End of a Diplomatic Dispute Between the USA and Norway in Sight

The diplomatic conflict between the United States and Norway regarding the decision of the Norwegian Sovereign Wealth Fund to divest from the American construction machinery manufacturer Caterpillar appears to be approaching a resolution. The Norwegian Foreign Minister, Espen Barth Eide, expressed confidence that the controversy could soon be settled. The conflict was sparked by the decision of the Norwegian Sovereign Wealth Fund, the largest of its kind globally with a volume of two trillion dollars, to withdraw its investments in Caterpillar. The trigger was the delivery of Caterpillar construction machinery to Israel, which was used in the Gaza Strip and in the occupied territories of the West Bank. The U.S. State Department expressed concerns about this move in September. Republican U.S. Senator Lindsey Graham mentioned potential retaliatory measures such as tariffs and visa restrictions. However, Barth Eide made it clear that the divestment was not a decision of the Norwegian government but a resolution by the board of the central bank, made on the recommendation of the fund's ethical council and based on parliamentarily established guidelines. The fund's ethical council found that Caterpillar products, including bulldozers, are used by Israeli authorities to violate international humanitarian law. This includes, among other things, the widespread, unlawful destruction of Palestinian property. According to the council, Caterpillar has not taken measures to prevent such use. These decisions led to the fund selling all its shares in Caterpillar by the time of the public announcement.