Last Wednesday, US President Donald Trump announced the introduction of 25% tariffs on goods from the European Union. 

In response, the EU is expected to take countermeasures. However, these actions could have a huge impact on Norway. 

The EU countries represent Norway’s largest export market. Initially, the Norwegian government assumed that Norway should not be subjected to any protective measures from the EU, as it is part of the European Economic Area (EEA)/EFTA Agreement. However, upon a closer look at the law, it appears that, under World Trade Organization (WTO) rules, this does not automatically guarantee protection. 

Although Norway is a party to the EEA Agreement, which provides a better position for negotiations, it remains outside the EU customs union. This means that Norway could still be affected by any measures considered by the EU. When the EU adopts protective measures, they generally apply to all third countries, and Norway, as a non-EU member state, is classified as a third country.

Norway might avoid being affected by the EU’s protective measures if it can successfully argue for a tariff quota system based on previous trade volumes, and negotiates specific exemptions with the EU as an EEA member.

Article 112 of the EEA Agreement states that protective measures should cause the least possible disruption to trade within the EEA. This provision could offer Norway a chance to evade EU-imposed tariffs.

We trust that the relevant decision-makers will ensure that the cooperation between Norway and the EU remains as favorable as possible for the benefit of both economies.