A TRADE war over the price of salmon imported from Norway has been averted after Oslo and the European Commission settled a dispute following complaints that the fish was being sold in the European Union at unfairly low prices.

The little-noticed deal was struck after the commission backed down on plans to set a tariff of 16 per cent on imported salmon, which it had originally proposed earlier this year. Instead Europe will simply set a minimum import price — although this was the kind of measure that was allegedly flouted by Norwegian producers previously.

This time, though, Norway has agreed to respect the European Union’s minimum, in return for which the Scandinavian country will not admit to any price dumping, which Scottish salmon farmers estimate has cost them £200 million in the past four years. However, representatives of Scottish and Irish salmon producers were more cautious, not least because the agreement still requires further consultation with member states, most of which, unlike the UK in particular, are not convinced that there is a long-term need for sanctions.

But despite the concerns, Angus Moran, secretary of the EU Salmon Producers’ Group, a Scottish and Irish lobby organisation, said that the “nature and the price level of the measures is largely in line with our wishes”.

The agreement, made this month, ends a dispute that Norway had threatened to take to the World Trade Organisation after the commission imposed the tariff on Norway and other external producers in April.

Peter Mandelson, the EU Trade Commissioner, said at the time the deal was struck that the “balanced agreement ensures stable and sustainable market conditions that are fair for producers, exporters and processors alike. This negotiated solution reflects the excellent trading relationship between the EU and Norway.”

Norway dominates salmon production, accounting for 60 per cent of the industry, and many farms in Scotland and Ireland are owned by Norwegian companies. In all about three-quarters of the industry in the UK is owned by Norwegian or Dutch-based producers.

The Commission will set an import price of €2.81 (£1.86) per kilo, which it believes reflects Norway’s producer costs. The price would be adjustable according to market conditions.

European officials argued that ending the interim tariff would not result in additional costs for European exporters, and would ensure that farmers outside the Union did not sell at below what the EU believes is Norway’s cost of production.

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