Norway is a modern, highly developed country with a small but very strong economy. Per capita GDP is among the highest in the world, boosted by success in the oil and gas sector and other world-class industries like shipping, shipbuilding and aquaculture. The major industries are supported by a strong and growing professional services industry (finance, ICT, legal), and there are emerging opportunities in clean-tech, med-tech and biotechnology. Strong collaboration between industry and research institutions attracts international R&D activity and funding. The decline in oil prices since the summer of 2014 has led to a slowdown in the offshore and related industries and contributed to a rise in unemployment from under 4 percent to 4.4 percent (January 2017). The depreciation of the Norwegian Krone (NOK) against most major foreign currencies has led to record high exports for some industries.
Norway is a safe and easy place to do business, ranked 6 out of 190 countries in the World Bank’s Doing Business Report, and 6 out of 175 on Transparency International’s Corruption Perceptions Index. Norway is politically stable, with strong property rights protection and an effective legal system. Productivity is significantly higher than the EU average.
Norway welcomes foreign investment as a matter of policy and generally grants national treatment to foreign investors. Some restrictions exist on foreign ownership and use of natural resources and infrastructure. The government remains a major owner in the Norwegian economy and retains monopolies on a few activities, such as the retail sale of alcohol.
While not a member of the European Union (EU), as a member of the European Economic Area (EEA; including Iceland and Liechtenstein, with access to the EU single market’s movement of persons, goods, services and capital), Norway continues to liberalize its foreign investment legislation to conform more closely to EU standards and has cut red tape over the last decade to make investment easier. Foreign direct investment in Norway stood at USD 145 billion at the end of 2016 and has more than doubled over the last decade. In 2013, the Government established “Invest in Norway," Norway’s official investment promotion agency, to help attract and assist foreign investors. There are about 5,500 foreign-owned companies in Norway, and over 300 U.S. companies have a presence in the country.
Table 1
1. Openness To, and Restrictions Upon, Foreign Investment
Policies Towards Foreign Direct Investment
Norway welcomes foreign investment as a matter of policy and generally grants national treatment to foreign investors. Norwegian authorities encourage foreign investment, particularly in the key offshore petroleum sector and in less developed regions such as northern Norway. In 2013, the Government established “Invest in Norway", Norway’s official investment promotion agency, to help attract and assist foreign investors.
While not a member of the European Union, as an EEA signatory, Norway continues to liberalize its foreign investment legislation to conform more closely to EU standards. Current laws, rules, and practices follow below.
Limits on Foreign Control and Right to Private Ownership and Establishment
Norway’s investment policies vis-a-vis third countries, including the United States, will likely continue to be governed by reciprocity principles and by bilateral and international agreements. The European Economic Area (EEA) free trade accord, which came into force for Norway in 1995, requires the country to apply principles of national treatment to EU members and the other EEA members - Iceland and Liechtenstein - in certain areas where foreign investment was prohibited or restricted in the past. Norway’s investment regime is generally based on the national treatment principle, but ownership restrictions exist on some natural resources and on some activities (fishing/ maritime/ road transport). State ownership in companies can be used as a means of ensuring Norwegian ownership and domicile for these firms.
Government Monopolies
Norway has traditionally barred foreign and domestic investors alike from investing in industries monopolized by the government, including postal services, railways, and the retail sale of alcohol. In 2004, Norway slightly relaxed the restrictions, allowing foreign companies to bid on providing certain commercial postal services (e.g., air express services between countries) and railway cargo services (notably between Norway and Sweden). The government may allow foreign investment in hydropower (limited to 20 percent of equity), but rarely does so. However, Norway has fully opened the electricity distribution system to foreign participation, making it one of the more liberal power sector investment regimes in the world.
Ownership of Real Property
Foreign investors may generally own real property, though ownership of certain real assets is restricted. Companies must obtain a concession to acquire rights to own or use various kinds of real property, including forests, mines, tilled land, and waterfalls. Foreign companies need not seek concessions to rent real estate, e.g. commercial facilities or office space, provided the rental contract period does not exceed ten years. The two major laws governing concessions are the Act of Dec. 14, 1917, and the Act of May 31, 1974.
Petroleum Sector
The Petroleum Act of November 1996 (superseding the 1985 Petroleum Act) sets forth the legal basis for Norwegian authorities’ awards of petroleum exploration rights, production blocks and follow-up activity. The act covers governmental control over exploration, production, and transportation of petroleum.
Foreign oil companies report no discrimination in the award of petroleum exploration and development blocks in recent licensing rounds. Norway has implemented EU directives requiring equal treatment of EEA oil and gas companies. The Norwegian offshore concession system complies with EU directive 94/33/EU of May 30, 1994, which governs conditions for awards and hydrocarbon development. Norway’s concession process operates on a discretionary basis, with the Ministry of Petroleum and Energy awarding licenses based on which company or group of companies it views will be the best operator for a particular field, rather than purely competitive bids. A number of U.S. energy companies are present on the Norwegian Continental Shelf (NCS).
The Norwegian government has dismantled former tight controls over the gas pipeline transit network that carries gas to the European market. All gas producers and operators on the NCS) are free to negotiate gas sales contracts on an individual basis, with access to the gas export pipeline network guaranteed.
Norwegian authorities encourage the use of Norwegian goods and services in the offshore petroleum sector, but do not require it. The Norwegian share of the total supply of goods and services on the NCS has remained at approximately 50 percent over the last decade.
Manufacturing Sector
Norwegian legislation granting national treatment to foreign investors in the manufacturing sector dates from 1995. Legislation that formerly required both foreign and Norwegian investors to notify and, in some cases, file burdensome reports to the Ministry of Industry and Trade if their holdings of a company’s equity exceeded certain threshold levels, was repealed in July 2002. Foreign investors are not currently required to obtain government authorization before buying shares of Norwegian corporations.
Financial and Other Services
In 2004 Norway liberalized restrictions on acquisitions of equity in Norwegian financial institutions. Current regulations delegate responsibility for acquisitions to the Norwegian Financial Supervisory Authority and streamline the process. Financial Supervisory Authority permission is required for acquisitions of Norwegian financial institutions that exceed defined threshold levels (20, 25, 33 or 50 percent). The Authority assesses the acquisitions to ensure that prospective buyers are financially stable and that the acquisition does not unduly limit competition.
The Authority applies national treatment to foreign financial groups and institutions, but nationality restrictions still apply to banks. At least half the members of the board and half the members of the corporate assembly of a bank must be nationals and permanent residents of Norway or another EEA nation. Effective Jan. 1, 2005, there is no ceiling on foreign equity in a Norwegian financial institution as long as the Authority has granted permission for the acquisition.
The Finance Ministry has abolished remaining restrictions on the establishment of branches by foreign financial institutions, including banks, mutual funds and others. Under the liberalized regime, Norway grants branches of U.S. and other foreign financial institutions the same treatment as domestic institutions.
Media
Media ownership is regulated by the Media Ownership Act of 1997 and the Norwegian Media Authority. No individual party, domestic or foreign, may control more than 1/3 of the national newspaper, radio and/or television markets without a concession. National treatment is granted in line with Norway’s obligations under the EEA accord. The introduction and growing importance of new media forms (including those emerging from the internet and wireless industries) has raised concerns that the existing domestic legal regime (which largely focuses on printed media) is becoming outmoded.
Other Investment Policy Reviews
Norway has not undergone UNCTAD or OECD Investment Policy Reviews in the last ten years.
Business Facilitation
Altinn is a web portal for electronic dialogue between the business/industry sector, citizens and other stakeholders, and government agencies. Altinn serves as a one stop shop for establishing a company and contains the necessary forms. The business registration processes are straight-forward, complete, and open to foreign companies. Please note, however, that registration of Norwegian Registered Foreign Business Enterprises (NUF) cannot be done electronically. A guide for establishing a business is available at the following address:
https://www.altinn.no/Global/Starte%20og%20drive%20bedrift/Guider/ Starting_your_own_business.pdf
2. Bilateral Investment Agreements and Taxation Treaties
Norway has concluded investment protection agreements with numerous countries. These agreements contain provisions for repatriation of capital, dispute settlement, and standards for expropriation and nationalization by the host country.
Norway and other members of the European Free Trade Association (EFTA) - Iceland, Liechtenstein and Switzerland - have 25 joint free trade agreements covering 35 countries: Albania, Bosnia and Herzegovina, Canada, Central American States (Costa Rica and Panama), Chile, Colombia, Egypt, Gulf Cooperation Council (GCC), Hong Kong, Israel, Jordan, Lebanon, Macedonia, Mexico, Montenegro, Morocco, the Palestinian Authority, Peru, Serbia, Singapore, Southern African Customs Union, The Republic of Korea, Tunisia, Turkey, and Ukraine. The agreements cover trade in goods and services, investment protections, dispute settlement, and other issues generally found in bilateral investment accords.
Norway signed a bilateral taxation treaty with the United States in 1971. More information is available at http://www.irs.gov/Businesses/International-Businesses/Norway-Tax-Treaty-Documents.
3. Legal Regime
Transparency of the Regulatory System
The transparency of Norway’s regulatory system is generally on par with that of the EU. Norway is obliged to adopt EU directives under the terms of the EEA accord (in the areas of social policy, consumer protection, environment, company law, and statistics).
All draft bills are made available for comment through a public consultation process. The Norwegian parliament, the Storting, exercises legislative power in Norway and must approve all formal laws (acts, directives and regulations). Draft bills are available at https://www.regjeringen.no/en/find-document/consultations/id1763/
Norwegian laws and regulations are available at https://lovdata.no/info/information_in_english
International Regulatory Considerations
Norway is a member of the EEA and as such implements applicable EU directives under the terms of the agreement.
Norway is a member of the WTO and notifies draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT).
Legal System and Judicial Independence
The Norwegian legal system is similar to that of other Nordic countries, but does not consist of a single comprehensive civil code. Norwegian law is based on the principle of freedom of contract, subject only to limited restrictions. Contracts, whether oral or written, are generally binding on the parties.
Competition and Anti-Trust Laws
Current legislation governing competition went into effect in 2004 and is enforced by the Norwegian Competition Authority (NCA). Under the authority of the Ministry of Trade, Industry and Fisheries the NCA is authorized to conduct non-criminal proceedings and impose fines, or “infringement fees," for anti-competitive behavior. The size of the fees may vary according to a number of factors, including company turnover and severity of the offense. The 2004 legislation also empowers the NCA to halt mergers or acquisitions that threaten to significantly weaken competition. Companies planning such transactions are generally obliged by law to report their plans to the NCA, which may conduct a review. However, if the combined annual turnover in Norway does not exceed NOK 1 billion (USD 114 million) or the annual turnover of one of the companies NOK 100 million (USD 11 million), notification is not required.
Public Procurements
Pursuant to its obligations under the EEA, Norway implemented EU legislation on public procurements on Jan. 1, 1994. Norway is also a signatory to the WTO Government Procurement Agreement (GPA). The EEA/EU legislation and WTO agreement oblige Norway to follow internationally recognized, transparent procedures for public procurements above certain threshold values.
All public procurement contracts exceeding certain threshold values must be published in the Official Journal of the European Union and in the EU’s Tenders Electronic Daily (TED) databank. Norway instituted an electronic notice database more than a decade ago and currently transmits all tender notices electronically through this database to the TED system.
The rules apply to procurement by the central government, regional or local authorities, bodies governed by public law, or associations formed by one or more such authorities or bodies governed by public law. In addition, special rules apply to the procurement by certain entities in the “utilities" sectors of water, energy, transport, and telecommunications.
Public agencies must publish general annual plans for purchases of goods and services, as well as general information on any major building and construction projects planned. No later than two months after a contract has been awarded, a notice must be published stating which company won the contract. All notices must be published in an EU language.
Discriminatory technical specifications may not be used to tailor contracts for a local or national supplier. Any technical standards applied in the procurement process must be national standards that are harmonized with European standards. If no such standards exist, other international or national standards may be applied. All specifications that are to be used in evaluating tenders must be included in the notice or in the invitation to tender.
In general, public procurements are non-discriminatory and based on open, competitive bidding. There are exceptions, however, notably in defense procurements where national security concerns may be taken into account.
The Complaints Board, an independent review body, offers suppliers an inexpensive complaint process for bid challenges. The board can issue “non-binding opinions" and review the legality of the procurement in question. More serious disputes may be taken before the European Surveillance Authority (ESA), or the courts, but the decision making process can be lengthy.
Expropriation and Compensation
There have been no cases of questionable expropriation in recent memory. Government “takings" of property are generally limited to non-discriminatory land and property condemnation for public purposes (road construction, etc.). The Embassy is not aware of any cases in which compensation has not been prompt, adequate, and effective.
Dispute Settlement
ICSID Convention and New York Convention
Norway has ratified principal international agreements governing arbitration and settlement of investment disputes, including the 1958 New York Convention and the Washington Convention (ICSID).
Investor-State Dispute Settlement
No major investment disputes have occurred in recent years.
International Commercial Arbitration and Foreign Courts
Norway’s legal system provides effective means for enforcing property and contractual rights
Bankruptcy Regulations
Norway has strong bankruptcy laws and is ranked 6 out of 189 for ease of “resolving insolvency" on the World Bank’s 2016 Doing Business report. According to the World Bank, the average duration for bankruptcy proceedings in Norway is half that of the OECD, at just under a year.
4. Industrial Policies
Investment Incentives
Norway offers no significant investment incentives.
Foreign Trade Zones/Free Ports/Trade Facilitation
Norway has no foreign trade zones and does not contemplate establishing any.
Performance and Data Localization Requirements
Norway does not impose performance requirements on foreign investors, nor offer significant general tax incentives for either domestic or foreign investors. There is an exception for investments in sparsely settled northern Norway where reduced payroll taxes and other incentives apply. There are no free-trade zones, although taxes are minimal on Svalbard, a remote Arctic archipelago, which is subject to special treaty provisions. A state industry and regional development fund provides support (e.g., investment grants and financial assistance) for industrial development in areas with special employment difficulties or with low levels of economic activity.
Norway does not require “forced localization" nor impose requirements on data storage.
5. Protection of Property Rights
Real Property
Norway recognizes secured interests in property, both movable and real. The system for recording interests in property is recognized and reliable. Norway maintains an open and effective legal and judicial system that protects and facilitates acquisition and disposition of rights in property, including land, buildings, and mortgages.
Intellectual Property Rights
Norway adheres to key international agreements for the protection of intellectual property rights (IP) (e.g., the Paris Union Convention for the Protection of Industrial Property, the Berne Copyright Convention, the Universal Copyright Convention of 1952, and the Rome Convention). It has notified its main IP laws to the World Trade Organization. Norway’s IP statutes cover the major areas referred to in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
The chief domestic statutes governing IPR include: the Patents Act of Dec. 15, 1967, as amended; the Designs Act of March 14, 2003; the Copyrights Act of May 12, 1961, as amended; the Layout-design Act of June 15, 1990, as amended; the Marketing Act of January 9, 2009; and the Trademarks Act of March 26, 2010. The above legislation also protects trade secrets and industrial designs, including semiconductor chip layout design. As an EEA member, Norway adopted legislation intended to implement the 2001 EU Copyright Directive, though subsequent court cases exposed shortcomings in the legislation (see below).
Patents
The patent office (Patenstyret) grants patents for a period of 20 years (Acts of June 8, 1979, and May 4, 1985). U.S. industry has expressed concerns that Norway’s regulatory framework for process patents filed prior to 1992 denies adequate patent protection for a number of pharmaceutical products. Although Norway introduced product patents for pharmaceuticals in 1992, the old system has left a difficult legacy for pharmaceutical companies, as competitors claiming to use non-patented processes entered the market. Several U.S. pharmaceutical companies filed successful patent infringement lawsuits in Norwegian courts to fend off these new entrants, but others lost their court cases and were later forced to restructure their Norwegian operations with loss of employment. Norway was placed on the Special 301 Watch List in 2008 due to concerns about pharmaceutical patent protection but has not been listed since 2013.
Copyright
Internet piracy in Norway is facilitated by high broadband internet penetration, which makes peer-to-peer downloads of music and video easy and common. Groups that release early copies of new motion pictures on the internet are active in the Norwegian market, and Norway has experienced some “camcording incidents," where motion pictures are illegally recorded in cinemas. Private organizations like the Motion Picture Association are attempting to raise public awareness of internet and video piracy, for example by running anti-pirating advertisements in movie theaters.
Norway enacted legislation based on the EU’s 2001 Copyright Directive which combats internet piracy in June 2005, but subsequent court cases showed that the law did not give sufficient grounds for enforcement. The GON started a process of revision in 2011, and the amended Copyright Act entered into force in July 2013. The amended Act brings Norwegian copyright protection up to date by clarifying the process for gaining access to infringers’ identities and introducing a site-blocking mechanism. Positive developments on the enforcement side are complemented by the growing popularity of legal streaming alternatives like Netflix and HBO.
Counterfeit and Pirated Goods
Norway does not expressly ban imports or exports of counterfeit or pirated goods for private use or consumption. However, import or export for resale or other commercial purpose is controlled by Norwegian Customs and rights-holders are notified. Customs may seize and hold suspected counterfeit goods for up to five working days, during which time rights-holders may decide whether to proceed with an injunction or other settlement. If the rights-holder does not pursue the case or respond to the notice, the goods are released to the importer (unless considered harmful). By comparison, customs officials in the EU have wider powers to seize, hold, and destroy counterfeit shipments. In 2010, Norwegian Customs established an intellectual property rights (IPR) office to coordinate training and increase awareness. In 2015, the GON launched a new website and an awareness campaign titled “Choose the Real Deal" (velgekte.no).
Enforcement
The Norwegian government does not consider itself obligated, under the EEA Agreement, to implement the European Union Enforcement Directive. Rights holders report that law enforcement authorities have begun to investigate major copyright infringement cases, with the result that several internet sites facilitating infringement were closed down. However, rights holders contend that the authorities still do not give adequate priority to copyright and internet piracy cases.
Resources for Rights Holders
For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/.
Norwegian Industrial Property Office: http://www.patentstyret.no/en/
A list of local lawyers is available at https://no.usembassy.gov/u-s-citizen-services/attorneys.
6. Financial Sector
Capital Markets and Portfolio Investment
Norway has a highly computerized banking system that provides a full range of banking services, including internet banking. There are no significant impediments to the free market-determined flow of financial resources. Foreign banks have been permitted to establish branches in Norway since 1996.
Foreign and domestic investors have access to a wide variety of credit instruments. The financial regulatory system is transparent and consistent with international norms. The Oslo Stock Exchange facilitates portfolio investment and securities transactions in general.
Money and Banking System
Norwegian banks are generally considered to be on a sound financial footing, and the ten largest banks hold around USD 600 billion in assets. Conservative asset/liquidity requirements limited the exposure of banks to the global financial crisis in 2008/9.
Foreign Exchange and Remittances
Dividends, profits, interest on loans, debentures, mortgages, and repatriation of invested capital are freely and fully remissible, subject to Central Bank reporting requirements. Ordinary payments from Norway to foreign entities can normally be made without formalities through commercial banks. Norway is a member of the Financial Action Task Force.
Sovereign Wealth Funds
Norway’s sovereign wealth fund, the Government Pension Fund Global (GPFG), was established in 1990 and was valued at NOK 7,510 billion (USD 886 billion) at year-end 2016. Petroleum revenues are invested in global stocks and bonds, and the current portfolio includes close to 9000 companies and approximately 1.3 percent of global stocks. The fund is invested globally across three asset classes. The management mandate requires the fund to be invested widely outside Norway. The fund aims to be invested in most markets, countries and currencies to achieve broad exposure to global economic growth. About 1/3 of the fund’s investments are in the U.S., which is its single largest market. The fund has tried to play an active role in its investments and aims at voting in almost all general shareholder meetings.
In 2004, Norway adopted ethical guidelines for GPFG investments, which ban investment in companies engaged in various forms of weapons production, environmental degradation, tobacco production, human rights violations, and what it terms “other particularly serious violations of fundamental ethical norms." The fund currently has 69 companies on its exclusion list, 24 of which are U.S. companies. The ethical guidelines also highlight three focus areas in term of sustainability, children’s rights, climate change, and water management.
The fund adheres to the Santiago Principles and is a member of the IMF-hosted International Working Group on Sovereign Wealth Funds.
7. State-Owned Enterprises
The government continues to play a strong role in the Norwegian economy through its ownership or control of many of the country’s leading commercial firms. The public sector accounts for nearly 60 percent of GDP. The Norwegian government is the largest owner in Norway, with ownership stakes in a range of key sectors (e.g., energy, transportation, finance, and communications). About 70 State Owned Enterprises (SOEs) are managed directly by the relevant government ministries, and approximately 35 percent of the stock exchange’s capitalization is in government hands. State ownership in companies can be used as a means of ensuring Norwegian ownership and domicile for these firms.
Norway is party to the Government Procurement Agreement (GPA) within the framework of the World Trade Organization (WTO) and a signatory to all relevant annexes. SOEs are thus covered under the agreement.
Norwegian governments have sustained stable levels of strong, transparent, and predictable government ownership. The previous center-left government increased its stake in companies like Statoil ASA, Kongsberg Gruppen AS, and Yara International ASA, while selling off other holdings. The current center-right government is in a process of reducing ownership stakes.
The Government of Norway publishes the annual state ownership report, available in English here: https://www.regjeringen.no/en/topics/business-and-industry/state-ownership/statens-eierberetning-2013/the-state-ownership-report/id2395364/
Privatization Program
Norway has no current plans to privatize any State-owned enterprises.
8. Responsible Business Conduct
Corporate Social Responsibility (CSR) is very much part of Norwegian corporate and political consciousness. Significant attention has been given to ethical and sustainable business practices over the last several years; the GON has issued a series of white papers, most recently in 2009, on the responsibility of Norwegian businesses in the global economy. In 2006 and 2007, the GON also set down guidelines for ethical and responsible conduct in government-owned enterprises, and incorporated climate policy, procurement policy, and development policy as parts of the GON’s broader CSR vision.
As an OECD member, Norway adheres to the OECD Guidelines for Multinational Enterprises; information on its National Contact Point is at this link: http://mneguidelines.oecd.org/ncps/norway.htm
The Norwegian Accounting Act requires companies listed on the Oslo Stock Exchange to provide a report on their policies and practices for corporate governance. The Norwegian Corporate Governance Board, composed of nine independent organizations, issues and updates the Norwegian Code of Practice for the above mentioned companies. In the mining sector, Norway encourages adherence to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas and participates in the Extractive Industries Transparency Initiative (EITI).
9. Corruption
Business is generally conducted “above the table" in Norway, and Norway ranks 5 out of 168 countries on Transparency International’s Corruption Perceptions Index for 2015. Corrupt activity by Norwegian or foreign officials is a criminal offense under Norway’s Penal Code. Norway’s anti-corruption laws cover illicit activities overseas, subjecting Norwegian nationals/companies who bribe officials in foreign countries to criminal penalties in Norwegian courts. In 2008, the Ministry of Foreign Affairs launched an anti-corruption initiative, focused on limiting corruption in international development efforts.
Norway is a member of the Council of Europe’s anti-corruption watchdog Group of States against Corruption (GRECO) and ratified the Criminal Law Convention on Corruption in 2004, without any reservations.
UN Anticorruption Convention, OECD Convention on Combatting Bribery
Norway has ratified the UN Anticorruption Convention (2006) and is a signatory of the OECD Convention on Combating Bribery.
Resources to Report Corruption
The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM)
Address: Postboks 8193 Dep, 0034 Oslo
Telephone: +47 23 29 10 00
Email: post.okokrim@politiet.no
10. Political and Security Environment
Norway is a vibrant, stable democracy. Violent political protests or incidents are extremely rare, as are politically motivated attacks on foreign commercial projects or property. However, on July 22, 2011, a Norwegian individual motivated by extreme anti-Islam ideology carried out twin attacks on Oslo’s government district and on the Labor Party’s youth summer camp in Utoeya, killing 77 people. The individual, now in prison, operated alone and this incident is not generally considered an indicator of increased political violence in the future.
11. Labor Policies and Practices
Skilled and semi-skilled labor is usually available in Norway, though strong economic growth in recent years has caused shortages in certain professions (e.g., nurses) and in unskilled labor (e.g., construction workers, processing industry). The labor force as of year-end 2016 totaled about 2.63 million persons, representing 66.8 percent of the working-age population. Slowing economic activity in the wake of low oil prices led unemployment to rise from under 4 percent in 2012 to 4.8 percent in 2015; it had stabilized at 4.4 percent at year-end 2016. The rise in unemployment has disproportionately affected the counties of the west coast, traditionally more dependent on the oil and gas industry, as well as engineers.
Union membership is in excess of 1.5 million persons, over 50 percent of the labor force. The unions are independent of the government but some, such as the largest (LO), have close and historic ties with the Labor Party. Norway has a highly centralized and constructive system of collective bargaining. The government may impose mandatory wage mediation should strikes threaten key sectors of the economy, particularly the oil and gas and transportation sectors. The government stepped in during 2006 to prevent a threatened strike in the banking sector. Mandatory wage mediation was used in 2010 to end strikes in the health sector and in the offshore sector in 2012.
Employee benefits are generous, e.g., one year’s paid maternity leave (financed chiefly by the government), and unemployment benefits for up to 104 weeks. There are special provisions for layoffs linked to lower activity for the employer.
The average number of hours worked per week in one’s primary job, 33.9 in 2011, is the third lowest in the OECD, after the Netherlands and Denmark. Productivity, however, is high - significantly higher than the EU average. Sickness and absenteeism rates have been between 6-8 percent over the last decade, and stood at 5.4 percent at the end of 2016. Relatively high disability rates, especially among young people, are a concern.
Norwegian blue-collar hourly earnings are comparatively high. High wages encourage the use of relatively capital-intensive technologies in Norwegian industry. Top-level executives and highly skilled engineers, on the other hand, are generally paid considerably less than their U.S. counterparts, which, when combined with relatively high wages at the bottom of the wage scale, contributes to Norway’s very high level of income equality relative to other OECD countries.
Obtaining work permits for foreign labor, particularly for semi-skilled workers, can be cumbersome. Norway has witnessed a strong influx of foreign workers as demand for labor has outstripped supply in some sectors, e.g., construction.
12. OPIC and Other Investment Insurance Programs
OPIC does not currently operate in Norway. However, Norway is a member of the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA).
The Norwegian Guarantee Institute for Export Credits (GIEK) is the central governmental agency responsible for issuing export credits and investment guarantees. GIEK operates under the authority of the Norwegian Ministry of Trade, Industry and Fisheries, which contains a section that oversees export and investment guarantees and domestic industry financing. GIEK’s primary function is to promote export of Norwegian goods and services, and Norwegian investment abroad. It underwrites exports to over 150 countries of all types of goods and services. The guarantees may encompass a single transaction or a series of transactions and cover not only commercial risk, i.e., bankruptcy on the part of the debtor or non-payment for other reasons, but also political risk, i.e., war, expropriation and actions by public authorities that prevent payment.
GIEK offers long term guarantees for export of capital goods to most countries, including emerging markets. The guarantees are issued on behalf of the Norwegian government and can be used as security vis-à-vis banks and other financial institutions to facilitate funding. The Director General and a Board of seven directors are responsible for day-to-day operations. GIEK guarantees the down payment on a loan raised by the buyer for financing deliveries from a Norwegian exporter. GIEK is a member of the Berne Union.
13. Foreign Direct Investment and Foreign Portfolio Investment Statistics
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
* Statistic Norway )
Table 3: Sources and Destination of FDI
Table 4: Sources of Portfolio Investment
14. Contact for More Information
Per Sogge
Economic Specialist
U.S. Embassy Oslo, Henrik Ibsens gate 48, 0244 Oslo, Norway
+47 21 30 86 65
soggepv@state.gov
Tags
Bureau of Economic and Business Affairs Bureau of European and Eurasian Affairs Norway
Source: U.S Department of State, Bureau of European and Eurasian Affairs
