Book Description

The Trade Policy Review Mechanism (TPRM) is a permanent feature of the World Trade Organisation as set up under the Marrakesh Agreement in January 1995. Under the TPRM, the trade policies of all WTO Members are subject to periodic review. The reviews are conducted by the Trade Policy Review Body (TPRB) on the basis of a policy statement by the Member under review and a comprehensive report drawn up by the WTO Secretariat. This report covers Norway's economic environment, trade policy regime framework and objectives, trade policies and practices by measure and trade policies by sector. The report concludes that Norway's economic performance has been solid and that the standard of living in Norway is high. This was achieved due to a liberal trade regime, disciplined macroeconomic policies and the deft management of natural resources. Norway is commended for its support to developing and least developed countries, including through both direct aid and tariff preferences. Against this positive background, Norway faces the long-term challenge of an ageing population and an economy closely linked to the production of exhaustible hydrocarbon resources. Sustaining current living standards will thus be linked to reducing remaining distortions and hastening the relatively low pace of productivity growth, particularly through further liberalisation efforts. Above all, this would call for rationalising assistance to the agricultural sector. Other distortions also need addressing, including those that may arise from certain investment barriers to non-EAA investors and from subsidies for regional and industrial-policy reasons.