Norwegian Military Industry Can Lose Billions

When buying military equipment from abroad for more than 50 million Norwegian authorities require that the foreign supplier enters into an agreement on industrial cooperation – so-called repurchase – from Norwegian companies. But just before summer Norway could fall from the ability to generate repeat business from suppliers in the EEA, writes Nationen.

According to the Defense Ministry, repurchase scheme in the European Union currently provides Norwegian industry with contracts valued at between 1 and 1.5 billion annually.

The new EU directive on defense and security procurement which previously allowed opportunities to demand repurchase of suppliers in the EEA, lapses. The directive came into force in the EU in 2011 and was recently incorporated in the EEA Agreement.

– We can not guarantee future export growth, but we are also confident that Norwegian defense industry is likely to increase its exports in the EEA, so that it exceeds the loss arising from the cancellation of repurchase and joint venture contracts, – said State Secretary Erik √ėwre Thorshaug (Ap) from the Defense Ministry.

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