 200