RESTRICTEDWORLD TRADE
ORGANIZATIONTN/S/O/ISL
4 April 2003
(03-1895)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM ICELAND
Initial Offer
The following initial offer has been received from the delegation of Iceland on 31 March with
the request that it be circulated to Members of the Council for Trade in Services.
_______________
At the Ministerial Conference in Doha Members agreed that initial offers should be submitted
by 31 March 2003.
Please find enclosed Iceland’s initial offer to the Services Negotiations. It should be noted
that initial offers in Iceland’s schedule of specific commitments are in line with Secretariats noteJOB(02)/88.
Iceland reserves its right to revise or make supplements to this initial offer throughout the
negotiations.TN/S/O/ISL
Page 2ICELAND – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
IN THIS SCHEDULE
3) All foreign investment and  currency
transfers must be reported to the Central Bank of
Iceland for statistical purposes
Service providers shall inform the Ministry of
Commerce of investments made by non-residents in business enterprises in Iceland andthe Central Bank of Iceland of investments
made by non-residents in securities in Iceland.
Investment by non-residents in the manufacturing
industry, other than power-intensive industry, trade
services, communications and fish farming may
not exceed 25% of the total investment of the
relevant sector without special permission.3) Treatment accorded to subsidiaries of third-
country companies formed  in accordance with the
law of an EEA Member State and having their
registered office, central administration or principalplace of business within an EEA Member State maynot be extended to branches or agencies establishedin an EEA Member State by a third-countrycompany
Total investment by a non-resident or the joint
investment of financially related non-residents in
enterprises in the above-mentioned sectors may not
exceed 250 mill. ISK within a year unless a special
concession is givenTreatment less favourable may be accorded tosubsidiaries of a third-country company formed inaccordance with the law of an EEA Member Statehaving only their registered office in the territory of
an EEA Member State unless they show that they
possess an effective and continuous link with theeconomy of one of the EEA Member StatesTN/S/O/ISL
Page 3Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
All foreign investment of a Foreign State or
companies/organizations owned by a Foreign State
requires a special concession of the Ministry ofCommerceThe majority of founders of limited liability
companies must be resident in Iceland unlessexempted from this requirement by the Ministryof Commerce.  Citizens of other EEA and EFTAMember States are exempted from the residency
requirement
Managers and the majority of the members of the
board of directors in all domestic enterprises mustbe domiciled
 resident in Iceland unless exempted
from this requirement by the Ministry of Commerce .
Citizens of other EEA and EFTA Member States
are exempted from the residency requirement
Non-residents cannot conclude an agreement onreal-estate lease without the permission of theMinistry of Justice if the lease is for a periodexceeding three years and not for use in conducting
its normal business activitiesAt least one of the auditors of an Icelandic limited
liability company must be a resident in Iceland or acompetent resident CPA company
Non-residents may only acquire real estate in
conjunction to their business activities and can
only obtain ordinary proprietary rights linked to
the real estate .  Non-residents are thus excluded
from obtaining full property rights of real estate if
unusual rights are linked to it, such as exploitation
rights as regards waterfalls, geothermal energy, etcNon-residents may only acquire real estate inconjunction to their business activities and can onlyobtain ordinary proprietary rights linked to the real
estate .  Non-residents are thus excluded from
obtaining full property rights of real estate if unusualrights are linked to it, such as exploitation rights asregards waterfalls, geothermal energy, etc
Contracts concerning ownership and long-
term use of real-estate by non-residents are not
valid until the Ministry of Justice has endorsed it in
writing
Non-residents, natural as well as legal persons,
involved in trade in goods or rental of videos, need
a trade permit but such regulated trade licences are
required  for both Icelandic and non-resident
providers of serviceContracts concerning ownership and long-
term use of real-estate by non-residents are not valid
until the Ministry of Justice has endorsed it inwritingTN/S/O/ISL
Page 4Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
All provision of services by natural persons, as
self-employed or taking part in a business
enterprise with unlimited liability, needs a
concession, by the Ministry of Commerce, if the
persons involved are non-residents
All sectors: Movement of
personnel               Movement of Personnel
Temporary entry of service providers               Movement of Personnel
Temporary entry of service providers
4) Unbound except the temporary entry of
the following service providers as intra-corporate
transferees, which Iceland shall permit without
requiring compliance with labour market tests:
Executives:  persons who primarily direct the
management of the organization covered by the
agreement and establish its goals and generally
have a wide decision-making authority. Executives
would not necessarily perform tasks related to theactual provision of the service.4) None for the categories offered under
market access.   Unbound except for measures
concerning the categories of natural persons
referred to in the market access column.
Managers:  persons who direct the Organization
covered by the agreement or its department and arein a senior level responsible of the serviceproviding functions of the organization bysupervising and controlling and having alsoauthority to hire and fire personnel or recommendsuch and other personnel actions.
Specialists:  persons within the organization who
possess knowledge at an advanced level ofexpertise or otherwise essential or proprietal to theorganization's service, research equipment,techniques or management.TN/S/O/ISL
Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Service sellers:  persons who as representatives of
a service provider covered by the agreement are
seeking temporary entry for purposes ofnegotiation for the sale of services or entering into
agreements to sell services for that service
provider, where this selling activity is not directedto the general public.
All sectors: Subsidies (Theissue of a definition of
subsidies remains to be
determined in the context ofnegotiations under Article XVof the GATS).Subsidies
1
3) None
4) NoneSubsidies1
3) Eligibility for subsidies may be limited to
juridical persons established within theterritory of Iceland.  Subsidies related toresearch and development are unbound.
4) Subsidies available only to natural persons
may be limited to Icelandic citizens.
                                                
1 The definition of subsidies remains to be determined in the context of negotiations under Article XV of the GATS.TN/S/O/ISL
Page 6Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
II. SECTOR SPECIFIC COMMITMENTS
1. BUSINESS 
SERVICES
A. Professional 
Services
Legal Services 
(Applicable parts 
of CPC 861)
- Legal advice
activities on homecountry law1) None
2) None3) None
   Members of the General Bar
Association of Iceland have an
exclusive right to represent clientsbefore courts in Iceland.
4) Unbound except as indicated in the
horizontal section.  Members of  the
General Bar Association of Iceland have
an exclusive right to  represent clients
before all the major courts in Iceland.2) None1),3),
Unbound
4) Unbound except as indicated in the
horizontal section.   Icelandic law exam or
an equivalent thereto, conditions of
nationality, or previous residency of at least
one year when practising legal services as a
member of the General Bar Association in
Iceland
- Legal advice on
international law andforeign legalconsultancy1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) NoneTN/S/O/ISL
Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(b) Accounting, auditing
and book-keepingservices (CPC 862)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section. Requirement of 
residence. Icelandic exam for 
certified accountants required 
subject to exemption by the 
Minister of Finance.1) None2) None3) None4) None
   Icelandic exam for certified 
accountants (CPA’s)  required or an 
equivalent thereto  subject to 
exemption by the Minister of 
Finance.
(c) Taxation services 
(CPC 863)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
(d) Architectural 
services (CPC 
8671)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
(e) Engineering 
services (CPC 
8672)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
(f) Integrated 
Engineering 
services (CPC 8673)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
(g) Urban planning and
landscape architectural
services (CPC 8674)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) NoneTN/S/O/ISL
Page 8Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(i) Veterinary services 
(CPC 932)1) None
2) None3) None
4) Unbound except as indicated in the
horizontal section.  Number of
veterinarians in rural districts is limited.1) None
2) None3) Ability in the Icelandic language 
required.
4) Ability in the Icelandic language 
required.
(k)          Other 1)           None
2)           None
3)           None
4)           Unbound except as indicated in the 
horizontal section1)           None
2)           None
3)           None
4)           NoneTN/S/O/ISL
Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Computer and 
Related Services
(a) Consultancy 
services related to 
the installation of 
computer hardware (CPC 841)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
(b) Software 
development  
(including software 
implementation) CPC 842)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
(c) Data processing 
services (CPC 843)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) Concession needed if personal-data 
is to be processed outside Icelandic 
jurisdiction
2) None3) None4) None
(d) Data base services
(CPC 844)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) Concession needed if personal-data 
is to be processed outside Icelandic jurisdiction
2) None3) None
4) NoneTN/S/O/ISL
Page 10Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(e) Other
- Maintenance and
repair services ofoffice machinery and
equipment including
computers (CPC 845)
- Other computer 
services (CPC 849)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) Concession needed if personal-data 
is to be processed outside Icelandic jurisdiction
2) None3) None
4) None
C. Research and 
development 
Services
(a) R&D services on 
Natural Sciences (CPC 851)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1),2) A license is needed for the 
importation of research equipment.  Natural history specimens must not 
be exported from the country unless 
permitted by the Icelandic Institute 
Museum
 of Natural History 
(“Náttúrufræðistofnun Íslands”) .
3),4) None.  No foreigners are permitted to
undertake scientific research work in the
field of natural sciences without having
first obtained a research permit issued by
the Icelandic Council of Science  field of
natural sciences without having first
obtained a research permit issued by the
Icelandic Council of ScienceTN/S/O/ISL
Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(b) R&D services on 
social sciences and humanities (CPC 852)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1),2) Archaeological finds must not be exported
from the country unless permitted by theNational Archaeological
 Museum Council
("Þjóðminjaráð")  (“Safnaráð”)
3),4) All archaeological research whether by
Icelandic or foreign researchers is
subject to a permit granted by the Icelandic
Archaeological Preservation Agency
Committee ("fornleifanefnd")
(“Fornleifanefnd ríkisins”)
(c) Interdisciplinary R&D
services (CPC 853)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
D. Real Estate 
Services
(a) Real estate services
involving own or leased property 
(CPC 821)1) None
2) None3),4)
Deposits or liability insurance to cover
loss caused to clients. All licenses to
provide services on sales of real estate arepersonal authorizations.
4) Unbound except as indicated in the 
horizontal section1) None
2) None3),4) Condition of one year previous residency in
order to obtain licence to provide services
in residential building and land sales, andother related intermediary services forpurchase and sale of real-estate
(b) On a Fee or 
Contract basis(CPC 822)1) None
2) None3),4)
Deposits or liability insurance to coverloss caused to clients. All licences toprovide services on sales of real-estate arepersonal authorization.
4) Unbound except as indicated in the 
horizontal section1) None
2) None3),4) Condition of one year previous residency in
order to obtain licence to provide servicesin residential building and land sales, andother related intermediary services for
purchase and sale of real-estateTN/S/O/ISL
Page 12Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
E. Rental/Leasing 
Services without 
Operators1) None
2) None3) Leasing services must be provided either
by corporation with a limited liability(leasing companies) or registered
commercial banks or savings banks
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) Majority of the board of a leasing company
shall be resident in Iceland. The managershall be resident in Iceland and a citizen of
a Nordic Country.
4) None
(a) Relating to ships
(CPC 83103)1) None
2) None3) To be registered in the ship register 
the ship must be owned by 
Icelandic natural or juridical persons who are resident in Iceland. Further nationality restrictions on fishing vessels.
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
(b) Relating to aircraft
(CPC 83104)1) None
2) None3) To be registered in the aircraft register the
aircraft must be owned by Icelandic
natural or juridical persons resident inIceland
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
(c) Relating to other 
transport equipment (CPC 83101 + 83102 + 83105)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) Residency requirement for car rental
services
4) Residency requirement for car rental
servicesTN/S/O/ISL
Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(d) Relating to other 
machinery and equipment (CPC 
832)
(CPC 83106 - 83109)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(e) Other (CPC 832) 1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
F. Other Business 
Services
(a) Advertising 
services (CPC 871)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
(b) Market research and
public opinion polling
services (CPC 864)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) Concession needed if personal data is to be
processed outside Icelandic jurisdiction
2) None
3) None4) None
(c) Management 
consulting services 
(CPC 865)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
(d) Services related to 
man. consulting 
(CPC 866)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) NoneTN/S/O/ISL
Page 14Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(e) Technical testing and
analysis services(CPC 8676)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(f) Services incidental 
to agriculture, hunting and forestry (CPC 881)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(i) Services incidental to
manufacturing (CPC884 + 885 /except for88442)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(k) Placement and 
supply services of personnel (CPC 872)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(m) Related scientific 
and technical consulting services (CPC 8675)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(n) Maintenance and repair
of equipment (CPC633+8861-8866; notincluding maritimevessels, aircraft or
other transport
equipment)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) NoneTN/S/O/ISL
Page 15Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(o) Building-cleaning 
services (CPC 874)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(p) Photographic 
services (CPC 875)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(q) Packaging services
(CPC 876)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(r) Printing,  and 
publishing (CPC 88442)1) None
2) None3),4)
Nationality or  rResidency requirement of
at least one year  for publishing of
newspapers or magazines within the
national territory.  Nationality and
Residency requirement for editors
4) Unbound except as indicated in the
horizontal section1) None
2) None3) None
4) None
(s) Convention 
services (CPC 87909)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section.1) None
2) None
3) None4) NoneTN/S/O/ISL
Page 16Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
2. COMMUNICATION 
SERVICES
C. Telecommunication
Services
(a) Voice telephony(b) Packet-switched data
transmission services
(c) Circuit-switched data
transmission services
(d) Telex services(e) Telegraph services1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) Unbound except as indicated in the 
horizontal sectionIceland undertakes
additional commitments ascontained in theattachment, all parts of
which are equally binding.
(f) Facsimile services
(g) Leased circuit 
services
(o) Other
- Mobile and
personal communications services and 
systems
Value-added 
services2
Electronic mail, Voicemail, On-lineinformationand Data Base Retrieval,EDI, Code and 
Protocol
Conversion1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
                                                
2  Excludes voice telephony, telegraph, telex, packet and circuit switched data services, mobile radiotelephony, paging and sate llite services.TN/S/O/ISL
Page 17Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3. CONSTRUCTION 
AND RELATED ENGINEERING SERVICES
A. General Construction
Work for Buildings
(CPC 512)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section.1) None
2) None
3) None4) None
B. General Construction
Work for Civil
Engineering
(CPC 513)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
C. Installation and 
Assembly Work
(CPC 514+516)1) None
2) None
3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None4) None
D. Building 
Completion and 
Finishing Work 
(CPC 517)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) NoneTN/S/O/ISL
Page 18Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
4. DISTRIBUTION 
SERVICES (excluding trade in arms, alcoholic beverages, tobacco 
and pharmaceutical 
products)
A. Commissions 
Agents' Services 
(CPC 621)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
B. Wholesale Trade 
Services (CPC 622)1) None2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
C. Retailing Services
(CPC 631+632 6111 +6113 + 6121)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
D. Franchising (CPC 
8929)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
E.           Other 1)           None
2)           None
3)           None
4)           Unbound except as indicated in the 
               horizontal section1)           Non e
2)           None
3)           None
4)           NoneTN/S/O/ISL
Page 19Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
6. ENVIRONMENTAL
SERVICES
A. Sewage Services
(CPC 9401)1) Unbound*
2) None3),4)
Environmental operation license 
required
4) Unbound except as indicated in the 
horizontal section1) Unbound*
2) None3) None
4) None 
B. Refuse Disposal 
Waste (CPC 9402)1) Unbound*
2) None
3),4) Environmental operating license required
4) Unbound except as indicated in the 
horizontal section1) Unbound*
2) None
3) None
4) None
C. Sanitation and 
Similar
Services (CPC 
9403)1) Unbound*
2) None3) None4) Unbound except as indicated in the 
horizontal section1) Unbound*
2) None3) None4) None
D. Other (CPC 9409) 1) Unbound*
2) None3),4)
Environmental operating license required
4) Unbound except as indicated in the 
horizontal section.1) Unbound*
2) None3) None
4) None
                                                
* Unbound due to lack of technical feasibility.TN/S/O/ISL
Page 20Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
7. FINANCIAL SERVICES
(i) Iceland undertakes commitments on financial services in accordance with the "Understanding on Commitments in Financial Servi ces" (the Understanding).
(ii) Market access commitments with respect to modes 1) and 2) and bound in this Schedule to the extent of the obligations in B.3 and B.4   paragraphs 3 and 4  of the
Understanding.
A. Insurance and
Insurance related
Services1) The supply of direct insurance is 
reserved for Icelandic insurance undertakings or authorized insurance undertakings from 
another EEA and EFTA Member State.
The supply of insurance broker services is
reserved for insurance brokers authorizedby the Ministry of Commerce orinsurance brokers authorized by
competent authorities of another EEA
Member State.1) None
2) None
3) Insurance undertakings not established in
an EEA Member State require
authorization to establish branch officesin Iceland.2) None
3) The majority of the founders
Founders
 of an insurance undertaking must
be Icelandic residents or legal entitiesregistered in Iceland, citizens of anotherEEA  or EFTA  Member State residing in
an EEA or EFTA Member State or legal
entities registered in an EEA or EFTA
Member State.
Managers and board members of
insurance undertakings shall be residentin Iceland.  Citizens of other EEA andEFTA Member States are exempted
from the residency requirement.  The
Minister of Commerce may grantexemptions from this requirement.TN/S/O/ISL
Page 21Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Any investor, whether resident or non-
resident, who acquires or intends toacquire a qualifying holding in aninsurance undertaking must give advancenotice to the Insurance
 Financial
Supervisory Authority.  The Authority
may refuse the acquisition or the exerciseof ownership if it believes that theacquisition will affect the soundfunctioning of the enterprise.Branch offices of non-EEA insurance
undertakings must be managed by aresident agent.
Insurance brokers must be resident in
Iceland or citizens or legal entities of
another EEA Member State residing in anEEA Member State.  The Minister of
Commerce may grant exemptions from
this requirement.
4) Unbound except as indicated in the 
horizontal section.4) None
B. Banking and Other
Financial Services
(excluding 
insurance)1) None
2) None
3) Credit institutions and undertakings
engaged in securities services establishedin a non-EEA State can establish a branch
or a representative office, subject to
authorization by the Financial
Supervisory Authority, FME.  Ministry
of Commerce.1) Domestic financial institutions shall inform
the Central Bank of Iceland of the balancesof service providers' accounts held by non-
residents.
2) None3) A founder of a credit institution shall be a
natural or legal person resident in Iceland.The Minister of Commerce can grant
exemptions from this requirement.
Citizens and legal persons of other EEAand EFTA Member States are exempted
from the residency requirementTN/S/O/ISL
Page 22Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Credit institutions and undertakings
engaged in securities services can only beestablished as companies with limitedliability.
Commercial banks and savings banks
have exclusive rights to accept depositsand other repayable funds from thepublic.
Public issue of securities shall be
conducted by securities undertakings or
other parties authorized to provide suchservices.
4) Unbound except as indicated in the 
horizontal section.Managers and the majority of the board
members of credit institutions andundertakings engaged in securities servicesand UCITS shall be resident in Iceland.Citizens of other EEA and EFTA Member
States are exempted from the residency
requirement.  The Minister of Commercemay grant citizens of non-EEA MemberStates or non-EFTA Member States  the
same exemptions.
Service providers shall inform the Ministry
of Commerce of investments made by non-residents in business enterprises in Icelandand the Central Bank of Iceland ofinvestments made by non-residents insecurities in Iceland.
4) NoneTN/S/O/ISL
Page 23Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
9. TOURISM AND
TRAVEL RELATEDSERVICES
A. Hotels and Restaurants
(including catering)
(CPC 641-643)1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) Condition of licenses is one year 
previous residency
4) Condition of licenses is one year 
previous residency
B. Travel Agencies and
Tour Operators
(CPC 7471)1) None
2) None3),4)
Deposits or liability insurance to coverloss caused to clients due to bankruptcy
4) Unbound except as indicated in the 
horizontal section1) None
2) None3),4) Condition of licenses is one year 
previous residency of the manager
C. Tourist Guides 
Services (CPC 
7472)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) The right to exercise the profession is
reserved for  resident authorized 
tourist
guides.  Foreign  Non- resident tourist
guides may be granted temporary work
permit  license  on ad hoc basis.TN/S/O/ISL
Page 24Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
10. RECREATIONAL
CULTURAL AND SPORTING SERVICES(other than 
audiovisual 
services)
A. Entertainment 
Services (including 
theatre, live bands 
and circus services) 
(CPC 9619)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) Targeted financial support to specific local,
regional or national activities.
4) None
B. News Agency 
Services (CPC 962)1),2),3) None other than access to management
functions is subject to discretionary
authorizations by competent authorities
4) Condition of nationality and  residency for
the editor of a paper or magazine.Unbound except as indicated in the
horizontal section1) None
2) None
3) None
4) None
C. Libraries, 
Archives, 
Museums and other 
Cultural Service 
(CPC 963)1) None
2) None3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) Targeted financial support to specific local,
regional or national activities
4) NoneTN/S/O/ISL
Page 25Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
D. Sporting and other
Recreational Services (CPC 964)1) None
2) None3),4)
Gambling, coin machines and likeactivities are subject to licensing.Professional B
boxing is illegal but
amateur boxing is allowed  in Iceland .
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) Targeted financial support to specific local,
regional or national activities
4) None
E.           Other 1)           None
2)           None
3)           None
4)           Unbound except as indicated in the 
               horizontal section1)           None
2)           None
3)           Targeted financial support to specific local,
regional or national activities
4)           NoneTN/S/O/ISL
Page 26Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
11. TRANSPORT
SERVICES
A. Maritime Transport
Services
International transport(freight and passengers)CPC 7211 and 7212
including Cabotage
transport 1).1) None
2) None3)(a) Establishment of a registered company for
the purpose of operating a fleet under
Icelandic flag: Unbound except asindicated in the horizontal section.
    (b) Other forms of commercial 
presence 2): None.
4)(a) Ships' crew: Unbound except as indicated
in the horizontal section.
(b) Key personnel employed in relation to a
commercial presence as defined under
mode 3(b) above:  Unbound except asindicated in the horizontal section.1) None
2) None3)(a) Unbound
   (b) None
4)(a) Unbound
    (b) UnboundTN/S/O/ISL
Page 27Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Maritime Auxiliary 
Services
-  Maritime Cargo 
Handling Services 3)1) None
2) None3) None4) Unbound, except as indicated in the 
horizontal section1) None
2) None3) None4) None
-   Storage and 
Warehousing 
Services (CPC 742);
Customs ClearanceServices 4);Container Station and
Depot 5)1) Unbound
*
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) Unbound*
2) None
3) None
4) None
- Maritime Agency 
Services 6);  
Freight Forwarding 
Services 7)1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) None
- Other Supporting and
Auxiliary TransportServices  8)1) None
2) None3) None4) Unbound, except as indicated in the
horizontal section1) None
2) None3) None4) None
                                                
*A commitment on this mode of delivery is not feasible.TN/S/O/ISL
Page 28Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Auxiliary Services as required by
Maritime Transport Operators:The following services are
made available tointernational maritime
transport suppliers on
reasonable andnon-discriminatory termsand conditions:
1.Pilotage
2. Towing and tugassistance
3. Provisioning, fuelling,
watering4. Garbage collecting,ballast waste disposal
5. Port Captain’s     services
6.  Navigation aids7.  Shore-based operationalservices essential to ship
operations, incl.
communications, water,electrical supplies8. Emergency repair
facilities
9. Anchorage, berth,berthing services10. Container handling,
storage and warehousing,
freight transport.TN/S/O/ISL
Page 29Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Where road, coastal
shipping and relatedauxiliary services are not
otherwise fully covered in
this schedule, a multimodaltransport operator shallhave the ability to rent, hire
or charter trucks and related
equipment for the purposeof inland forwarding ofinternational cargoes
carried by sea, or have
access to and use of suchmultimodal activities forthe purpose of providing
multimodal transport
services.TN/S/O/ISL
Page 30Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
C. Air Transport 
Services
Maintenance and repair
of aircraft and parts
thereof1) Unbound*
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) Unbound*
2) None
3) None
4) None
Sales and 
marketing1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) For distribution through CRS of air 
transport services provided by CRS 
parent carrier:  unbound
2) None3) For distribution through CRS of air 
transport services provided by CRS parent carrier:  unbound
4) None
Computer 
Reservations System1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) For obligations of parent or participating
carriers in respect of a CRS controlled byan air carrier of one or more third
countries:  Unbound
2) None3) For obligations of parent or participating
carriers in respect of a CRS controlled byan air carrier of one or more thirdcountries:
4) None
                                                
* Unbound due to lack of technical feasibilityTN/S/O/ISL
Page 31Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
F. Road Transport 
Services
(a) Passenger
transportation(CPC 7121 + 7122)1) None
2) None3),4)
Authorization required for commercial
land transport services.  Numerical quotas
may be imposed as well as exclusivelicenses for certain areas or routes.
4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None
4) None
(b) Freight transportation
(CPC 7123)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(c) Rental of 
commercialvehicles with operator (CPC 7124)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(d) Maintenance and 
repair of road transport equipment (CPC 6112+8867)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) None
(e) Supporting 
services for road transport services(CPC 744)1) None
2) None3) None4) Unbound except as indicated in the 
horizontal section1) None
2) None3) None4) NoneTN/S/O/ISL
Page 32Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
H. Services auxiliary 
to all modes of 
transport
(b) Storage and 
warehousing
services (CPC 742)1) Unbound*
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) Unbound*
2) None
3) None
4) None 
(c) Freight transport
agency services
(CPC 748)1) None
2) None
3) None
4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None
4) None
d) Other (CPC 749) 1) None
2) None
3) None
4) Unbound except as indicated in the 
horizontal section1) None
2) None
3) None
4) None
I.            Other Transport 
Services1)           None
2)           None
3)           None
4)           Unbound except as indicated in the
horizontal section1)           None
2)           None
3)           None
4)           None
                                                
* Unbound due to lack of technical feasibility.TN/S/O/ISL
Page 33
Additional Commitments by Iceland
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services underpinning the market access commitments by Iceland.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network and
service that
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a 
service.
A major supplier is a supplier, which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant market for basic telecommunications
services as a result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;(b) using information obtained from competitors with anti-competitive results;  and(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information whichare necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and to access services provided by another supplier.TN/S/O/ISL
Page 34
2.2 Interconnection to be ensured
Within the limits of permitted market access, interconnection with a major supplier will be
ensured at any technically feasible point in the network.  Such interconnection is provided1:
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its own like
services or for like services of non-affiliated service suppliers or for its subsidiaries or otheraffiliates
2,
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates that are transparent, reasonable, having regard to
economic feasibility, and sufficiently unbundled so that the supplier need not pay for networkcomponents or facilities that it does not require for the service to be provided;  and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:(a)  at any time or
(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection within
a reasonable period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded  as anti-competitive per se, provided they are
                                                
1 Suppliers of services or networks not generally available to the public, such as closed user groups, have
guaranteed rights to connect with the public telecommunications transport network or services on terms, conditions and rateswhich are non-discriminatory, transparent and cost-oriented.  Such terms, conditions and rates may, however, vary from the
terms, conditions and rates applicable to interconnection between public telecommunications networks or services.
2 Different terms, conditions and rates may be set in Iceland for operators in different market segments, on the
basis of non-discriminatory and transparent national licensing provisions, where such differences can be objectively justifiedbecause these services are not considered "like services".TN/S/O/ISL
Page 35
administered in a transparent, non-discriminatory and competitively neutral manner and are not more
burdensome than necessary for the kind of universal service defined by the Member.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence and
(b) the terms and conditions of  individual licences.The reasons for the denial of a licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services.  The decisions of and the procedures used by regulators shall beimpartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner.  The current state of allocated frequency bands will be made publicly available, but detailedidentification of frequencies allocated for specific government uses is not required.TN/S/O/ISL
Page 36
ATTACHMENT
NOTES TO MARITIME TRANSPORT
”Reasonable and non-discriminatory terms and conditions” means, for the purpose of multimodal
transport operations, the ability of the multimodal tran sport operator to arrange for the conveyance of its
merchandise on a timely basis, including priority over  other merchandise which has entered the port at a
later date. A ”multimodal transport operator” means the person on whose behalf the bill of
lading/multimodal transport document, or any othe r document evidencing a contract of multimodal
carriage of goods, is issued and who is responsible for the carriage of goods pursuant to the contract of
carriage.
1. ”Cabotage” is defined as maritime transport of  goods and passengers between ports in Iceland.
2. ”Other forms of commercial presence for th e supply of international maritime transport
services” means the ability for international maritime transport service suppliers of the other Members to
undertake locally all activities, which are necessary fo r the supply to their customers of a partially or
fully integrated transport service,  within which the maritime transport constitutes a substantial element.
(This commitment shall however not be construed as limiting in any manner the commitments
undertaken under the cross-border mode of delivery).
These activities include, but are not limited to:(a) marketing and sales of maritime transport and related services through direct contact with
customers, from quotation to invoicing, these se rvices being those operated or offered by the
service supplier itself or by service suppliers with which the service seller has established
standing business arrangements;
(b) the acquisition, on their own account or on behalf  of their customers (and the resale to their
customers) of any transport and related services , including inward transport services by any
mode, particularly inland waterways, road and rail, necessary for the supply of the integrated
service;
(c) the preparation of documentation concerning transport documents, customs documents, or other
documents related to the origin and character of the goods transported;
(d) the provision of business information by an y means, including computerised information
systems and electronic data interchange (sub ject to the provisions of the annex on
telecommunications);
(e) the setting of any business arrangements (includi ng participation in the stock of a company) and
the appointment of personnel recruited locally (o r, in the case of foreign personnel, subject to
the horizontal commitment on movement of pers onnel) with any locally established shipping
agency;
(f) acting on behalf of the companies, organising th e call of the ship or taking over cargoes when
required.TN/S/O/ISL
Page 37
3. ”Maritime cargo handling services” means activities exercised by stevedore companies,
including terminal operators, but not including the di rect activities of dockers, when this workforce is
organized independently of the stevedoring or te rminal operator companie s. The activities covered
include the organisation and supervision of:
- the loading/discharging of cargo to/from a ship;
- the lashing/unlashing of cargo;
- the reception/delivery and safekeeping of car goes before shipment or after discharge.
4. ”Customs clearance services” (alternatively ”customs house brokers´ services”) means activities
consisting in carrying out on behalf of another pa rty customs formalities concerning import, export or
through transport of cargoes, whether this service is the main activity of the service provider or a usual
complement of its main activity.
5. ”Container station and depot services” means ac tivities consisting in storing containers, whether
in port areas or inland, with a view to their stuffing/stripping, repairing, and making them available for
shipments.
6. ”Maritime agency services” means the activities consisting in representing, within a given
geographic area, as an agent the business interests of one or more shipping lines of shipping companies,
for the following purposes:
- marketing and sales of maritime transport and re lated services, from quotation to invoicing, and
issuance of bills of lading on behalf of the co mpanies; acquisition and resale of the necessary
related services, preparation of documenta tion, and provision of business information;
- acting on behalf of the companies organising the call of the ship or taking over cargoes when
required.
7. ”Freight forwarding services” means the ac tivity consisting of organising and monitoring
shipment operations on behalf of shippers, through the acquisition of transport and related services,
preparation of documentation and pr ovision of business information.
8. ”Other supporting and auxiliary transport services” means freight brokerage services; bill
auditing and freight rate information services; tr ansportation document preparation services; packing
and crating and unpacking and de-crating services; freight inspection, weighing and sampling services;
and freight receiving and acceptance services  (including local pick-up and delivery).
_______________TN/S/O/ISL
Page 38
ICELAND - LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistencywith Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
ALL SECTORS
Measures aimed at promoting
Nordic cooperation such as:
- guarantees and loans toinvestment projects and exports(The Nordic Investment Bank)- financial support to R&Dprojects (The Nordic Industrial
Fund)
- funding of feasibility studies forinternational projects (The NordicFund for Project Exports)- financial assistance to
companies* utilizing
environmental technology (TheNordic Environment FinanceCorporation).Denmark, Finland, Iceland,
Norway and Sweden
(*) Applies to East European
companies, which are co-
operating with a Nordiccompany.Indefinite To maintain and develop Nordic
Cooperation
Audiovisual services;
transmission of
audiovisual programmesMeasures that are adopted for the
implementation and in conformity
with the regulations such as the
EC Television BroadcastingDirective (no. 89/552) and whichdefine programmes of Europeanorigin in order to extend nationaltreatment to audiovisual
programmes meeting specific
origin criteriaParties to the Council of Europe
Convention on Transfrontier
Television or other European
countries parties to the EEA
Agreement with whom an
agreement may be concludedIndefinite The promotion of cultural identity
within the broadcasting sector in
Europe, as well as achievement of
certain linguistic policy objectivesTN/S/O/ISL
Page 39Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
Audiovisual services;production anddistribution ofcinematographic worksand television programmesMeasures that are adopted for the
implementation of benefits inconformity with such supportprogrammes as MEDIA andEURIMAGES to audiovisualprogrammes and suppliers to
these programmes, meeting
specific European origin criteriaEuropean countries Indefinite Preservation and promotion of the
regional identity of the countriesconcerned
Support programmes for theproduction and distribution ofcinematographic works andtelevision programmes (The
Nordic Film and TV Fund)Denmark, Finland, Norway and
SwedenIndefinite To maintain and develop Nordic
cooperation
Measures based upongovernment-to-governmentframework agreements, and
plurilateral agreements, on co-
production of audiovisual works,which confer National Treatmentto audiovisual works covered bythese agreements, in particular inrelation to distribution and access
to fundingAll countries with whom
cultural cooperation may bedesirable (agreements already
exist, or are being negotiated,
with the following countries:France, Canada)Indefinite (The promotion
of cultural links betweencountries cannot be time
bound)The aim of these agreements is to
promote cultural links between thecountries concerned
__________