I. COMMERCIAL OVERVIEW

                       EXECUTIVE SUMMARY

With the signing of an agreement on an expanded European Economic
Area (October 1991), the submitting of a formal application to
the European Union (November 1992) and the negotiating of a
membership agreement with the EU (March 1994), Norway's economy
and foreign trading system are on the verge of some significant
changes.  In the short term (until 1995 at least), the European
Economic Area agreement (EEA) will not alter significantly the
trading patterns between the United States and Norway.  However,
the first phases of the EEA came into force at the end of 1993;
and now, Norway has just succeeded in negotiating its membership
agreement with the EU.  If the Norwegian population approves the
EU agreement in a nation-wide referendum on 28 November 1994,
then Norway's economy and foreign trading patterns must change
dramatically to be in sync with EU standards and regulations.
(At the writing of this report, however, there are more
Norwegians opposing than favoring EU membership.)

These dynamic changes currently waiting to break over Norway's
shores can create excellent possibilities for many American
companies, while at the same time complicating some traditional
commercial relationships between our two countries.

                             THE IMPORT MARKET

The bulk of imports is made up of manufacturing products;
machinery and equipment, various intermediate goods, (seasonal)
agricultural products and imports of other food and beverages.
Total 1993 Norwegian imports stood at nearly USD 24.2 billion.

                          COMMERCIAL ENVIRONMENT

The Norwegian economy remains highly dependent on foreign trade.
For example, Norway's combined merchandise exports and imports
account for nearly 56 percent of GDP, compared with 16 percent in
the United States.  Oil and gas products dominate Norway's
foreign trade, representing the bulk of its exports (over 40
percent).  Thus, the value of Norway's combined merchandise
exports tends to fluctuate along with world oil prices, while
imports depend on domestic economic activity and variations in
foreign exchange rates.

In terms of combined merchandise exports and imports to a single
country, the United States is Norway's fourth largest trading
partner after the UK, Sweden and Germany.  In 1993, U.S. exports
to Norway totalled USD 1.2 billion.  (Based on U.S. trade data.)
Taken as a trading bloc however, the EU countries remain Norway's
principal commercial partner.  Also, the other Nordic countries
remain important trading partners.

                             BUSINESS ATTITUDE

The government supports free trade and noninterference.  However,
there are some limitations to this support, especially regarding
areas like fisheries and agriculture, and there are some
limitations based on environmental considerations.

Generally, Norwegian authorities are positive toward foreign
investments.  There are, however, no incentives directed
specifically at foreign investors.  An industrial production
facility placed in an underdeveloped area would be favored by
local and central government bodies.

The United States and Norway remain strong friends, allies, and
trading partners. Norway is a key NATO member, signator of most
of the significant international trade agreements and a player in
the multinational scene well beyond what is expected from a
country with such a small, but influential, population.  Some 200
American companies have 100 percent owned subsidiaries in Norway.
In addition to those with a direct presence in Norway, there are
2,617 other American companies with Norwegian companies acting as
agents and/or distributors. Thus, Norway is a fertile ground for
agent/distributor agreements.

                       MAJOR BUSINESS OPPORTUNITIES

Special investment opportunities are found in areas of work-
saving machinery (e.g. computers) because of high labor costs and
also because the demand for these kind of products are growing.
The government has a desire to reduce dependency on the oil and
gas industry, so any manufacturing/production facility placed in
other sectors would be welcomed and well received, both centrally
and locally.

(See following chapter for best U.S. export prospects.)