Question

What are Norway's trade and exchange rate initiatives taken to strengthen the nation's international trade and finance position?

Answer 1

More than 70 per cent of Norwegian export comes from ocean industries. Norway is one of the world’s largest producers of oil and gas and the world’s second largest exporter of fish and seafood.

The Government’s ambition is that Norway shall strengthen its position as a trading nation through the following goals:

- Securing market access for existing and new export markets.
- Attracting foreign investments.
- Positio ing Norway as a leading research and development hub.
- Increasing exports from existing export industries and fecilitating new ones.
- It participates in multilateral and plurilateral negotiations to improve exports, like the EGA (Environmental goods agreement) and TISA (agreement on Trade in Services) negotiations.
- Trade policy collaborations with the European Union and Britain after Brexit.
- In 2017 the government presented its ocean strategy to promote ocean industries.
- Norway will continue to be a leading exporter of oil and natural gas ( as only one third of its gas reserves have been exploited so far)
- Increase export of Norwegian agricultural products as they have competitive advantage in the global market.
- The government will secure a competitive official export credit programme.

Foreign exchange rate initaitives:

(Norway has floating exchange rate  which reflects the supply and demand in the international foreign exchange market.)

Norway's new trade minister recently said a weak exchange rate is helpful. A weak krone has been extremely important for Norwegian mainland export businesses these past years, and in the wake of the oil-price drop.
Norway’s economy is growing faster now that oil prices are recovering. That’s making the krone more appealing to investors. But the government is making clear it’s not keen on the appreciation that comes with that demand.

The Norwegian krone has rallied 4 percent since hovering near a record low against the euro in December. For the past two years, Norway’s central bank has targeted the currency to support exports after a plunge in oil prices brought the country’s biggest industry to its knees.