Conference of the EFTA Consultative Committee
Oslo, 27-28 February 2003

Opening statement by Kim Traavik, State Secretary
Ministry of Foreign Affairs of Norway

Social partners in the new Europe: EEA, EU & EFTA

Distinguished participants,
ladies and gentlemen,

On behalf of the Norwegian Government, let me extend to all of you a warm welcome to Oslo and this important conference, which is being held under the auspices of EFTA’s very active and productive Consultative Committee. And let me also convey the regrets of Foreign Minister Jan Petersen, who was unable to attend due to pressing parliamentary business.

Norwegian voters, as you may know, have twice turned down membership of the EC/EU. It may therefore sound paradoxical that we welcome and support other countries’ aspirations for membership.

But there is no contradiction here. EU enlargement is changing the political map of Europe. In little more than a year, ten new member states will be joining the Union. At that point, most of Western and Central Europe will be part of the EU.

The last vestiges of the East-West divide are finally being swept away. A new foundation is being laid for ensuring stability and prosperity in our part of the world. The vision of a European continent whole and free is fast becoming reality.

And at the same time the EU has made clear that the process of enlargement will continue. Last December’s Copenhagen Summit stated very forcefully that the doors of the Union will remain open to European states that share its values and fulfil the criteria.

The Union drove home that point by confirming its willingness to accept Bulgaria and Romania as new members in 2007; by reaffirming Turkey as a potential future member; and by concretising the European perspective of the countries of the Western Balkans.

In a few years’ time the first of the latter, Croatia, may join. Europe is indeed undergoing fundamental changes.

And at the same time the Union is taking forward its relations with its New Neighbours following enlargement; Russia, Ukraine, Moldova and Belarus.

Like all European countries, Norway and the other EFTA countries will benefit in a general political way from this historic process of European unification. Put very simply: Europe will be a safer and more prosperous place. And that will be in the interest of all Europeans.

The EEA Agreement is the most comprehensive agreement ever concluded with any external partners, both by the EEA EFTA countries and by the EU. It provides the proverbial level playing field. It offers our economic operators full participation in the EU’s internal market, subject to the same rules and equal treatment in the areas covered by the Agreement.

Moreover, it gives us access to most of the EU’s very interesting and fast growing co-operation programmes in areas outside the four freedoms, such as research, education, environmental protection, consumer protection and social policy.

In most sectors and from most viewpoints, the EEA Agreement has been a good agreement for Norway. Our participation in the internal market, where we sell almost half of what we produce in Norway, has basically functioned as foreseen.

And Norwegian legislative standards have been substantially raised in key areas as a result of our EEA membership. Standards for the protection of health, safety, consumer interests and the environment have indisputably been enhanced.

This actually came as a surprise for many in Norway who had thought that Norwegian legislation in areas such as environmental protection was superior to that of the EU.

We have also established a number of other important co-operation arrangements with the EU, including the Schengen association agreement between Norway and Iceland on the one hand, and the EU on the other. And let us not forget the political dialogue on foreign policy issues that takes place in the margins of the EEA.

At the same time, there is no denying that our relations with the EU also present us with a number of challenges.

There is first of all a problem related to decision-making. Through the EEA we take on all the obligations that fall within the scope of the Agreement. However, the rules are very much set by the EU, and the EEA Agreement does not provide access to the decision-making bodies of the EU. Finding ways of influencing relevant processes in the European Union is a significant challenge for the EEA EFTA countries. There are no easy or obvious solutions. This challenge seems likely to become even greater in the next few years because of EU enlargement eastwards and southwards. Enlargement will clearly further shift the balance between the EU and the EEA EFTA countries.

And we must realistically recognise that in Brussels, there is less awareness of and knowledge about the EEA Agreement than there used to be. This, too, is a real challenge.

Our EFTA partner Switzerland, which turned down membership in the EEA in a referendum in 1992, has recently entered into a set of trade agreements with the EU. In some respects these agreements have the effect of extending parts of the internal market to Switzerland as well.

Together, the EFTA countries enjoy the distinction of having the highest foreign trade per capita of any trade grouping in the world. Our welfare and standard of living are heavily based on our being competitive internationally. Hence, it is vital to provide our economic operators with fair and equal conditions of competition in all markets of any significance.

For this reason, we have together developed the world’s second largest network of free trade agreements. This free trade network at present comprises 19 countries, including all the candidate countries to the EU except Cyprus and Malta. The agreements will help to ensure a smooth transition to the much more comprehensive co-operation that will be established after the candidate countries join the EU.

Article 128 of the EEA Agreement stipulates that every country that joins the European Union shall also apply to join the EEA. We very much look forward to extending and deepening our co-operation with the acceding countries in all the areas covered by the EEA.

From this perspective, the EU enlargement negotiations have in effect also been conducted on behalf of the EEA EFTA countries, since the adaptations and transitional periods agreed upon will by and large also have to apply in the EEA.

We are now negotiating the conditions for enlarging the EEA. I would note at the outset that Norway and Iceland, in contrast to some present EU members, have not requested transitional arrangements concerning the free movement of persons within the enlarged EEA.

One area of substance that has been and continues to be of concern to Norway and Iceland is market access for fish. Under EFTA Free Trade Agreements with the new members, which also cover fish, we have developed significant new markets, to the benefit of exporters, processing industries and consumers.

Unfortunately, the EEA regime for trade in fish is not very satisfactory, inasmuch as there are high duties on certain marine products. Furthermore, we are not protected against threats of antidumping and countervailing measures.

We have noted with interest that representatives of the processing industries in the EU have pointed out that there is an increasing shortage of fish in the EU. Consequently, they argue that barriers to trade for Norwegian and Icelandic fish should be eliminated, for the benefit of traders, industries and consumers in the EU itself.

We share the same ambition. In general, enlargement of the EU and the EEA is an exercise in eliminating barriers and promoting trade and the efficient use of resources. Hence, we strongly feel that the process should not result in the re-establishment of trade barriers in Europe.

This is a major bone of contention in our ongoing discussions with the EU, and I count on the support of the acceding countries, which I assume share our interests in this regard.

The second main topic of the negotiations on EEA enlargement is the question of financial contributions from the EEA EFTA states.

On the Norwegian side, we share the view that the considerable economic and social disparities in Europe that are part of the heritage of the past must be gradually eliminated.

To that end, we have established a national action plan for co-operation with the candidate countries. The objective is to help them prepare for and facilitate their accession to the EU and the EEA.

And through the existing EEA Financial Instrument we supplement the efforts already undertaken by the Community to reduce social and economic disparities among current members, in keeping with the objectives of the EU Cohesion Fund.

We are, in other words, already contributing to bridging economic and social gaps in the EU, and we are prepared to continue doing so following enlargement.

But the level of EFTA EEA support will have to be reasonable. The idea that the contributions of the EFTA EEA countries should be comparable to those of present member states, in our view is not justifiable. Third countries do not enjoy the same rights and privileges as member states.

In short, we do not consider the principles presented by the European Commission for calculating the future financial contributions of the EEA EFTA states to be either fair or balanced. Nor are they anchored in the EEA Agreement itself.

Even though positions on these issues as of now remain divergent, I am confident that acceptable solutions will be found, so that the simultaneous enlargement of the EU and the EEA can take effect on 1 May 2004, as planned, thereby safeguarding the homogeneity of the single market.

Adequate information is a prerequisite for fully using the opportunities offered by this framework. On the EFTA side, we are painfully aware that the level of knowledge about the EEA, both in the present EU countries and in the candidate countries, is less than adequate. This, too, is a challenge that we have to respond to.

The main purpose of the EEA is to integrate the EEA EFTA countries into the EU’s internal market, offering the economic operators a level playing field and a framework that promotes economic efficiency and international competitiveness. At the same time the EEA should also safeguard essential interests such as health and safety, protection of consumers and the environment, and social justice and cohesion.

Hence, the social partners in all our countries are the major stakeholders in the success of this venture.

I therefore wish you every success, and hope you will enjoy your stay here in Oslo.