Columbia International Affairs Online: Working Papers

CIAO DATE: 03/2012

A case study of Norway's beef trade from developing countries

Karl M. Rich, Arne Melchior, Brian D. Perry

February 2012

Norwegian Institute of International Affairs

Abstract

Norway has traditionally operated a rather closed, managed market for beef importsnder WTO-auspices, Norway operates a tariff-rate quota (TRQ) for beef that allows the entry of a small amount of product at a relatively low tariff rate, with higher rates of duty imposed on imports over the quota. There are several different TRQs of relevance to boneless beef. The main quota is the WTO quota, which allows for the annual import of 1,084 tons of frozen beef at an in-quota duty rate of NOK 33,60/kg for boneless cuts. Countries with ordinary GSP access receive a 30 percent discount on this duty, so that the in-quota GSP tariff is NOK 23,52/kg. The WTO quota is administered once per year by an auction system – table 6 provides a list of the prices and volumes for the 2011 WTO quota. For imports outside the WTO quota, the duty is 119,01 NOK/kg, with GSP countries paying 10 percent less at NOK 107,11/kg. The WTO quota is not the only means by which imports are regulated into Norway. Norway also maintains a quota under its SACU freetrade agreement, in which 500 tons of imports from Botswana, Namibia, and Swaziland are allowed duty-free, with over-quota imports assessed a slightly lower duty rate vis-à-vis the MFN rate (NOK 101,16/kg). This quota is also administered by an annual auction.