Impacts of the European Economic Area Agreement on the structure and concentration of roundwood sales in Norway

In 1997 the European Free Trade Agreement (EFTA) Surveillance Authority (ESA) ruled that negotiation practices of the Norwegian forest owners’ associations violated obligations under the European Economic Area (EEA) Agreement. This article analyzes the effects the ESA ruling has had on concentration in the Norwegian roundwood market. The analysis detects no evidence of increased competition in the market. In fact, there are indications to the contrary: forest owners’ associations have increased their market share and in most regions concentration has increased significantly. However, development of a few larger independent firms that could challenge the forest owners’ associations as brokers of roundwood may prevent monopolizing of the Norwegian market. Eventually the market could even become more efficient.