Cost of living is just so high here ...

Well, the government revealed its budget for next year yesterday, and hidden in all the paper and rhetoric was an interesting increase in customs duty on imported meat and cheese.

I've long known about the protectionist attitude Norwegians have towards their farmers, who because of the climate and high cost of living produce extremely expensive food!! However, I was shocked to read this. For example, beef, which used to get customs duty of just under £20 per kilo slapped on it at the border will now be subject to a wapping 344% duty. That means a £10 kilo of beef will actually cost an importer nearly £35 per kilo and that is before it has got to the shops!

Lamb will have a huge 429% duty laid on it and cheese will get a 277% duty charged (although some more popular imported cheese will stay at the 'lower' rate paying a fixed rate of NOK 26.15 per kilo instead.

That is so protectionist it is unbelievable. With imports price fixed out of the market there is no competition to the Norwegian meat and cheese producers, so they can basically charge whatever they like (although I guess common sense would stop them from charging more than imported meat and cheese - suppose it depends on how greedy everyone is in the producer/seller food chain).

This time the EU can do nothing about it, as Norway is perfectly within its rights apparently according to the WTO trade agreement made in 1995. So with 70% of all food imports coming.from the EU, they are understandably a little upset. Particularly in the current economic climate!

One thing is that Norway has decided not to slap dity on imports from developing countries, which apparently includes Argentina - they have good beef there I hear!