Trade in agricultural products is excluded from the scope of the European Economic Area (EAA) Agreement which makes Norway a part of the EU's internal market. However, Article 19 of the Agreement obliges signatories to "undertake to continue their efforts with a view to achieving progressive liberalization of agricultural trade". A bilateral agreement was drawn up in 2012, which established additional trade preferences in agricultural products.
However, from January 2013, Norway changed its tariff structure, from specific tariffs to ad valorem tariffs, on certain types of cheese, lamb and beef, which has led to significant increases in tariffs for these products being exported from the EU to Norway. While Norway can legally do this under its WTO obligations, nevertheless, the measures are regarded as contrary to Article 19 of the EEA Agreement, which foresees progressive trade liberalisation in agriculture.
Officials from my Department met with Norwegian officials on 10 December, 2012 and raised concerns at the decision by Norway to introduce these higher tariffs and specifically the impact these higher tariffs could have on potential exports of Irish beef to Norway, which was being explored by the beef industry. My officials also highlighted the fact that no prior notice had been given to the Commission of the proposed changes to the tariff structure.
The Commission has taken all available measures to counter the tariff increases. Letters were sent by the Director-General of DG AGRI and Commissioner Ciolo to oppose the new tariffs. Consultations with Norway took place at political and technical level. The issue was raised at the EAA Joint Committee. Nevertheless, Norway was not willing to reconsider the measures taken. The Commission recognises that this action is allowed within Norway’s WTO commitments but it is considering what can be done bilaterally and has indicated that it will also take this into account in other areas of its relations with Norway. Last week, a resolution was adopted by MEPs demanding that Norway withdraw what it regards as protectionist measures, and warned that the EU will consider "further action" if Norway does not comply.
In terms of trade with Norway, Ireland’s exports of food and beverages have increased from €13.13 million in 2010, to €16.644 million in 2011 and to €17.557 million in 2012. We will have to await the full year figures for 2013 to see if this measure has impacted on Ireland’s exports of beef and cheese. Exports of beverages, at roughly €10 million over the past three years have remained almost constant in these years. Exports of dairy products have varied from €1.08 million in 2010, to €3.4 million in 2011 and €2.9 million in 2012. Ireland has very limited cheese exports to Norway which were valued at €85,000 in 2011 and €32,000 in 2012. Exports of casein increased slightly from €1.08 million in 2011 to €1.15m in 2012 while exports of butter decreased from €2.2 million to €1.65 million. Exports of cereals have grown from €55,000 in 2010 to €1.54 million in 2012, while pigmeat exports increased from €99,000 in 2011 to €211,000 in 2012. Exports of beef also grew from a zero base in 2011 to €200,000 in 2012.
For the first four months of this year, there is a decrease in Irish exports from €5.88 million to €4.08 million, with reductions recorded in relation to cereals exports from €1.23 million to €19,000 and also decreases in exports of dairy products from €918,000 to €303,000. No exports of beef are recorded in the first four months of 2012 and none are recorded in the first four months of 2013. My Department will continue to monitor this situation and will support the Commission in its actions to address the measures taken by Norway.
