Trade battles bring chill to Nordic links

Date: 08/02/1996

TRADITIONALLY cordial relations between Norway and its Nordic EU neighbours remain distinctly frosty as the two sides struggle to patch up their differences over fisheries and farm policies.

Senior agricultural officials will meet tomorrow (9 February) to search for a way out of the diplomatic impasse caused by Norway's decision to raise import duties on EU processed food products, particularly from its former ally Sweden.

But before talks can make genuine progress, negotiators must first agree on what has actually happened - while the European Commission puts the average tariff increase at 56&percent;, Norway puts the figure at just 7&percent;.

Fisheries officials have confirmed that Oslo has dropped its insistence that EU vessels announce their arrival in Norwegian waters at least 24 hours in advance.

But problems intensified last week when two Danish vessels were arrested after passing within 40 miles of the Norwegian coast - apparently in contravention of new Norwegian regulations of which the EU was unaware.

The incident was defused through bilateral contacts between the Norwegian and Danish fisheries ministers.

But a more far-reaching and controversial dispute centred on who has jurisdiction over the valuable Atlantic-Scando herring stock will be the subject of extensive discussions between the Commission and Norway later this month.