The MAC has released its latest advice on the trade relationship between the EU and Norway, focusing on fishery and aquaculture products. Photo Norwegian Seafood Council
The Market Advisory Council (MAC) has released a comprehensive report detailing the current state of trade relations between the EU and Norway concerning fishery and aquaculture products.
Norway remains a pivotal trading partner for the EU, with the country being the EU’s sixth most significant partner in goods trade as of 2023. Over the 2021-2023 period, Norway exported an annual average of 1,303,994 tons of fishery and aquaculture products to the EU, valued at €7,856 million.
Background and Recent Agreements
The EU-Norway trade relationship is governed by several agreements, including the European Economic Area (EEA) Financial Mechanism, the Norwegian Financial Mechanism, and protocols on temporary liberalization of access to the EU market for specific fish and seafood products. These agreements aim to reduce economic and social disparities in the EEA, complementing the EU’s Cohesion Policy objectives.
Key Developments:
- EEA Financial Mechanism: The EU and EEA EFTA States, including Norway, have agreed on the EEA Financial Mechanism for 2021-2028, aimed at reducing economic disparities and strengthening trade relations.
- Market Access Negotiations: Norway sought full liberalization of market access for fishery products, but only partial agreements were reached, impacting tariffs and quotas.
- Norwegian Salmon: The rise in “production” grade salmon, which competes with EU processors, has raised concerns about market distortions and competitive disadvantages.
- Fisheries Agreements: The EU and Norway have multiple agreements covering quota setting, exchanges, and reciprocal access to waters, with ongoing negotiations to balance trade and sustainability.
In December 2023, the European Commission and the EEA EFTA States (Iceland, Liechtenstein, and Norway) reached an agreement on the EEA Financial Mechanism for 2021-2028. A parallel Norwegian Financial Mechanism was also agreed upon, aimed at promoting continuous and balanced trade and economic relations.
Market Access Negotiations
The negotiations for market access liberalization saw Norway advocating for full tariff-free access for all fishery products into the EU. However, certain “bridging quotas” provided under the Autonomous Tariff Quotas Regulation for 2021-2023 were not extended into the 2024-2026 period. This means products like frozen herring and herring in brine, which previously benefited from duty-free access, are now subject to tariffs.
As a result of the new agreements, from 2021 to 2028, the EU will allow an annual duty-free tariff quota of 2,500 tonnes of smoked salmon from Norway, significantly up from the previous 450 tonnes. This adjustment aims to balance market demands while considering the competitive dynamics between EU and Norwegian processors.
Challenges with Norwegian “Production” Grade Salmon
A notable issue is the classification and export of Norwegian farmed salmon. Norwegian law divides farmed salmon into “superior,” “ordinary,” and “production” categories. The “production” grade includes salmon with minor defects and, while its export as whole fish is prohibited, these defects are corrected in processing facilities, making the fillets safe for export and indistinguishable from higher grades.
In 2024, “production” grade salmon constituted over 35% of Norway’s farmed Atlantic salmon output, a significant increase from the historical 4-6%. This has raised concerns about unfair competition in the EU market, particularly since these fillets compete directly with locally produced “superior” and “ordinary” grade salmon fillets, but at significantly lower prices.
Recommendations for EU Policy and Trade Strategy
To address these challenges and ensure a balanced trade relationship, the MAC has put forward several recommendations for the European Commission:
- Balanced Trade and Fisheries Agreements: Ensure that trade and fisheries agreements respect sustainability standards and allow EU fishers access to Norwegian waters.
- Strategic Market Access: Utilize the value of EU market access in negotiations to secure favorable terms for EU fisheries.
- Level Playing Field: Guarantee that market access for Norwegian products is balanced to maintain fair competition.
- Comprehensive Strategy: Develop an integrated EU-Norway relationship strategy, encompassing trade, market access, and fisheries.
- Support EU Processors: Address the competitive disadvantages faced by EU processors due to increased quotas for Norwegian smoked salmon.
- Study Costs and Market Impact: Investigate the costs for EU processors to access raw materials and assess the economic impact of current trade dynamics.
- Regulate “Production” Grade Salmon: Monitor and potentially regulate the market impact of “production” grade salmon fillets entering the EU.
- Address Employment and Competitiveness: Consider the broader economic implications, including employment and industry competitiveness within the EU.
The MAC’s detailed advice highlights the importance of a balanced and strategic approach to EU-Norway trade relations, ensuring that agreements are fair, sustainable, and beneficial for all parties involved.
Source: Press Release
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. The new FV Quantus designed by Salt Ship Design will be fitted with the Brunvoll Retractable Azimuth Combi Thruster. Illustration by Salt Ship Design
Brunvoll with Yet Another Fishing Vessel Contract
Brunvoll has recently signed contract with Westcon Yards for the delivery of a wide array of products to the new fishing vessel for owner M.V. Quantus Limited and Peter & J. Johnstone Limited, based in Peterhead, UK.
Included is the Retractable Azimuth Combi Thruster, on its way to become an industry standard for fishing vessels. The vessel is designed by Salt Ship Design and will be delivered from the yard by the end of 2025.
The Brunvoll delivery for Quantus will consist of main propulsion and gear, the BruCon Propulsion and Thruster Control (PTC) system, an aft tunnel thruster, and a Retractable Azimuth Combi Thruster in the bow.
The main features of the Combi thruster are to act as tunnel thruster in upper position, and as azimuth manoeuvring and propulsion unit when lowered. The Retractable Azimuth Combi Thruster can provide value in various operations from added manoeuvring capability at port, to providing extra thrust and increased manoeuvrability in fishing operations by keeping the vessel on course in conditions which would else cause drift-off. The Combi thruster will also reduce fuel consumption by avoiding inefficient use of the rudder and main propulsion. The Retractable Azimuth Combi Thruster has reportedly been used to bring the vessel and crew safely to port in cases where other vital systems have been out of operation.
Brunvoll’s Retractable Azimuth Combi Thruster, becoming an industry standard for fishing vessels. Illustration by Brunvoll
Another reason for installing a Retractable Azimuth Combi Thruster is as a propulsion unit further away from the fishing gear during hauling or pumping, helps to avoid damage and disruption. Further, using the Retractable Azimuth Combi during pumping operation at stern can allow for completely stopping the main propeller and avoid trawl rotation in the flow out from the propeller, often called propeller wake.
The customers M.V. Quantus Limited and Peter & J. Johnstone Limited have also earlier installed Brunvoll thrusters for their fishing vessels. This time they are placing their trust in Brunvoll to provide an even broader range of products and systems for their new asset. The Quantus will be a pelagic trawler, built for low emissions, safe workdays, and high fish quality operating out of Peterhead (UK), which is one of Europe’s largest white-fish ports.