Norway opposes EU’s plan to impose protective measures on ferroalloy imports

ISTANBUL

Norway voiced strong opposition Wednesday to the EU’s plan to impose safeguard measures on ferroalloy imports, arguing that the restrictions violate the European Economic Area (EEA) Agreement and undermine the principles of the internal market.

Minister of Trade and Industry Cecilie Myrseth told state broadcaster NRK that the EU informed the Norwegian government of its intention to include Norway in the proposed protective measures.

“We disagree with the EU on this. The government believes that Norway should not be covered by the protective measures. We believe that the EEA Agreement does not allow Norway to be covered by such measures,” said Myrseth.

She noted that Oslo has been in dialogue with Brussels since the EU launched an investigation into possible safeguard actions on ferroalloys last December.

The proposal will now be reviewed by EU member states in the coming days, she added.

Ferroalloys are essential in steelmaking and other strategic industrial production.

Finance Minister Jens Stoltenberg is in Brussels for meetings with Nordic and European counterparts but said there are no signs that Norway will be exempted from the measures.

“The EU Commission believes that this is necessary, but we disagree. We believe this is contrary to the EEA Agreement and to the idea of an open internal market,” said Stoltenberg.

The proposal will be discussed Friday by EU member states in a safeguard tariff committee. “We must be prepared for this to be the final decision, but until the final decision is made, nothing is absolute,” Stoltenberg added.

He said that he and Prime Minister Jonas Gahr Støre have lobbied the EU for an exemption, but Brussels argues that under World Trade Organization (WTO) rules, countries cannot be treated differently.

Norwegian industry groups have warned that the plan could have far-reaching consequences for the country’s industrial base.

“We see the EU’s proposal for quotas for the Norwegian ferroalloy industry as a historic break with the logic of the internal market,” said Harald Solberg, CEO of Norsk Industri. “It will drive a major wedge into the strategic industrial cooperation with the EU and weaken the basis for investments in Norwegian industry.”

Norway supplies around 43% of the EU’s ferroalloy imports, making it one of the bloc’s largest suppliers. The proposed measures could affect up to 2,000 Norwegian jobs, according to industry estimates.

Elkem, one of the country’s leading ferroalloy producers, said it is closely monitoring developments.

According to a Menon Economics report, around 410,000 jobs in Norway are directly tied to exports and EEA market access.