For example, Norway is currently negotiating a free trade agreement with China`s economic superpower. In addition, Norway has a wide range of free trade agreements than before. “Twenty years ago, our trade agreements were generally about trade in goods.” “And,” she notes, “with the UK – one of our main trading partners – withdrawing from the EU, we will probably have to negotiate a separate free trade agreement with them.” In 2019, U.S. trade in goods and services with Norway was $15.9 billion. Exports totaled $6.9 billion; Imports amounted to $9.0 billion. The U.S. trade in goods and services with Norway was $2.2 billion in 2019. On the other hand, discontent with Norway`s main trade agreements is growing. Discussions on a comprehensive and sustainable free trade agreement are still ongoing, the ministry added. In a special edition of The World Economy, senior Research Fellow Hege Medin (NUPI) examines Norway`s free trade agreements outside the EEA and EFTA. Such agreements between two countries or groups of smaller countries are often referred to as bilateral trade agreements. In short, Norway today is a small, rich and open country with a liberal regime for international trade. Norway currently has 29 bilateral free trade agreements with 41 countries.
Trade in this context accounts for 10% of Norway`s international trade. Norway`s economic and trade relations with the EU are mainly governed by the European Economic Area (EEA) agreement. Norway has a very open economy, with trade accounting for 71% of GDP (2019 – World Bank). Traditionally, the country exports energy-intensive products and imports high-tech products. The country is one of the world`s 20 largest oil exporters and the world`s second largest exporter of natural gas and seafood. In total, Norway is one of the 25 largest exporters (excluding intra-EU trade). Industrial products (ships, oil rigs, etc.) account for almost 10% of total exports. Norway imports mainly manufactured goods (machines, transporters, information technology), which account for 40% of all imports. The country`s main trading partners are the Member States of the European Union. The United Kingdom was the main target for Norwegian exports (21.6%), followed by Germany (16%), the Netherlands (10.6%), France (6.7%). Sweden (6.7%). Sweden was the largest supplier of goods and services to Norway (12.1%), followed by Germany (10.9%), China (10%), the United States (7.7%).
Denmark (5.5%). Norway`s trade surplus is considerable. However, the trade surplus is closely related to world oil and gas prices and was significantly lower between 2015 and 2017 compared to previous years. After hitting a 17-year low in 2016 at $12.92 billion, Norway`s trade surplus increased sharply in 2018 to $33.56 billion, with merchandise exports reaching nearly $121.8 billion, well above Goords` imports ($87 billion). According to Statistics Norway data, the trade surplus declined again in 2019 and decreased by 48.3% per year to NOK 148.3 billion ($16.07 billion).