“The fisheries agreement Norway has reached in connection with the enlargement of the European Economic Area (EEA) guarantees market access for the most important export products to the new member states,” says Minister of Fisheries Svein Ludvigsen. At the same time, Norway has not opened for discussion with regard to foreig investment in Norwegian fishing vessels.

Norway and the European Union (EU) have agreed on a bilateral solution for trade in fish after the enlargement of the EU. Norway has received compensation for the loss of free trade in fish with the accession countries in the form of duty-free import quotas to the EU for its most important export products of herring and mackerel. These quotas pertain to frozen herring fillets and herring flaps, frozen round herring and frozen round mackerel, products comprising the lion’s share of Norwegian fish exports to the accession countries.

The fisheries agreement involves the following duty-free quotas: 67,000 tonnes of frozen herring fillets and herring flaps, 44,000 tonnes of frozen round herring and 30,500 tonnes of frozen round mackerel.

The duty-free quotas are based on trade figures for the period 1999 – 2001, the three best years for Norwegian exports to the accession countries. The quotas have been adjusted upwards by a mark-up of approx. 20% over the figure on which the calculations were based, with a deduction for the part of the year the EU has duty-free import. In other words, the agreement contains a dynamic element that ensures the possibility of expanding duty-free trade above the current level.

“The quota for fillets is high and will help to secure jobs in the industry, ” says Svein Ludvigsen.

In addition to the quota compensation, the current 15% tariff on frozen herring flaps to the EU will be reduced to 3% starting on 1 May 2004. Herring fillets and herring flaps will subsequently enjoy the same tariff preference. This improvement in tariff treatment will apply to both Norway and Iceland. However, the existing difference in treatment of herring fillets and herring flaps between Norway and Iceland will be maintained, i.e. 3% for Norway and duty-free for Iceland. This difference has its origins in historical differences in the countries’ respective trade agreements from 1973 and is not related to the negotiations that have just concluded. Herring flaps are the largest single export product that to the accession countries.

Norway has also obtained an increase in its duty-free quota of frozen shelled shrimps from 5,500 tonnes to 8,000 tonnes. At the same time, Norway will implement the EEA Agreement’s measures on transit, i.e. EU vessels will be allowed to land and transport fish through Norway for further sale in the EU.

Norway and the EU also agree to try to harmonise the origin rules for fish. This will simplify trade in fish, while reducing the administrative burdens on the industry.

The Polish objections to the original agreement have been accommodated by splitting up the quota for frozen round mackerel and spreading it evenly through the year. In practice, the quota will be split among three periods that will apply outside of the duty-free period from February to June, which the EU is obligated to maintain regardless. Quotas are usually opened only at the beginning of the year. Any unused quotas from earlier in the year will be transferred to the last period so that the total duty-free quota is maintained. Opening the quota several times during the year will help to enable the Polish fish-processing industry to obtain a more steady supply of duty-free raw materials throughout the year.

The solution to split the mackerel quota up into periods is based on a proposal from Norway and protects Norwegian interests. The agreement also includes a review clause so that any adjustments to the system that may be necessary can be made.