Adress at opening of Norwegian Business Day

The overwhelming interest in this seminar is a testimony to the quality of relations between Norway and Lithuania. The trade of the participants here today is not only business. You are also builders of networks - networks with deep historic roots.

Several hundred years ago, trade flourished between Norway and the region on the southern shores of the Baltic Sea. Then the drama of European history took our nations on different paths - and with much suffering inflicted upon the people of Lithuania. Our peoples were literally sealed off from each other. The networks and the routes of trade were reduced to a minimum.

Since 1990 we have embarked on a voyage of rediscovery. I have also come here to vouch for the solidity of Norway as a business partner. It is a great pleasure for me to be present here at the opening of Norwegian Business Day in Lithuania. It is a particular pleasure to do so in the presence of Prime Minister Stankevicius. Yesterday we discussed how to strengthen bilateral relations and we agreed on the importance of developing trade and investment. I take the Prime Minister's presence here today as a recognition of what Norwegian business and industry may have to contribute to the reform process in Lithuania.

A hundred years ago, Norway was still a poor country - among the poorest in Europe. We were not yet a fully independent country, and we had little or no industry. The 20th century has been a time of industrialization and democratization, two processes which have gone hand in hand. Democracy and the rule of law have been built from below, by extending political, economic and social rights to everyone.

As our industry has matured, Europe has remained Norway's main marketplace. The 15 countries of the European Union, including our Nordic neighbours receive more than 80% of our exports. Norway is fully integrated into the European internal market. The agreement on the European Economic Area provides the same rights and obligations for all economic operators in an area covering 18 Western European countries.

Norway's economy is in sound shape. Unlike most member states of the European Union, we fulfill by a wide margin the economic stability criteria set out by the Treaty on the European Union. Norway will balance its budget and expects to run a surplus for a number of years. Our assets abroad now exceed our debts, and we are likely to remain an international creditor.

Trade between Norway and Lithuania is now expanding rapidly. Norwegian export has increased by 82% from 1992 to 1995, reaching a total value of USD 31 million. Norwegian imports are up by nearly as much, reaching a total value of USD 28 million last year. Fish is still our leading export product on the Lithuanian market. In return timber and wood products dominate the imports from Lithuania. But the prospects of economic relations go beyond raw materials. Norwegian companies are finding their counterparts in advanced fields such as electric power engineering, telecommunications and banking. Yesterday I visited a petrol station run by Norwegian Statoil. Statoil's network of petrol service stations in the Baltics is expanding rapidly. So far there are six stations in Lithuania, in a few years time the number might reach thirty.

Today there are few barriers to trade between us. A bilateral free trade agreement has been in force since July 1993. Last December this agreement developed into a free trade agreement between the EFTA countries and the Baltic states. When we settle the remaining obstacles linked to trade in agricultural products - then the whole EFTA/Baltic agreement can be ratified and enter into force. This would mark another important step towards establishing a multilateral trade system in Europe - embracing the European Union, the EFTA countries, the Baltic states and the countries of the Central European Free Trade Area.

The rapid transition to an open market economy is no easy task. We are impressed with the dedication of your reform process and encouraged by the progress made so far. The Norwegian Action Programme for Central and Eastern Europe gives support to the introduction of market economies in the Baltic region. The programme is also a practical tool to promote cooperation between companies in Norway and the three Baltic states. It provides "seed money" to business projects which carry a lot of promise.

In developing the programme, we have put prime emphasis on concrete projects put forward by the companies themselves. The projects have to be commercially viable. They should also involve long-term cooperation and competence building through transfers of know-how or technology. Funds are not available to those who are only interested in a quick profit. Our aim is to help building long term relations. There is indeed no lack of ideas. In Lithuania, Norwegian grants have already made a contribution in areas as different as banking and pig breeding.

Norway's guarantee scheme for the CIS and the Baltics, with a ceiling of USD 280 million, covers both investment and export guarantees. Originally, these guarantees were only made available to Norwegian businesses on the condition of a governmental counter guarantee from the country of their partners. Today, however, other forms of security may be accepted as well. This has made our guarantee scheme even more favourable and competitive. In the years to come, I expect that this instrument of promoting economic activity will be utilized more by Norwegian companies doing business in Lithuania.

Norway is a significant contributor to the Baltic Investment Programme which has successfully launched investment banks in all three Baltic states.

I should also mention another initiative of great promise to Norwegian- Lithuanian business, namely the establishment of a Baltic Investment Fund for projects primarily located in Lithuania. This initiative has been launched by Balticum Invest in cooperation with the EBRD and Finnish interests.

The business delegation headed by the Norwegian Trade Council, is made up of representatives of 14 Norwegian companies, large, small and medium-sized. All these companies are already engaged in business and industrial cooperation in Lithuania. They cover a wide range of activities. You will have a chance to meet with them later today. It is my hope that this encounter will help create new contacts, new ideas and new opportunities.

It is a pleasure for me to wish all those engaged in expanding business cooperation between Norway and Lithuania the best of luck, knowing that we will succeed in developing a lasting partnership of prosperity.

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