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Local Norway
07-05-2025
- Business
- Local Norway
Norwegian foreign minister says EU more important than ever for Norway
The minister's comments were part of a statement he gave to Norway's parliament on the country's ties to Europe, which he used to call for increased cooperation with the EU. 'A new multipolar world order — not to say disorder — is taking shape. This means that our cooperation and community with the EU, and the values we share, are becoming even more important than before,' he said. 'Security, economy and fundamental values are the foremost pillars of the European community of which Norway is a part. The Labour Party government will work to strengthen this community along all three pillars,' he added. While not an EU member, Norway is tied to the bloc through the European Economic Area (EEA) Agreement. The EEA covers all EU countries plus non-members Iceland, Liechtenstein, and Norway. READ ALSO: Why Norway isn't a member of the European Union Eurosceptics in Norway argue that the EEA Agreement means Norway doesn't have a say in EU directives, which Norway must implement and follow. Earlier this year, the Centre Party left the current minority government due to a row over EU energy directives, leaving the Labour Party alone in government until general elections in September. Eide also warned parties and politicians who have told voters they would try to pull Norway out of the EEA or negotiate the existing agreement in order to gain votes that this wasn't a realistic prospect. Advertisement 'I hear those who advocate something less binding than the agreement we have today. It is fine to want something less binding than the EEA. However, I believe that critics of the agreement owe it to voters to make them aware that 'something less than the EEA' also means fewer opportunities for Norwegian companies, workers and consumers in Europe,' he said. 'Let me be clear. Talking about a renegotiation of the EEA Agreement, as some do, is tempting with a solution that does not exist,' he added.
Local Norway
02-04-2025
- Business
- Local Norway
'A step in the wrong direction': Norway's finance minister issues tariff warning
US President Donald Trump is expected to announce the tariffs, which will take effect immediately at around 10pm Norwegian time on Wednesday. 'We must be prepared for the fact that today will be the most massive tariff increase the world has seen in many decades,' Minister of Finance Jens Stoltenberg said regarding the tariffs to public broadcaster NRK on Wednesday. Stoltenberg said that Norway was one of the countries that benefitted the most from free trade between countries. 'If there is now a tariff war and tariff walls, it will affect Norway more than many other countries,' Stoltenberg said. The Norwegian Confederation of Enterprise (NHO), the country's largest employer organisation, said it is worried about the prospect of a flat tariff that would affect all countries being introduced. 'We are a bit on edge about what is to come,' Ole Erik Almlid, CEO of the NHO, told NRK. 'One can imagine they will impose a flat tariff on all countries. Then Norway will be hit hard, and Norwegian businesses will be hit very hard,' he added. Tariffs are taxes and charges on imported products. These taxes and charges make imported products more expensive for importers and consumers, and tariffs are used to protect domestic products. Advertisement For example, Norway has several tariffs in place, such as 344 percent on beef and 443 on milk, to protect Norwegian agriculture. READ ALSO: What are Norway's food tariffs, and how do they affect grocery prices? US President Donald Trump has imposed or announced tariffs against several countries in a bid to try to balance the US's trade balance with other countries. However, this has also raised the possibility of other countries, or trading blocs like the EU, imposing counter-tariffs. Norway's trade minister has previously ruled out Norway introducing a counter-tariff against the US. Some 600,000 jobs in Norway are linked to exports, which is why a protracted trade war could harm Norway. 'We have lived off exports for many years. When you have a big difference from day one to day two with you suddenly having to pay customs duties on goods going into the US, it will mean a lot to many people,' Almlid said. Trump has referred to the introduction of the tariffs as 'Liberation Day', something Stoltenberg, who built up a rapport with the US President during his term as Nato chief, disagrees with. 'I would call it a day when the world takes a step in the wrong direction,' he said. Advertisement Stoltenberg said the government had taken three measures to avoid being hit by a triple whammy of a downturn in the economy, being subject to US tariffs, and then being hit with EU counter-tariffs. These measures were sticking to the EEA Agreement, having ongoing discussions with decision-makers in the European Commission, and working to ensure the Norwegian economy remained healthy. Despite being an EEA member, Norway has worked to ensure it would not be affected by EU counter-tariffs. This is because it is not a member of the customs union that would automatically exempt it from tariffs.
Local Norway
17-03-2025
- Business
- Local Norway
Norway's trade minister says country unlikely to issue tariffs on US goods
Minister of Trade and Industry Cecilie Myrseth said introducing tariffs and counter-tariffs against the US wouldn't benefit the country. 'The government's starting point is that Norway would not benefit from escalating a trade conflict, for example, by responding with tariff increases on American goods,' she said to parliament on Monday. 'Our message to the US is that increased trade barriers are not in anyone's interest in the long run, and that the global economy will lose from a comprehensive trade conflict,' she added. She said that tariffs on Norwegian goods were possible and that the government would try to ensure Norway wasn't subject to US tariffs. Myrseth said that while trade with the US only accounted for 3 percent of goods exports from Norway and 8 percent of mainland exports, the US was an important trading partner for Norway. 'Examples of exports to the US are oil and gas, seafood, offshore technology, construction machinery, furniture and metals,' she said. 'In addition, Norwegian companies are deeply integrated into international value chains that produce for the American market. In other words, the United States represents a larger end market than direct exports would suggest,' the minister added. She described the uncertainty and unpredictability surrounding a potential large-scale trade conflict as 'serious'. Myrseth said she was also in touch with the business community regarding tariffs. The Norwegian government was in constant contact with the EU in regards to the country being subject to any counter-tariffs against non-members, she added. Advertisement While not an EU member, Norway is part of the European Economic Area. The EEA Agreement gives Norway access to the EU's single market, but not the customs union – meaning tariffs against non-members, theoretically, could apply to the Nordic country. US President Donald Trump has imposed or announced tariffs against a number of countries in a bid to try to balance the US's trade balance with other countries. Around 600,000 jobs in Norway are linked to exports, and economists have warned that a trade war could lead to higher prices, increased unemployment, and create challenges for the central bank. READ ALSO: How a trade war could affect consumers in Norway
Local Norway
12-03-2025
- Business
- Local Norway
Norway's PM says country remains in talks with the EU to avoid future tariffs
The US brought tariffs on steel and aluminum into effect on Wednesday, which drew swift retaliation from the EU. 'It is unfortunate for Norway, which has a small, open economy. All countries are best served by open world trade where everyone follows the same rules of the game,' Støre told the Norwegian newswire NTB. Støre added that he was concerned about the 600,000 Norwegian jobs linked to exports. He said Norway was in close contact with the EU to avoid being hit with any tariffs. 'We are in close contact with our partners in Europe to avoid Norway being affected by protectionist measures from the EU. The government's goal is to protect Norwegian jobs against a trade conflict. We must maintain open trade in Europe, it is in our common interest,' he said. The 25 percent US tariff on steel and aluminium would be felt in Norway, finance minister Jens Stoltenberg said. 'Norway exports most of its Norwegian steel and aluminium to Europe, but we also have some direct exports to the USA,' he told NTB. 'It is concerning that the US is choosing to start a trade war with the EU. We are concerned about the negative ripple effects this could have on the global economy. More tariffs will create turmoil in the markets and increase the costs of steel and aluminium globally,' he added. The EU announced that its retaliatory tariffs would be applied to up to 26 billion euros worth of US goods from next month. The EU tariffs would cover an eclectic range of goods, from dental floss to diamonds and bathrobes to bourbon. It was widely reported on Wednesday that more tariffs were likely to arrive from the EU. Norway won't be affected by the bloc's latest round of tariffs, and the government has previously told The Local that it is working to avoid being affected by future EU tariffs. While not an EU member, Norway is part of the European Economic Area. The EEA Agreement gives Norway access to the EU's single market, but not the customs union – meaning tariffs against non-members, theoretically, could apply to the Nordic country.
Local Norway
18-02-2025
- Business
- Local Norway
What Norway is doing to prepare for the upcoming tariff war
As a small, open economy deeply integrated into global trade, Norway is vulnerable to escalating tariff tensions between the US and the EU. Even if Norway secures a trade agreement (meaning tariff exemptions) with the EU, it cannot entirely shield itself from the broader economic ripple effects of a trade conflict between two of the world's largest economies. With fears of a full-blown tariff war growing, Norwegian policymakers are preparing measures to protect jobs, businesses, and the country's economic stability. Norway's diplomatic efforts and trade strategy The Norwegian government is actively engaged in diplomatic efforts to safeguard its trade interests, State Secretary Maria Varteressian at the Norwegian Ministry of Foreign Affairs told The Local. "The government keeps in close contact with the European Union, US authorities, and other partners on these matters. We have been prepared for the developments in US trade policy. It is too soon to tell how Norwegian businesses and exports can be impacted by the increased US tariffs," she said. For Norway, a country where exports support over 600,000 jobs, the stakes are high. "This translates into one in five jobs. An important part of the government's priorities is to assist and protect Norwegian companies and jobs and prevent our companies from being affected by a trade conflict," Varteressian explained. With almost 70 percent of Norwegian exports going to the EU, the country's economy is also highly dependent on smooth trade flows with Europe. "Europe is Norway's most important export market… This export is important throughout the country," she added. Can the EEA Agreement shield Norway? Norway's position within the European Economic Area (EEA) remains its most significant safeguard against trade disruptions. Varteressian underscored the importance of this agreement in protecting Norwegian businesses. "The EEA Agreement is the cornerstone of Norway's broad cooperation with the EU. The agreement has played a key role in the Norwegian economy, private sector, and society for over thirty years. It extends the EU Single Market to the EEA EFTA States, including Norway, which consists of 30 European countries and over 450 million inhabitants. We are in close contact with our EU partners to ensure that Norway, as an integrated part of the single market, will not be affected by any EU safeguard measures," she said. However, while the EEA Agreement provides a degree of protection, it does not fully insulate Norway from the impact of a broader trade war. If US tariffs lead to retaliatory measures from the EU, Norway could still experience economic consequences. A "triple tariff threat" on the horizon Despite assurances from the Ministry of Foreign Affairs, concerns are mounting about the potential consequences of a tariff war. Finance Minister Jens Stoltenberg has recently warned that Norway could face a "triple whammy" scenario that would significantly strain the country's economy. Speaking at the security conference in Munich in February, Stoltenberg highlighted the risk of Norway being caught between the US and the EU in a tariff battle. "Norway could be hit by a triple squeeze. First, we could be hit by tariff walls in the US, which affect companies that sell goods from Norway to the US. Then, we could be hit if the EU implements countermeasures and [Norway] comes outside of them. Then we fall between two chairs," he told the press. He also pointed to a third, broader threat, noting that "Norway could be affected by a comprehensive trade war that could affect growth in the world economy with rising prices and interest rates. This would also affect the Norwegian economy." Potential impact on Norwegian consumers Last week, Ola Honningdal Grytten, a professor at the Norwegian School of Economics (NHH), told The Local that while Norwegian exports to the US are relatively small, the broader effects of a trade war could be severe. He explained that an escalation in tariffs could drive up inflation, which in turn could lead to higher interest rates, making borrowing more expensive and slowing economic growth. "Of course, one might experience tariffs on exported products too and higher prices on imported goods," Grytten said, cautioning that Norway could face indirect consequences even if it is not directly targeted. "But the main challenge will be inflation, and thereof high interest rates, less innovation, less structural changes, less productivity and economic growth, and less demand for Norwegian products in the world markets."
