Free trade agreements in a small, open country: The case of Norway

Abstract

Negotiating free trade agreements (FTAs) has been a high political priority for Norway. Today it has agreements with 41 countries outside the European Union (EU) / the European Free Trade Association (EFTA), resulting one the world’s most extensive FTA networks. FTAs cover about 10% of Norway’s trade – a share likely to increase in the future. These agreements eliminate tariffs on a substantial number of traded products, and have gradually become more comprehensive, covering an expanding range of non-tariff areas. Hence, they may have trade-promoting effects beyond tariff reductions as such. On the other hand, the non-tariff provisions often do not go further than what has already been dealt with in other international agreements or practised domestically, so their overall effect may be limited.

Free trade agreements in a small, open country: The case of Norway