SHAH ALAM: A free-trade agreement (FTA) between Malaysia and Norway is in the offing as obstacles have been cleared to start negotiations, said Norwegian Trade and Industry Minister Trond Giske yesterday.

He said a joint declaration of economic cooperation would be signed within the next few months between Malaysia and the European Free Tade Association (Efta), comprising Norway, Switzerland, Liechtenstein and Iceland. Switzerland will represent Efta in coordinating the negotiations.

“The text is ready; we just have to find the time. From what we’ve seen from other countries where we have FTAs, we can double or even triple our trade to that country,” he said after visiting the headquarters of DiGi.com Bhd yesterday.

Last year, imports from Norway to Malaysia were worth RM600 million, while Malaysian exports to Norway were worth RM1.2 billion, he said, adding that there was more room for investment in view of Malaysia’s population and the size of both countries’ economies.

Among the industries that Norway had expertise in are oil and gas, fish farming and aquaculture, construction, telecommunications, defence, renewable energy, shipping and the maritime field, he said.

“We have a lot of areas where we have common interest, and I think Malaysian companies will also find a strong market in Norway where we have business opportunities for them,” he added.

Giske is a member of the delegation accompanying Norwegian Crown Prince Haakon and Crown Princess Mette-Marit on a three-day official visit to Malaysia.

When asked why Iceland was affected more by the 2008 global economic crisis than its Nordic counterparts, Giske said Iceland had, over the recent years, relied heavily on the financial sector and the “speculation economy”, and financial institutions were the worst hit by the downturn.

“As one economist said, Iceland tried something very new — capitalism without capital. But I’m confident the Icelandic people will successfully re-establish a sound economy because they’re hardworking, dedicated and they’re descendants of Norwegians!” he said.

Giske said Norway was relatively unaffected by the downturn because of three factors — the quick governmental response in cutting interest rates, a strong public sector as well as the Norwegian economy not being driven by consumption of goods.

Having a strong public sector, with almost all schools, hospitals and welfare being public, meant citizens had their income, which boosted consumption of services and sales during the downturn, he said. “The Norwegian model of strong private and public sectors proved to be a very reliable one in hard weather,” he said.