News and Events
New momentum for Iceland-Canada trade relations
The conclusion of a Free Trade Agreement between the EFTA-states (i.e. Iceland, Liechtenstein, Norway and Switzerland) and Canada was announced on June 7. The negotiations were started in 1998 but stalled in 2000 when an agreement had almost been completed. The outstanding issues were relating to import tariffs on ships to Canada. The EFTA could not accept an exemption for ships in the agreement. It has now been decided that the tariffs on ships be phased out over an extended period of time. The agreement will be formally signed at the earliest convenience and then submitted to the respective national parliaments for ratification.
For Iceland the agreement contains important and advantageous terms. By and large, tariffs on all imported manufactured goods in two-way trade between the EFTA-states and Canada will be abolished. With a bilateral arrangement between Iceland and Canada there are provisions for specific Icelandic exports to Canada, like fish produce, horses, lamb meat products, the Icelandic yogurt-like product “skyr”, outwear, plastic fish tubs, scales and machinery. To reciprocate, Iceland opens its market for tariff free imports of Canadian industrial goods and for agricultural products on a similar basis as stipulated in Iceland’s agreement with the EU. At Iceland’s initiative, the agreement also includes bilateral terms with respect to temporary residence and work permits for key personnel who are engaged in services and promotion of trade between the countries.