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Iceland

Iceland

Iceland presented its application for membership of the European Union on 17 July 2009 and Accession negotiations were officially opened on 27 July 2010. However, in April 2013, Iceland decided to put the EU accession negotiations on hold.

Trade picture

  • Iceland's exports to the EU are dominated by fish and fishery products to the EU. Iceland is the third largest exporter of fish and fishery products to the EU after Norway and China in value terms. In 2011, Iceland’s exports totaled more than €933m which is equivalent to 5% of all EU fish imports. The EU has a trade deficit towards Iceland in this sector.
  • Iceland grants duty free market access for most fish and fishery products. The EU also applies tariff concessions on some fish and fishery products originating in Iceland, e.g. cod.
  • In recent years Icelandic exports of manufactured goods have been growing rapidly, led by aluminium and medical and pharmaceutical products.
  • Iceland's exports of services increased significantly in the years before the economic and financial crisis and in 2009.

EU-Iceland "trade in goods" statistics

Trade in goods 2010-2012, € billions
Year EU imports EU exports Balance
2010 2.7 1.7 -1.0
2011 2.9 1.7 -1.2
2012 2.7 1.9 -0.9

EU-Iceland "trade in services" statistics

Trade in services 2009-2011, € billions
Year EU imports EU exports Balance
2009 0.8 0.3 -0.5
2010 0.7 0.2 -0.5
2011 0.7 0.3 -0.4

Foreign direct investment

Foreign direct investment 2011, € billions
Year Inward stocks Outward stocks Balance
2011 6.0 2.3 -3.7

More statistics on Iceland

EU and Iceland

The EU is by far Iceland's most important trade partner, followed by Norway, the United States, Brazil, China, Japan and Switzerland.

Iceland is a member of the European Economic Area and the European Free Trade Association.

Iceland's economic and trade relations with the EU are mainly governed by the bilateral Free Trade Agreement with the EEC since 1972, and the agreement on the European Economic Area which entered into force in January 1994.

Iceland offers a Generalised Scheme of Preferences treatment for the Least Developed Countries. The Icelandic system is, however, more restrictive than that of the EU.

Trading with Iceland