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THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
Norway
Norway is a net importer of agricultural products, but a net exporter of fishery products. In 1996, Norway exported agricultural products valued at $894 million, but exported more than $3.3 billion of fishery products. Norway provides a variety of infrastructural support tools to its fishery producers, including transportation support within Norway, assistance to modernize fisheries, and support to purchase fishing vessels. Export market promotion for fish and seafood is carried out by the Norwegian Seafood Export Council, a semi-private producer board, which is funded by levies on exports of fishery products. Export promotion expenditures are estimated at $15 million for 1996 but are expected to increase as described below. Targeted promotional markets include Denmark, Japan, China and other EU countries.
The Ministry of Fisheries established the Norwegian Seafood Export Council in 1991. The Council’s board consists of seven representatives of exporting firms, producers, fish farmers, and the Norwegian Ministry of Fisheries. The main objective of the Council is generic promotion in domestic and export markets (mainly export markets). Now part of the Ministry of Foreign Affairs, the Council also has the authority to approve Norwegian exporters and see that they follow the rules and regulations. While focusing on generic promotion, the Council’s activities tie with brand promotions conducted by private firms.
Funding for the Norwegian Seafood Export Council comes from export registration fees and levies on exporters by the Norwegian Customs Authority. In 1996, export registration fees were $2,362 per exporter. Assessments on exports were: 0.3 percent of the f.o.b. value of exported fish and fish products with exceptions for farmed salmon and trout (0.75 percent of the f.o.b. value), prepared and preserved fish exported under tariff number 16.04 (0.2 percent of the f.o.b value), and prepared and preserved crustaceans (0.2 percent of the f.o.b. value). This gave the Council a budget of $15 million in 1996. This will increase substantially in future years because of a recent agreement to limit Norwegian salmon exports to the EU. In June 1997 Norway agreed to increase its export tax to 3 percent for salmon sold to the EU. In addition, quantitative limits and a minimum price were established.
In 1996, the Norwegian Seafood Export Council continued its use of a "Norwegian Seafood Team" in the United States consisting of 11 Norwegian and American chefs. This team acted as instructors and speakers in seminars all over the United States titled, "The Art of Seafood Workshop". Some of these events were coordinated with the American Culinary Federation (ACF). In Europe and Asia the Council participates in trade shows such as SIAL, ANUGA, Food and Hotel China and Seoul Food. In Europe it uses television advertising and has recently started to target canteen services to reach workers at lunch time. In Asia the Council focuses its promotions on hotels, restaurants and catering services.
Norway also exports a large volume of cheese and lesser amounts of other products at relatively low prices. According to its notification to the WTO, Norway’s expenditures for direct export subsidies on sales of cheese, meats, butter and other agricultural products were estimated at $72.2 million in 1996, 80 percent of which was for cheese. Its largest markets for cheese are Japan and the United States, with smaller but significant markets in Australia, Germany and Canada. About 85 percent of these exports were subsidized.
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