The Dutch economy is one of the most open and

internationally oriented in the world. The Netherlands is the sixth largest U.S. export market in the world, as well as the one with which the United States has its largest bilateral trade surplus ($6.3 billion in 1989).

6. Export Subsidies Policies

The Netherlands practices no preferential or

discriminatory export or import policies with the exception of those which result from its membership in the European Community. Besides the intra-EC trade regime, these

preferences include the EC Generalized System of Preferences, the ACP System of Preferences for Asian, Caribbean, and Pacific Countries.

7.

Protection of U.S. Intellectual Property

The Netherlands belongs to the World Intellectual Property Organization (WIPO) and is a signatory of the Paris Convention for the Protection of Industrial Property, the Berne Convention for the Protection of Literary and Artistic Works, the Universal Copyright Convention, the Patent Cooperation Treaty and the Budapest Treaty on the

International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure.

The Netherlands conforms to accepted international practice for protection of technology and trademarks. Patents for foreign investors are granted retroactively to the date of original filing in the home country, provided the application is made through a Dutch patent lawyer within one year of the original filing date. Patents are valid for 20 years. Legal procedures exist for compulsory licensing if the patent is determined to be inadequately used after a period of three years, but these procedures have rarely been invoked. Since the Netherlands and the United States are both parties to the Patent Cooperation Treaty (PCT) of 1970, patent rights to the Netherlands may be obtained if the PCT application is used.

The enforcement of anti-piracy laws remains a concern to U.S. producers of software, audio and video tapes, and textbooks. We are urging Dutch support of stronger intellectual property protection in the GATT. The Dutch government has proposed legislation which would increase the penalties for copyright infringement.

The Dutch government has recognized the problems encountered in protecting intellectual property such as

pirated home videos and has proposed legislation to revise the Dutch Copyright Law to introduce higher penalties for copyright infringement.

The right of Dutch workers to associate freely is well established, and 30 percent of the employed labor force belong to unions. Unions, while entirely free of government and political party control, may and do participate in political life. They are free to maintain relations with recognized international bodies and to form domestic federations. All union members, except civil servants, have the legal right to strike. Even the Dutch military is free to join unions. Legislation is pending which would grant the right to strike to civil servants not involved in "lifesaving" activities.

b. Right to Organize and Bargain Collectively

The right to organize and bargain collectively is recognized and well established in the Netherlands. Discrimination against union membership does not exist either in law or in practice. Dutch society has developed a social partnership between government, private employers, and trade unions which grew out of post-World War II reconstruction efforts. This "Harmony Model of Industrial Relations" involves all three participants in negotiating collective bargaining agreements.

C.

Prohibition of Forced or Compulsory Labor

Forced or compulsory labor does not exist. The Dutch constitution prohibits forced labor.

d. Minimum Age for Employment of Children

Child labor laws exist and are enforced. The minimum age for employment of young people is 16. At 16 years of age, youths may work full time only if they have completed the mandatory 10 years of schooling and only after obtaining a work permit (except for newspaper delivery). Those still in school at age 16 may not work more than 8 hours per week. Laws prohibit youths under the age of 18 from working at night, overtime, or in areas which could be dangerous to their physical or mental development. The Netherlands has a reduced minimum wage for employees under age 23. The purpose of this law is to provide incentives for the employment of young people, one of the groups with the highest rate of unemployment.

Dutch law and practice adequately protect the safety and health of workers. There is no legally-mandated work week; collective bargaining dictates the length of the work week. The average workweek for adults is 38 hours. The legally-mandated minimum wage is approximately $278 per week.

f. Rights in Sectors with U.S. Investments

The above described worker rights hold equally for all

sectors in which U.S. capital is invested.

Source: U.S. Department of Commerce, Survey of Current Business August 1990, Vol. 70, No. 8, Table 13

NORWAY

Key Economic Indicators

(Millions of Norwegian Krone (NOK) Unless Otherwise Noted)

4/

5/

6/

Norwegian foreign trade statistics.

Foreign assets minus foreign liabilities.

Total interest and principal paid on long-term debt by

private and public sector.

Energy remains Norway's predominant resource base, with no major changes expected in the next decade. Offshore the country has crude oil reserves sufficient to last over 20 years and enough natural gas to last nearly 100 years. On the mainland the availability of abundant hydropower supports energy intensive industries such as metals and fertilizers. The small size of the population limits Norway's human resource base; a highly centralized collective bargaining process and a restrictive immigration policy limit its flexibility in increasing industrial competitiveness.

The petroleum sector and the associated service industries will likely remain the engine of economic growth for the medium term, but energy-intensive and export-oriented industries such as metals and chemicals will also continue to be prominent. Several sectors producing for the domestic market remain inefficient and supported by subsidies. These will likely experience a painful period of adjustment in the years ahead because the government will need to continue to reduce subsidies in response to continuing budgetary pressure and economic developments elsewhere in Europe.

Norway has opted for an egalitarian welfare state which redistributes incomes through taxes and subsidies. State intervention in the economy is significant and the major industrial groups, Statoil and Norsk Hydro, remain state controlled. Moreover, restrictions are maintained on foreign ownership of Norwegian industry, including financial institutions. It is realistic to expect some lessening of government intervention and control in the 1990's.

The government's dependence on petroleum revenue increased substantially over the past decade. On the expenditure side the most significant development during this period was a rise in subsidies and social programs, financed by petroleum revenues. In 1986 budgetary pressures increased because of slumping oil prices. The subsequent recession prompted stimulatory spending and the budget deficit increased significantly between 1986 and 1990. Budgetary pressure may ease in 1991, however, if world oil prices remain high. NO general tax incentives exist to promote investment although tax credits and government grants are offered to generate more investment in northern Norway and accelerated depreciation allowances are available to the shipping industry. The GON plans to implement limited tax reform in 1992 (e.g., lowering of personal tax rates) but the tax burden will remain relatively heavy because of the high cost of public welfare programs.

The government of Norway controls the growth in the money supply through reserve requirements imposed on banks, open market operations, and variations in the Central Bank discount rate. The government strives to maintain a stable exchange rate, thereby limiting its ability to use the money supply as an independent policy instrument.