WT/TPR/M/361  
29 November  2017 
(17-6496) Page: 1/38 
Trade Policy Review Body  
4 and 6 October 2017   
 
  TRADE POLICY REVIEW  
ICELAND  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F ICELAND  ................................ ..... 4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  12 
5  REPLIES BY THE REPRE SENTATIVE OF ICELAND  AND ADDITIONAL COMME NTS ........  32 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  37 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Iceland  are reproduced in document WT/TPR/M/ 361/Add.1  and will be available online 
at http://www.wto .org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/361 • Iceland  
 
- 2 - 
 
  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fifth Trade Policy Review of Iceland was held on 4 and 6 October 2017. The Chairperson, 
H.E. Mr. Juan Carlos Gonzalez (Colombia) welcomed the delegation of Iceland heade d by Director 
General Ms. Unnur Orradóttir Ramette , Directorate for Trade and Economic Affairs , Ministry for 
Foreign Affairs ; the rest of the delegation; and the discussant, Ambassador Mr. Alvaro Cedeño 
Molinari (Costa Rica).  
1.2.  The Chairperson also note d that the 4th review of Iceland had taken place in 2012 and 
normally the 5th review should have been six years later in 2018. However, Iceland had 
volunteered to have the 5th review one year in advance in order to help with the calendar of work 
for the Trade P olicy Review Body.  
1.3.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Iceland  was co ntained in document WT/TPR/G/361  
and that of the  WTO Secretariat in WT/TPR/S/361 . 
1.4.  Quest ions by the following delegations had been submitted in writing before the deadline: 
Indonesia; New Zealand; Colombia; Japan; EU; Canada; USA; Australia; China; Republic of 
Moldova; Switzerland; Argentina; Costa Rica; and Ecuador. The following delegations  submitted 
written questions after the deadline: Brazil; Peru; and Thailand . 
1.5.  In 2012, Members had appreciated the constructive role Iceland had played in the WTO and 
had commended it on its recovery from the financial crisis while noting that there had bee n several 
issues that still needed to be resolved relating to the banking sector. Members had praised Iceland 
for maintaining an open economy and trade regime in spite of the recession caused by the banking 
crisis. They had also encouraged Iceland to diver sify its export base in terms of products and 
markets to reduce its exposure to external shocks.  
1.6.  The Secretariat 's report noted  that GDP had grown 3.8% on average between 2012 and 2016 
highlighting the contribution of tourism related services to economic g rowth.  However, the report 
underscored  that the  export base remained  narrow as fish and fish products and aluminium and 
products thereof had accounted for over three quarters of the value of goods exports in 2016.  
1.7.  During the last TPR , Members had taken note of the policy choices undertaken by Iceland 
which included capital controls and fiscal consolidation and limiting the cost of bank restructuring 
on public finances. The  Secretariat 's report underlined  the stabilization and recovery of the 
banking sector and that several regulatory changes had been  introduced during the review period, 
including the establishment of new bodies to increase oversight. Capital controls had  been 
gradually lifted and practically all remaining restrictions had been  removed in Mar ch this year. 
Some of the questions submitted by Members for this TPR point ed to their interest in learning 
more about this process.  
1.8.  The Secretariat 's report highlighted  as a significant development Ice land's elimination of 
tariffs of  all non -agricultural  products with an end result being 90% of tariff lines duty free as  of 
1 January 2017, up from 70% in 2012. This trend had  been complemented by improved customs 
procedures.  
1.9.  With regards to agriculture, several delegations had noted during the TPR in 2012 the 
relatively high and increasing levels of support. Also , it had been  mentioned then that tariffs on 
agricultural goods had been  high and complex, with a large number of compound duties with both 
ad-valorem  and specific duties applied . The Secretariat 's report noted  that tariffs on some 
agricultural products had also been reduced during the review period, bringing down the average 
agriculture tariff from 8.3% in 2012 t o 4.6% in 2017. However, it added  that tariffs on several 
agriculture product groups, pa rticularly meat, dairy, plants and flowers remain ed high and often 
took the form of comp lex non -ad valorem  duties. The report also pointed  out that although a 
number of amendments had been  made to the laws relating to SPS measures, they remain ed 
strict. Ag riculture continue d to be an area of interest to M embers as reflected by their questions 
for this TPR, as some delegations sought more information on agricultural policy, including tariff 
quota administration, and SPS measures.  WT/TPR/M/361 • Iceland  
 
- 3 - 
 
  1.10.   As a member of the European  Economic Area, Iceland, along with Norway and Liechtenstein, 
are part of the single market of the European Union . The Secretariat 's report noted that Iceland 
had continued to deepen its links with the EU, including a 2015 bilateral agreement on trade in 
agricultural products.  
1.11.   It is also worth noting that the princip le of mutual recognition applies  througho ut the single 
market which means  that in nearly all cases a product put in the market of one EEA country may 
circulate freely throughout the Area.  
1.12.   As a member of EFTA, Iceland is party to its network of trade agreements and it had 
concluded a trade agreement with China on its own behalf during  the review period. Members had 
asked some questions about progress under these agreements.  
1.13.   Although Iceland was generally open to investment, restrictions remain ed on foreign 
investment in some areas as well as on cabotage. Some questions about these restrictions had 
been submitted to Iceland for this TPR.  
1.14.   Finally, during  the last review in 2012, many M embers  had encouraged Iceland to keep up 
with its notification obligations in particular in areas of agriculture domestic support, import 
licencing, SPS and TBT. According to the Secretariat , several notifications had been  made over the 
past few months including governm ent procurement, state -trading enterprises, and agriculture 
domestic support. However, in their advanced written questions , several Members had raised the 
issue of outstanding notifications in areas such as import licensing, preferential rules of origin, 
TBT, and SPS and looked forward to the response from Iceland.  
1.15.   This meeting would  be a good opportunity for Members to discuss in greater detail issues of 
interest to them and it would  also give an opportunity to reflect more deeply on issues of interest 
and relevance to the multilateral trading system. The Chairperson  looked forward to an active and 
fruitful exchange.  WT/TPR/M/361 • Iceland  
 
- 4 - 
 
  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F ICELAND (DIRECTOR GE NERAL 
MS. UNNUR ORRADÓTTIR  RAMETTE ) 
2.1.  It gives me great pleasure and honour  to join you here today and I really look forward to our 
exchange today and on Friday. Let me especially thank Ambassador Álvaro Cedeño Molinari of 
Costa Rica for accepting to take on the important role of discussant in our Trade Policy Review.  
2.2.  Allow me also t o thank the Secretariat for its thorough work and excellent collaboration in 
preparin g its report and this meeting. The Trade Policy Review is an important and very useful tool 
that increases transparency and enhances best practices among WTO Members as we ll as allowing  
for helpful self -inspection.  
2.3.  Let me state at the outset that international trade remains at the core of Iceland 's economic 
and for eign policy. As a small island S tate, Iceland is highly reliant on international trade and 
investment. In 2016,  Iceland had a trade to GDP ratio of 91.6%. Imports of goods and services 
amounted to 42.5% of GDP and the exports of goods and services reached 49.1% of GDP. One of 
the primary policy goals is to promote and strengthen the competitiveness of domestic busi nesses 
in world markets and to abolish barrier s to trade by extending Iceland 's multilateral and bilateral 
trade relations.  
2.4.  I would also like to thank Members for the 168 questions we received ahead of this meeting 
and their valuable contribution to this r eview. We have responded to all the questions in writing.  
2.5.  I will start my statement much in the same way as we did during our last Trade Policy Review 
in 2012, with the words that - once again - it might be an understatement to say that much has 
happened in Iceland since the last TPR took place. This time , however , the story is thankfully 
about recovery with the economy actually getting healthier than before the financial and the 
currency crises.  
2.6.  To put it simply, today,  Iceland is doing quite well.  
2.7.  Iceland was particula rly hard hit during the crisis.  In October 2008 , we suffered a dramatic 
banking crisis with 85 % of the banking sy stem collapsing within a week. This created significant 
turmoil in financial markets and in effect closed down the foreign exch ange market, which in turn 
caused a dramatic depreciation of the krona, and wiped out the Icelandic stock market.  Public debt 
rose from less than 30% of the GDP up to 100%.  Furthermore, policy rates rose to 18% and 
inflation to approximately 20%. On top of  this, registered unemployment rate went from 1% to 
almost 9% in less than a year.  
2.8.  In reaction to this, Iceland successfully implemented an economic policy program me, 
developed in cooperation with the IMF with additional financing from the other Nordic co untries,  
Poland and the Faroe Islands.  
2.9.  Today we are in a new era. The economy is growing strongly at more than 7 % last year. 
Before the financial crisis, the economic growth in Iceland was driven by domestic dema nd which 
was highly leveraged. This time, it  is driven by export, privat e consumption, and investment. 
Inflation has been close to, or below, the inflation target for more than three and a half years, the 
fiscal budget remains in surplus with low and falling public net debt. Capital controls introdu ced at 
the height of the 2008 crisis have been more or less fully removed, unemployment has reached its 
pre-crisis low, and the labo ur market remains very flexible and open to foreign labo ur with 
foreigners representing 10. 3% of the labo ur market. The net international investment position 
turned positive for the first time in 2016 and the financial system is strong. Capital and leverage 
ratios are high by any comparison. Liquidity is sound, and the private sector 's balance sheets have 
strengthened significa ntly since 2008. These good conditions were driven by positive external 
shocks, but were also achieved through prudent fiscal and monetary policies, a successful 
resolution of the estates of the old banks which failed in 2008, careful lifting of capital co ntrols, 
and a timely use of a capital flow management measure introduced a year ago.  
2.10.   As a small open economy relying on natural resources, Iceland is prone to large terms of 
trade shocks and boom and bust cycles. Iceland has an egalitarian society with hi gh levels of 
health and education spending. The poverty rate as well as income inequality is the lowest in the WT/TPR/M/361 • Iceland  
 
- 5 - 
 
  OECD and the gender equality is high. And looking ahead the economic growth is projected to 
remain fairly strong, thanks to continued vibrant tou rism activity and strong domestic demand – 
although we naturally expect the growth to slow somewhat and to have a softer landing than the 
last time Iceland enjoyed such high growth numbers.  
2.11.   There are , of course , risks to the outlook, but we believe that w e have mechanisms in place 
to mitigate the potential risks. Monetary policy is tight and bent on maintaining price stability over 
the medium term. The foreign exchange reserves are at a historically high level. A new organic 
budget law was introduced in 20 15 and now fiscal policy is stability oriented within a medium -term 
framework anchored in both numerical and procedural rules. The financial regulatory framework is 
strong, including prudential rules to limit the banks ' foreign currency risk, and the pensi on fund 
system is largely funded with pension fund assets equalling  about 160 % of GDP.  
Main Features of Ice land's Trade Policy  
2.12.   Now I would like to give a brief overv iew of Iceland 's trade policy.  
2.13.   As mentioned in our report , Iceland is a small open economy that largely owes its success to 
a well -functioning global free trade environment. Accordingly, moving towards more free trade and 
increased market access underpins our trade policy. We have taken bold steps on our side in this 
regard in times where the in ternational trading system feared tendencies towards protectionism. 
We have eliminated tariffs of 90% of the tariff lines on all but the most sensitive agricultural 
products. Furthermore, the recent bilateral agreement on agricultural products with the EU marks 
a further step towards liberalization in the trade of these sensitive products through sizeable quota 
openings.  
WTO  
2.14.   Iceland is a founding M ember of the WTO and a strong supporter of the multilateral trading 
system, including the full implementation  of existin g disciplines and commitments. Such a system 
is of par ticular importance for smaller M embers, like Iceland, and provides for a more level playing  
field in international trade.  
2.15.   Iceland continues to actively engage in the WTO Agenda. The Trade Fac ilitation Agreement 
was ratified in 2016 and necessary arrangements are being made to remove the last legal 
provision that formally allows export subsidies to become fully in line with the MC10 Nairobi 
outcome.  
2.16.   Iceland has also stepped up its efforts in f ulfilling different WTO obligations regarding 
notifications. On that front however, we must do better. We appreciate the number of questions 
from the membership on this issue and the comments made in the Secretariat 's report. Iceland 
will work with the Sec retariat over the coming months to rectify this situation. Enhanced 
transparency is a vital objective of the multilateral trading system and one that Iceland fully 
shares. In this spirit , we would also encourage that the notification procedures be made mor e user 
friendly and accessible, as this will support our efforts in complying with these commitments.  
2.17.   Iceland also remains committed to the objectives of the Doha Mandate and in the context of 
the review of the development policy we are engaged in interna tional consideration on how the 
new policy can best support international trade. Also, Iceland will continue to engage 
constructively in the current negotiations in aiming for a substantive outcome at MC11 and , in this 
context , strongly believes the member ship is reaching the momentum of being able to deliver on 
the issue of fisheries subsidies as the major outcome from MC11. Such an outcome is clearly in the 
interest of the whole membership.  
2.18.   And, on that no te, as noted in our Government r eport, whereas Ic eland strongly supports 
multilateral solutions, we realize that plurilateral agreements can be a powerful tool for trade 
opening and more liberalization and we have accordingly engaged in various plurilateral initiatives 
conducted on the margins of the WTO .  WT/TPR/M/361 • Iceland  
 
- 6 - 
 
  EFTA and FTAS  
2.19.   Iceland has continued through its membership of the European Free Trade Association 
(EFTA) to establish an extensive network of free trade agreements.  
2.20.   Since our last Trade Policy Review, in 2012, Iceland, with its EFTA partners, has si gned four 
free trade agreements  with Bosnia and Herzegovina, the Central American States of Costa Rica, 
Panama and Guatemala, the P hilippines and, finally, Georgia.  At present, the EFTA network 
consists of 27 free trade agreements covering 38 countries and s evera l declarations on 
cooperation.  
2.21.   Furthermore, a bilateral free trade agreement between Iceland and China was signed in 
2013 and entered into force on 1 July 2014.  
Gender equality and trade  
2.22.   Iceland puts strong emphasis on gender equality, both in Icela nd and internationally. The 
Foreign Service will soon appoint a special envoy at an Ambassador level to promote gender 
equality world -wide. We have for the first time included a chapter on Gender Equality in our report 
to the Trade Policy Review Body. We t hink this is an important addition, as trade can be an 
important tool to increase gender equality and women 's empowerment. Also, unlocking women 's 
economic potential obviously contributes to economic growth.  
2.23.   No field is gender neutral, trade being no exce ption. We must therefore analyse  how our 
trade policies affect women and men and promote inclusive trade that benefits all. It makes 
economic benefits for societies to make sure that both genders are on equal footing in trade both 
internationally and domes tically. We must seriously look at the current environment with gender 
lenses to see if there is anything we need to improve in this respect in our international trading 
system.  
2.24.   The trade policy review is , in our view , well fitted for looking at the gender  dimension of 
trade and how trade policies affect wom en and men. We encourage other M embers to also include 
a chapter about gender equality in their reports and thank the European Union for their question 
about gender and trade that we look forward to addr essing later in the review.  
2.25.   Finally, I would like to touch upon Iceland 's vision for the near future . 
2.26.   Iceland has experienced a boom in tourism, with tourist numbers growing almost 
exponentially since the eruption of Eyjafjallajökull in 2010. The number o f foreign visitors 
increased by almost 40% in 2016, when 1.8 million tourists visited Iceland. The growth rate this 
year is almost 30% so far and we expect up to 2.3 million foreign visitors. It is questionable 
whether this growth rate is sustainable in th e long run. It has brought a number of challenges with 
respect of the nature and the overall infrastructure in Iceland.  
2.27.   This strong inflow of tourists has also led to appreciation of the krona last 2 years followed 
by a decline in competitiveness of the e xport sector, which has resulted in a more moderate 
growth in tourism.  
2.28.   The lifting of capital controls earlier this year was , however , crucial against the 
strengthening of the krona. Other actions taken are plans of moving most of the tourist related 
services from the reduced VAT rate of 11% to the standard VAT rate of 22.5% at the end of next 
year making space for increased investment in infrastructure and preserving nature.  
2.29.   Tourism has in a few years period become one of the main pillars of the economy and is 
now close to 40% of total exports reven ues. Exports of services are 54. 6% of all exports. Fisheries 
and alumin ium sum up around 38% of the export values and the rest derives from other sectors 
including the international sector which is defined as i ndustries in which businesses are mobile, 
meaning they have the possibility of relocating their operations, as they do not rely on resources 
specific to Iceland. Fisheries and alumin ium sectors have been doing quite well with favo urable 
terms of trade, - export prices rose by 17% relative to trading partners in two -year period from 
2014 to 2016.  WT/TPR/M/361 • Iceland  
 
- 7 - 
 
  2.30.   The fishing industry has long been viewed as the backbone of the Icelandic economy and 
today accounts for 21% of Iceland 's export revenues. The cornerstone of our f isheries policy is the 
sustainable utili zation of our marine resources.  Today, after years of adherence to a sustainable 
fisheries policy , our fish stocks are strong. The cod stock has not been stronger since systematic 
measurements began in 1985 and other  key commercial fish species are  also close to historic 
highs.  
2.31.   After fish, alumin ium is Iceland 's second most  important merchandise export. It accounted 
for approximately 15% of Iceland 's total exports in 2016. Iceland is now one of the ten largest 
alumin ium producers in the world.  
2.32.   As for agriculture, it remains central to Iceland 's food security, sustainability and rural 
viability. Conditions for agriculture in Iceland are , however , constrained by many external and 
internal factors, inter alia , the country 's remote location just below the Arctic circle, challenging 
climate, difficult topography, low population density, long dista nces and the small home market.  
These challenges adversely affect the international price and cost -competitiveness of the 
agricult ural sector, which is dependent on both direct support schem es and market support 
measures.  
2.33.   Due to the specific circumstances, it is important that the agricultural sector in Iceland be 
given a reasonable amount of time to adjust to a changing global envir onment fo r trade in 
agricultural goods. Concerns like food security and rural development must be taken into account 
in all negotiations regarding agriculture.  
2.34.   Iceland is a resource economy with limited growth pot ential in the relevant sectors.  
2.35.   One of the  main challenges and opportunities at the same time is to promote the 
international sector in Iceland, which is relatively small in comparison with that sector in our 
trading countries. Capital controls have been one of the obstacles to growth in this sect or. Lifting 
of capital controls was therefore an important milestone as well as tax incentives we have already 
implemented for the R&D sector. Still , there are several other challenges we face , for example in 
the education system and in the business enviro nment that we have to solve to make it possible 
for the i nternational sector to blossom.  
Closing rem arks 
2.36.   Through the roller coaster ride Iceland has been on during the last decade, a few things 
have remained constant, including the noti on of openness and c ooperation.  Through these 
challenging times, we sought to uphold our WTO commitments. These were never in question, any 
more than ot her international commitments. Iceland does best in close economic and trade 
cooperation with its partners, and is committed  to advancing the work of the  World Trade 
Organization. Thank you . WT/TPR/M/361 • Iceland  
 
- 8 - 
 
  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Distinguished government officials visiting us here today from Iceland. Greetings to Ms Unnur 
Orradóttir Ramette, head of the d elegation and to Ambassador Högni  S. Kristjánsson  and his 
delegation here in Geneva.  
3.2.  I believe this is a great opportunity for all WTO Members to learn about one of the most 
market -friendly and open economies in the WTO. Iceland 's history, like a character from one of its 
world known saga s, comprises myth; long, cold winters; intense volc anic activity; majestic 
geysers;  and breath -taking  landscapes. This blend of outstanding elements and the impact of 
extreme weather conditions, have modelled the country 's society and econom y and the trait s of its 
people.  
3.3.  Resembling their climate, Icelanders have a strong mindset, are hard workers and 
straightforward. Perhaps also because of the weather, they are flexible and live in the present. 
They hold a strong sense of community and solidarity, and che rish the feeling of belonging. From 
the very beginning of their history, Icelanders have strived for good governance, law-making  and 
justice, being the best example  of the world 's oldest running Parliament -the Althing - founded over 
1000 years ago.  
3.4.  Being a  seafaring nation, for centuries men navigated the oceans for long periods of time, 
while women took charge of their households and the economy. Not in vain Iceland enjoys today a 
remarkable posi tion in gender equality and has  established the national obje ctive to close the 
gender pay gap by 2022.  
3.5.  Iceland could be, if not the best example, certainly one of the best illustrations about how to 
incorporate women at all levels in a society to the point where the culture itself preserves such 
values as gender e quality. Certainly, there is still much way to go forward. Although Iceland has 
been, according to the World Economic Forum, for eight consecutive years the country with the 
narrowest gender gap in terms of payments, the difference is still at 18% in avera ge. This would 
be equivalent to saying that women work all year but don 't get paid past October 27th every year. 
That is the strongest motivation behind the pledge to legally eradicate the gender pay gap by 
2022. This effort makes Iceland stand out as a le ader, one that should be followed at a critical 
juncture where it is easier and more evident to see how other nations around the world are doing 
in this regard.  
3.6.  Today , Iceland is an advanced economy, one that enjoys some of the highest standards of 
living  in the world. To achieve this kind of result in the face of such enormous challenges, Iceland 
has consistently managed to get a "broad political consensus on the key essentials of a market 
economy and the preservation of the welfare state ". Such balance r equires strong consensus 
throughout the democratic institutions, something not usually easy or fast.  
3.7.  In 2008, Iceland 's spirit once again showed its resilience and adaptability to new and difficult 
circumstances as the country engaged in a reform process t hat allowed them to move faster from 
the negative effects of the global crisis. Today, with a growth rate that peaked at 7.2% in 2016 
Iceland is currently the OECD 's fastest growing economy . According to the Secretariat r eport, GDP 
per capita rose from aro und US$44,000 in 2012 to nearly US$ 60,000 in 2016 and unemployment 
rate halved from 6% to 3% over the same period. All this while performing extr emely well in social 
indicators,  with high living standards, low poverty, high inclusiveness and one of the mos t 
sustainable pension systems. According to the OECD Better Life Index, Iceland ranks at the top in 
jobs and earnings, and above the average in social connections, health status, environmental 
quality, social security and education and skills.  
3.8.  One of the most impressive developments during the last years is the stabilization and 
recovery of the banking system and its new focus on the national economy. In addition, the 
settlement of the failed bank 's states resulted in a one -off windfall gain of around 17% of the GDP 
and has largely contributed to the fiscal surplus of over 17% of GDP in 2016. This surplus is to be WT/TPR/M/361 • Iceland  
 
- 9 - 
 
  used for public debt reduction, and lead to a more manageable general government gross debt of 
around 50% of the GDP.1 
3.9.  Trade plays an essential r ole in Iceland 's development strategy; and the country is an 
example of consistent and positive support to the multilateral trading system. Iceland has an 
active role in negotiations at the WTO, and is part of plurilateral initiatives in diverse areas such  as 
the expansion of the Information Technology Agreement, fisheries subsidies, the liberalization of 
trade in Services and i n trade in environmental goods.  
3.10.   According to the r eport of the Secretariat, Iceland is a very open economy with trade in 
goods and services being equivalent to over 90% of the GDP, and the elimination of all tariffs on 
non-agricultural goods in 2016 shows its commitment to support a free trade environment.  
3.11.   In contrast, even though agriculture represents a small part of the GDP and th e 
employment; the sector remains highly protected and subsidized, both in terms of high and 
complex tariffs - including non -ad valorem  duties. Iceland maintains a 95% binding coverage of its 
tariff lines in the WTO; the remaining 5% of unbound lines include  certain fish, petroleum gas, 
fertilizer, tires, paper, books, wool, yarn, motor vehicles, and air plane products. These 
non-agricultural goods currently enjoy duty free access, something that calls for reflection on 
further improvements in Iceland 's trade policy at the WTO.  
3.12.   Another area for improvement relates to the fulfilment  of notification obliga tions. A ccording 
to the Secretariat report, several amendments to the laws regarding SPS measures have been 
made during the review period. These regulations re main strict and are justified on the grounds 
that Iceland 's domestic animals are highly susceptible to exotic pests and disease. However, 
Iceland submitted only two notifications to the SPS Committee and none on TBT, import licensing 
or preferential rules of origin during the period 2012 -2016. The Secretariat report also indicates 
that Iceland 's current regulation on customs evaluation has yet to be notified to the WTO. Also, as 
of March 2017, Iceland 's information at the Integrated Data Base on tariff and trade has been 
updated until 2014. Transparency is one of the pillars of the WTO and I am sure that Iceland will 
submit the outstanding notifications very soon for the benefit of all interested Members.  
3.13.   One of the challenges identified in the report of the  Secretariat is the need to diversify the 
exports matrix, both in terms of markets and products. In terms of markets, Iceland has 
negotiated, in association with its EFTA partners or on its own, several trade agreements, including 
one with China and with s ome Central American countries. It would be interesting to know more 
about the effect that these agreements - in conjunction with the el imination of all tariffs on 
non-agricultural goods in 2016  -had in the creation of new opportunities for Icelandic expor ters 
and if they have contributed to the improvement of their competitiveness. Having said that, the EU 
remains the main trading partner and represents 73% and 52.5% of exports and imports of 
merchandises, respectively. As the United Kingdom is one of its main partners within the EU, 
Iceland will have to manage carefully the uncertainty related to the Brexit process.  
3.14.   In terms of products, the export matrix remains highly concentrated in a luminum products 
and fishing, both accounting for 75% of all exports of goods.  
3.15.   The fishing industry continues to play a fundamental role in Iceland 's economy. In 2015, 
fish products represented 43% of total exports of goods, and fishing and fish processing activities 
represented 8.1% of the GDP. The fishing industry is also  a major source of employment, 
accounting for more than 9.000 jobs in 2014.  
3.16.   Iceland 's fisheries policies deserve some remarks, especially in times where fisheries 
subsidies are currently being discussed at the WTO and might represent a possible outcome fo r the 
upcoming WTO Ministerial Conference in Buenos Aires. Let us recall that current WTO negotiations 
in fisheries subsidies are aimed at reverting the negative effects that subsidies related to 
overfishing and overcapacity are having on the sustainabilit y of our marine resources.  
3.17.   In this regard, Iceland 's fisheries policies can be used as an example. They are centered on 
a model based on individual tradable quotas (ITQs) to prevent overfishing and achieve  
                                                
1 Secretariat 's report, paragraph 1.16 . WT/TPR/M/361 • Iceland  
 
- 10 - 
 
  sustainability. The system provides fishermen with  incentives that align long -term expectations of 
profit while encouraging the conservation of stocks. It represents a clear, open and simple 
market -based approach  that includes sustainability and scientifically based assessments; thus 
providing an adequate  balance between economic benefits and sustainable development.  
3.18.   As an article in The Economist cleverly points: the solution for other countries "lies in a 
policy with Icelandic features: transferable quotas for all commercial species, each with a total 
allowable catch, strict enforcement of the rules and open access to all relevant information about 
landings… ".2 However, the system is not perfect and faces challenges and opportunities for 
improvement.  
3.19.   The OECD has flagged that Iceland 's challenge now is to  ensure that the wealth generated 
by the fisheries sector is fairly distributed and that future growth is inclusive. Another aspect that 
may be considered and that has been included in this and previous TPRs, is the limitation on 
foreign ownership of fishi ng operations and primary fish processing activities. Given the leadership 
shown by Iceland on this topic, it deserves to evaluate if allowing greater foreign participation 
could contribute to the diffusion of their model by helping to export it to the res t of the world.  
3.20.   We can also derive interesting lessons from the challenges that Iceland faces today in 
balancing their energy, green growth and climate change strategies with the management of trade 
policies. Both the expansion of tourism and the developm ent of the aluminum industry are closely 
related to the availability of Iceland 's natural res ources and assets. They could be used as 
examples on how a country may take advantage of its natural resources to boost economic 
development.  
3.21.   Nearly all Iceland 's electricity and heat are generated from hydro and geothermal sources. 
The abundance  of cheap renewable energy has allowed the country to attract energy -intensive 
industries, in particular aluminum smelting. Despite the fall in prices, aluminum and aluminum  
related products acco unted for nearly 36% of Iceland 's total exports of goods in 2016.3 
3.22.   Tourism and particularly nature -based tourism also represents an important source of 
economic growth. The industry is booming and is now Iceland 's largest export secto r, overtaking 
fisheries and aluminum as the largest export sector and being responsible for nearly 40% of 
Iceland 's export receipts of goods and services in 2016. Over 2 million tourists visit the country 
every year, more than seven  times its population an d now repre sent nearly 10% of the country 's 
GDP. The spectacular growth in tourist numbers has provided new jobs (employment in tourism 
rose from 15.700 in 2010 to 24.200 in 2016), boosted tax revenues and attracted currency 
inflows.  
3.23.   If these developments  are in general terms good news for its economy, new challenges 
have emerged as consequence of the rapid growth of the tourism sector and the rising number of 
visitors. Notably, affordability has become an issue in the housing market as supply catches up 
with demand. The sheer number of tourists is putting pressure on the environment and on the 
infrastructure. And the growing tourist numbers has also contributed to strengthening the króna , 
which has appreciated, creating difficulties for other international  exposed sectors .4 It would be 
interesting to k now the plans of the Icelandic G overnment to deal with these challenges and how 
are they being taken into the development plans.  
3.24.   The development of both activities could be also mutually exclusive. Many areas with 
potential for hydropower or geothermal development are sites of great beauty and unique 
biodiversity, and they are often major tourist attractions. Repeated conflicts over the 
environmental and social impacts of power capacity ex pansion prompted the I celandic G overnment 
to develop in 2013 a Master Plan for Hydro and Geothermal Energy Resou rces. It is based on  
                                                
2 The Economist. Special report: the sea. An Icelandic Success, a model to catch and keep fish. 
December 2008.  
3 Iceland Trade Policy Review (2017). Report by the  WTO Secretariat (WT/TPR/S/361), Chart 1.1, 
page 20. 
4 OECD Economic Surveys. Iceland. June 2017. Page 16.  WT/TPR/M/361 • Iceland  
 
- 11 - 
 
  scientific analysis and wide public participation and provides, as the OECD has described it as "a 
valuable model for building consensu s on compl ex energy -environment ".5  
3.25.   Regarding Iceland 's green growth policies, we take note of their efforts towards transitioning 
to a green economy. In 2011, Iceland 's Parliament released a report containing 50 proposals in 
this regard, and has introduced several environmentally related taxes, including excise duties on 
diesel, carbon taxes, and vehicle taxes based on carbon dioxide emissions.  
3.26.   Joining the European Union Emissions Trading System is al so relevant considering Iceland 's 
climate change commitme nts unde r the Paris Agreement. According to Iceland 's National 
Determined Contributions (NDCs) submitted to the UNFCCC, Iceland aims to be part of a collective 
delivery by European countries to reach a target of 40% reduction of greenhouse gas emissions 
(GHE) by  2030 compared to 1990 levels. A precise commitment for Iceland within such collective 
delivery is yet to be determined and dependent on an agreement with the European Union and 
other countries , but the participation in the EU Emissions Trading System would be key in that 
regard, consider ing that almost half of Iceland 's emissions are regulated through this scheme. We 
look forward to Iceland 's additional efforts regarding their green growth and climate change 
policies.  
3.27.   To conclude this intervention, it is fro m this rich potpourri that Iceland has become a global 
benchmark. Iceland experimented important advances in its economy after World War II, which 
allowed the country to enjoy one of the highest standards of living in the world. But in addition to 
this, th e resilience of its people has been put to the test, and the population learnt to adjust to the 
harsh climate, shaping their economy and trade behaviour  by strengthening the fishing industry 
and modernizing their agricultural policies. So in the end, the I celandic national spirit can be 
thought of as a mirror of its own landscape, full of variations in shape, colours  and nuance. Thank 
you. 
                                                
5 OECD  (2014),  OECD Environmental Performance Reviews: Iceland 2014 , OECD Publishing, Paris.  
http://dx.doi.org/10.1787/9789264214200 -en. WT/TPR/M/361 • Iceland  
 
- 12 - 
 
  4  STATEMENTS BY MEMBER S 
INDONESIA  
4.1.  Let me start by saying  that I am a big fan of natural wonders that Iceland has to offe r. My 
personal trip a few months ago, in search of serious waterfalls, geysers and hot pools, as well as 
to experience first -hand the evening symphony of aurora borealis – that trip remains yet to be 
beaten by my other quests for natural wonders.  
4.2.  But, on a  more serious note, Indonesia applauds Iceland for eliminating tariffs on all 
non-agricultural products, and for the continued efforts in improving customs procedures. 
Indonesia appreciates this development for the large majority of exports we do with Icel and 
consists of non -agricultural products.  
4.3.  We also compliment Iceland for its success in removing all temporary restrictions on certain 
types of cross -border capital transfers and foreign exchange transactions – which should pave the 
way for an increased t rade and investment activities.  
4.4.  For many years, Indonesia notes with positivity that as a small open -economy Iceland has 
played a significant role in the multilateral trading system. Currently, both of us, along with 
Norway and Switzerland, are in the nego tiation to enhance our trade relationship through the 
Indonesia -EFTA Comprehensive Economic Partnership Agreement (IE -CEPA). Indonesia looks 
forward to advancing achievements to our work in this partnership.  
4.5.  Iceland is an important partner of Indonesia. In  the last five years, in the period 2012 to 
2016, Iceland and Indonesia have been enjoying a good trading relationship. Indonesian exports 
value to Iceland has been experiencing a good average yearly growth of 56.2%, making Iceland as 
third growing export partner after Liechtenstein and Switzerland amongst the EFTA economies. On 
the other hand, imports value from Iceland has been experiencing a good average yearly growth 
of 52.8%.  
4.6.  And amongst EFTA economies, Indonesian -Iceland bilateral trade value, between  2012 and 
2016 experienced an average yearly growth of 36.9% - which qualifies Iceland as Indonesia 's third 
growing trade par tner, after Liechtenstein and Switzerland, amongst the EFTA economies. To 
Indonesia, Iceland remains untapped for Indonesian export s, and there remain opportunities to 
increase the scope of our trade relationship. And with advancement in the IE -CEPA negotiations, 
we foresee our economic relations to reach its true potential – beyond the current trade 
performance.  
4.7.  Despite Iceland 's success in reducing tariffs on some agricultural products, tariffs applied on 
several agricultural product groups remain high. Diversifying our exports into agricultural products 
is one of the ways that Indonesia wishes to embark on, in optimizing our good bi lateral trade 
relations.  
4.8.  Additionally, Indonesia also has concerns on market access for palm oil products. Indonesia is 
the largest palm oil supplier for the world. We encourage that Iceland takes into account the 
importance of palm oil to Indonesia, and a cknowledges the efforts of the Government of Indonesia 
in implementing and promoting sustainable palm oil.  
4.9.  We have submitted a number of written questions related to our concerns, and we thank 
Iceland for the responses provided to these advanced questions.  We look forward to further 
clarification to these answers once we receive feedbacks from Jakarta.  
NEW  ZEALAND  
4.10.   While Iceland and New Zealand may have a modest bilateral trading relationship, we have a 
very positive overall relationship - especially here in  the WTO. It is in this context that we welcome 
this fifth Review as an opportunity to engage more deeply on trade and investment policy issues, 
and to learn from each other as small, open island economies that depend on external trade for 
our quality of l ife. WT/TPR/M/361 • Iceland  
 
- 13 - 
 
  4.11.   I must start by expressing our appreciation for Iceland 's strong support for a fair, open and 
rules-based multilateral tra ding system, based on the WTO. Like Iceland, New Zealand sees this 
system as essential to our  collective future prosperity. We al so share Iceland 's commitment to 
making sure that the benefits of trade are both sustainable and shared fairly among all members 
of our societies, including women. We must also express specific appreciation for Iceland 's 
leadership in pursuing fisheries su bsidies reform here in the WTO as we both look forward to MC11 
where we are working to implement SDG Target 14.6.   
4.12.   New Zealand is pleased to see Iceland 's strong recovery from the global financial crisis, 
helped by reforms to encourage trade and investmen t, simplify taxation, manage financial sector 
risk, and  to impro ve public financial management.  The lifting of almost all of the capital controls 
imposed in the wake of the global financial crisis confirms the success of these policies.  
4.13.   Iceland is not res ting on its laurels however.  We see a range of positive efforts to further 
open its economy by strengthening its network of free trade agreements, and to increase 
competitiveness, including through measures to prevent the erosion of the tax base. Iceland ha s 
been actively growing its economy through the tourism industry and I can attest to it being well 
worth a visit.  
4.14.   The removal of Iceland 's tariffs on non -agricultural goods since the last Trade Policy Review, 
and the reductions in tariffs for some agricult ural goods are all positive examples of Iceland 's 
reform. We would encourage Iceland to deepen and extend these efforts. For example, there 
appears to be lots of room to make Iceland 's agricultural sector more responsive to market forces, 
including through  phasing out of support to dairy and cattle farmers and the 2019 review o f the 
production quota system. We have posed questions in these areas so look forward to 
understanding more.  
4.15.   We see a somewhat mixed picture on Iceland 's WTO notification record. The Secretariat 
report highlights areas where Iceland has been falling short of its notification obligations, though 
we see and welcome  recent steps to correct this. We thank Iceland for these notifications and 
encourage it to maintain timely and complete noti fications across the range of its obligations. I 
welcome Iceland 's commitment on this expressed here this morning.  
4.16.   In closing, we commend Iceland for its forward looking and open trade policies which have 
helped it recover from difficult economic ti mes. The economy is back on track and furt her reforms 
are being pursued. We look forward to learning more this week and continuing to work with 
Iceland on multilateral and plurilateral trade issues across the full range of our mutual interests.  
COLOMBIA  
4.17.   First an d foremost, we must congratulate the representatives of the Icelandic Government 
on the arduous but fruitful work done to stave off the financial crisis of 2008. In 2016, after 
several  years of a current account in deficit, it achieved a surplus of 8% of G DP, together with an 
average growth rate of 3.8% of GDP maintained over a period of four years, two indicators which 
denote a complete recovery from the crisis.  
4.18.   This performance is particularly admirable given the degree of openness of the Icelandic 
econom y, with trade in goods and services accounting for 90% of GDP in 2016, the elimination of 
all tariffs on non -agricultural products and a substantial reduction in the tariffs applied to 
agricultural products.  
4.19.   The openness of its economy has led Iceland to p lay a constructive role in the multilateral 
trading system. It was a founding Member of the WTO and participated in the negotiations on 
Telecommunications and Financial Services and the Information Technology Agreement. Moreover, 
during the Doha Round it h as made contributions in such areas as services, intellectual property, 
fishing subsidies, and liberalization of the trade in fish and fish products. Iceland has already 
ratified the Trade Facilitation Agreement and we are sure that it will soon make the l egislative 
changes necessary for its implementation.  
4.20.   The foreign investment regime is another aspect on which the Secretariat report places 
special emphasis. This is an area in which Iceland has made substantial progress having eliminated WT/TPR/M/361 • Iceland  
 
- 14 - 
 
  the exchange rest rictions resulting from the financial crisis. There remains the challenge of 
disposing of certain restrictions relating to the public ownership of enterprises, property ownership 
and company/business establishment, as well as that of improving the transpar ency and operation 
of the Icelandic investment authorization system, although the Secretariat also points out that the 
percentage of approvals exceeds 93% of applications.  
4.21.   Where trade is concerned, Iceland maintains an export structure sensitive to the vol atility of 
the international market, consisting mainly of fish, fish products, and aluminium and its products. 
This volatility was in evidence during 2014 when a trade deficit was triggered by a fall in 
aluminium prices. The Secretariat report points out t hat the national receipts did not suffer, thanks 
to a surplus in trade in services. Nevertheless, attention should be drawn to the dependency that 
could arise from concentration, since 80% of national income is generated in the "transport and 
travel" subse ctors.  
4.22.   An aspect of special interest for Colombia is the changes being made in the customs regime. 
We see it as a sensible move that one of the objectives of trade policy should be the 
"Customs  2020" plan focused on promoting trust, cooperation and progres s in all areas of 
customs. We consider this to be an appropriate response to the difficulties noted in the report with 
respect to the high border compliance costs for imports and exports, a challenge which we believe 
requires special attention since it cor responds to a fall in customs revenue, which declined 
from 0.3% of GDP in 2014 to 0.21% of GDP in 2016 due to the elimination of tariffs on 
non-agricultural products.  
4.23.   I would like to conclude by stressing Colombia's interest in developing economic relation s 
with Iceland, a trading partner that we regard as strategic for our agricultural and 
industrial  interests and with which we have a trade agreement (within the context of EFTA) in 
force since 2011. At present, trade is at a very low level and, in aggregat e, not more than 
US$3  million. Moreover, trade has historically been concentrated in primary goods, with Colombian 
exports being limited to coffee, while Icelandic exports consist mainly of fish products.  
4.24.   We wish Iceland the utmost success with its Trade P olicy Review and urge 
Ambassador  Kristjánsson and his Mission to continue playing an active role within the WTO with a 
view to further improving the operation of the multilateral trading system.  
JAPAN  
4.25.   Although Iceland and Japan are geographically far apart , we feel that there are some 
similarities between us. For example, we are both developed countries based on democracy, both 
being blessed with fishery resources and being volcanic islands, and so forth.  
4.26.   The fact that we have some similarities also implie s that we face similar challenges. Iceland 
and Japan should share their experiences with each other and further develop cooperation that we 
have maintained so far.  
4.27.   Needless to say, Iceland was one of the countries severely affected by the 2008 financial 
crisis. Currently, Japan is aware that Iceland has been achieving sound GDP growth since then; 
mainly driven by tourism -related sector. We believe that the recovery from the financial crisis will 
give great suggestions to the economic, trade and monetary pol icies of other countries.  
4.28.   On the other hand, there are still risks to sustainable growth. In the short term, the 
potential overheating of the economy as well as the uncertainty surrounding the aftermath of 
Brexit can be problematic. Turning to the long -term, the limited export items will mean its 
economy will remain vulnerable to external shocks.  
4.29.   Japan encourages Iceland, in order to mitigate the risks, to adopt the right policy mix, 
including diversifying industries and trading partners.  
4.30.   Now, I would like to touch upon the specific points that Japan is interested in regarding the 
Icelandic economy.  WT/TPR/M/361 • Iceland  
 
- 15 - 
 
  4.31.   First of all, Japan welcomes the announcement that, in March this year, most of the capital 
regulations that had been adopted at the economic crisis has been abo lished. We know that some 
regulations still remain and we will keep a close eye on further development in this issue.  
4.32.   Second is about tourism industry. The proportion of tourism and tourism -related industry to 
the Icelandic economy is huge. Currently, it a ccounts for about 10% of GDP and about 40% of 
export receipts. In 2017, 2.3 million tourists are expected. Taking into account its small population 
of 0.34 million, the number of tourists is enormous.  
4.33.   According to several recently published articles, Icela nd appears to have an ambivalent 
feeling against increasing tourists, as is similar in other tourist destinations including Japan.  
4.34.   It would be great if Iceland shares their efforts to minimize the negative impact of tourism 
on its nature and society and s till have tourists enjoy its nature and culture.  
4.35.   The third is about gender. Iceland is well -known as a country where gender efforts are 
progressing. It ranked first in the World Economic Forum 's latest report, "The Global Gender Gap 
Report ". Japan would li ke to commend Iceland 's efforts so far and learn from Iceland 's case.  
4.36.   In conclusion, I would like to express our strong wish to continue cooperation between 
Iceland and Japan.  
4.37.   We wish Iceland a successful and productive TPR.  
EUROPEAN  UNION  
4.38.   The EU would li ke to start by praising Iceland for the strong performance of its economy. 
During the period under review, Iceland has enjoyed robust economic growth, which has peaked at 
7.2% in GDP growth in 2016. The EU acknowledges the huge efforts undertaken by Icelan d for 
recovering from its severe financial crisis, thanks to the good combination of solid economic 
fundamentals and a number of significant changes to its economic and trade policy. Today, Iceland 
is regularly rated among the top countries in the world as  regards economic well -being and living 
standards. It is a text -book example of the vital importance of external trade for a small open 
economy.  
4.39.   A word  on our bilateral relationship. The EU is by far Iceland 's most important trade partner. 
EU-Iceland trad e in goods amounted to € 6,573 million in 2016. Services exchanged between the 
EU and Iceland are on an increasing path since 2010 and amounted to € 2,573 million in 2015.  
4.40.   Trade relations between the EU and Iceland are covered by the free trade agreement 
between Iceland and the EEC from 1972 and the Agreement on the European Economic Area (EEA) 
Agreement which entered into force in 1994. The EEA Agreement extends the EU Single Market, 
with free movement of goods, services, capital and workers and with a few  exceptions notably on 
agricultural products and fisheries. As a Member of the EEA, many of Iceland 's trade and 
trade -related policies and laws are closely related to those of the European Union.  
4.41.   Iceland is strongly advocating free trade as also demonstra ted by its recent decision to 
remove custom duties on imports of industrial products.  
4.42.   I would like to use this intervention to praise Iceland for its support for the multilateral 
trading system and its active participation in the works of this Organisatio n. In particular, I 
commend Iceland 's engagement in the negotiations on the prohibition of certain fisheries subsidies 
that aim at implementing SDG 14.6. Iceland is participating in discussions with other proponents 
in view of concluding a multilateral agr eement on this issue at the forthcoming 11th Ministerial 
Conference in Buenos Aires.  
4.43.   As stated on the occasion of the recent EU TPR, the EU attaches great importance to the 
issue of gender equality and women 's empowerment. In this respect, the EU wishes to  compliment 
Iceland for its active role on gender in trade. The EU in particular supports Iceland 's proposal to 
use the Trade Policy Review mechanism to voluntarily report on their efforts to promote a more 
gender sensitive approach to trade policy issues at the domestic level.  WT/TPR/M/361 • Iceland  
 
- 16 - 
 
  4.44.   Mr Chairman, we are very thankful for the good reports prepared by Iceland and the WTO 
Secretariat. Both reports gave a clear picture of the numerous reforms carried out by Iceland 
during the period under review.  
4.45.   Within this genera l overall positive context, the EU nevertheless considers that in certain 
areas there is still room for improvement. This is particularly true for SPS matters as Iceland 
continues restrictive import policies on certain products, among others, on meat and m ilk 
products, raw eggs and unprocessed milk.  
4.46.   The EU would like to hear from Iceland about prospects for further opening up its markets 
to foreign enterprises in the fisheries sector.  
4.47.   Lastly, while the EU fully understands that capital control measures wer e introduced to 
ensure economic stability and that those measures have played a decisive role in the recovery 
process, it is important to underline that such controls should be temporary and not last longer 
than needed.  
4.48.   On behalf of the EU, I wish Iceland  a very productive and successful review.  
CANADA  
4.49.   Canada appreciates the opportunity to participate in the WTO 's trade policy review of 
Iceland. Canada welcomes a collaborative approach to examine key themes and questions with a 
view to enable practical exc hanges of information on our bilateral commercial relations with 
Iceland.  
4.50.   Canada recognizes Iceland 's commitment to the multilateral trading system and to ongoing 
liberalization efforts. For example, Iceland is actively involved in negotiations, including the 
Fisheries Subsidy negotiations at the multil ateral and plurilateral levels.  It has also been active in 
the negotiations of a Trade in Services Agreement and an Environmental Goods Agreement. We 
thank Iceland for its positive contribution to all these n egotiations and we hope that the latter two 
initiatives will resume in the near future.  Like Canada, Iceland is a trading nation largely 
dependent on foreign markets for its economic prosperity.   
4.51.   Iceland 's economy is growing thanks to key sectors and we e ncourage Iceland to c ontinue 
to monitor it closely. As stated by the IMF, Iceland is stepping into a new era of financial openness 
with the lifting of capital controls in March of this year. Boosted by tourism and the adoption of 
new banking regulations, t he economy is on a firmer footing than the last time it enjoyed similar 
growth rates. Growth rates reached an all -time high of 7.20 % in the second quarter of 1998 
Current growth rates - around 7 % last year - are driven by tourism, private consumption, and 
investment, not by financial leverage which uses debt to acquire additional assets. The large inflow 
of foreign currencies and the persistence of capital controls have also contributed to substantial 
krona appreciation. Since the signing of the open skies agreement between Canada and Iceland 
which came into effect in 2013, Icelandic and Canadian airlines have increased their flights (from 
six flights per week in the summer of 2013 to 48 flights per week in the summer of 2017). While 
Iceland 's economy is doi ng well, we are aware that there are clear and present concerns of 
overheating, as pointed out by Iceland 's Prime Minister and Finance Minister.  
4.52.   Beyond our shared Arctic interests in Artic issues, Canada and Iceland enjoy a valuable 
bilateral trade relati onship. Canada -Iceland bilateral trade has grown since the Free Trade 
Agreement (FTA) between Canada and the Canada -European Free Trade Association (EFTA), which 
came into force on  1 July 2009. As an example, over the last 5 years, our overall bilateral tr ade 
grew 50 % from 2012 to 2016.This goods -focussed agreement reflects our shared commitment to 
trade liberalization.  
4.53.   Since the last Trade Policy Review, Iceland had to face many economic and financial 
challenges. Despite certain difficulties, some sectors  kept their economic dynamism following 
judicial and political decisions. We value our bilateral relationship and have some preoccupations 
that are aimed at maintaining and further developing our ties. In this respect, we have submitted 
questions to Icelan d and we take this opportunity to thank Iceland for the responses it provided 
last week to these questions.  WT/TPR/M/361 • Iceland  
 
- 17 - 
 
  4.54.   In addition to those questions, we would like to receive clarifications regarding the 
Secretariat Report on the Trade and Investment Regime, more sp ecifically on Investment 
Incentives. The Secretariat indicates that Iceland offers incentives pursuant to EU regulations. EU 
Regulation No. 651/2014 provides the legal basis for Iceland pursuant to the European Economic 
Area (EEA) to offer training aid, ai d to Small Medium Enterprises (SME), and to environmental 
protection investment projects. We would like to know if it would be possible to provide examples 
of environmental protection investment projects for which Iceland offers incentives pursuant to the 
EEA. 
4.55.   Like Iceland, Canada recognizes the importance of ensur ing that trade results in 
broad -based benefits for our citizens and for those throughout the world. This is at the core of 
Canada 's progressive trade agenda and we are thankful to Iceland for shar ing the same values. In 
particular, we would like to highlight that Iceland, like Canada, is fully committed to the 
importance of addressing gender issues in trade.  Indeed, in its Report on its Trade Policy Review, 
Iceland states that "advancing gender eq uality and women 's empowerment is integrated 
horizontally into all areas of Icelandic foreign and domestic policy, including trade policy ". Canada 
looks forward to working constructively with Iceland to facilitate the mutual prosperity that can 
flow from o ur economic relationship, and to build a strong domestic and global consensus on the 
value of trade, investment and inclusive growth. We appreciate the opportunity for this 
constructive exchange of views on all aspects of Iceland 's economy. Finally, we wis h the 
delegation the utmost success during this review.  
UNITED  STATES  
4.56.   The United States and Iceland enjoy a close friendship and partnership across a range of 
issues based on shared values an d principles. The economic relationship between the United 
States  and Iceland also remains positive. Two-way goods trade between the United States and 
Iceland totalled  more than U$800 million in 2016, with U.S. goods exports to Iceland, up more 
than US$30 mi llion from 2015, encompassing a wide range of products includin g inorganic 
chemicals, mineral fuels, aircraft, optical and medical instr uments, and many other products . 
4.57.   While Iceland maintains a relatively liberal trade and investment regime, there are areas 
where Iceland could make further improvements and we have hi ghlighted some of tho se in our 
submitted questions. We point first to the agricultural sector, where the Secretariat report notes 
that SPS measures remain strict because Iceland 's domestic animals are highly susceptible to 
exotic pests and diseases, leadin g to a prohibition of some imported products and controls and 
licensing requirements for others. We would look forward to more information regarding the basis 
for prohibiting some of the imp orted products. We also look forward to additional information on 
Iceland 's practices regarding notification of SPS measures to the WTO, particularly with respect to 
amendments and technical legislation und er the European Economic Area. Along these lines, we 
have asked questions in this TPR about Iceland 's public notific ation process for amending 
legislation as part of the EEA, and Iceland 's process for conducting the appropriate risk 
assessments relevant to their own consumer 's consumption and exposure levels, in order to 
determine their appropriate level of protection.  
4.58.   Similarly, the Secretariat report notes that Iceland has not submitted notifications related to 
import licensing and preferential rules of origin, nor has it submitted draft technical regulat ions to 
the WTO TBT Committee. We would encourage Iceland to prom ptly notify proposed measures to 
the appropriate WTO Committees in advance of their adoption, irrespective of how the measures 
were developed or whether they are notified to other particular trading partners, so that all 
Members may provide comment, as out lined in the WTO agreements.  
4.59.   The United States submitted advance written questions on certain aspects of Iceland 's trade 
and economic regime, which requested additional information regarding some of the  points that I 
have mentioned. We appreciate Iceland 's written response to our questions, and we plan to review 
the responses carefully and request clarifications as necessary during the course of this TPR.  
4.60.   In closing, we reinforce that the United States and Iceland have important common 
interests and our bil ateral and  WTO relationships are strong. The United States appreciates 
Iceland 's active engagement in a wide range of activities at the WTO, and the leadership it has 
provided through the years, including by furnishing excellent Chairpersons for negotiatin g bodies WT/TPR/M/361 • Iceland  
 
- 18 - 
 
  and Working Parties. Furthermore, we commend Iceland for ratifying the WTO Trade Facilitation 
Agreement and welcome its leadership in implementation.  
4.61.   We applaud Iceland 's progress since the 2012 review, and we pledge to work closely with 
Iceland i n the WTO and other venues towards our shared pursuit of an open global trading system.  
4.62.   Thank you very much  and I wish the Iceland team a successful review, and we look forward 
to further information and discussions on trade matters with Iceland, both here  at the WTO and in 
our bilateral exchanges.  
AUSTRALIA  
4.63.   The scale of Australia 's trade and investment relationship with Iceland is understandably 
limited due to geographical distance. However, there is always potential for growth, as evidenced 
by the recent expansion in Australian alumina exports.  
4.64.   In 2016, Australia 's total trade in goods and services with Iceland was worth $256 million 
and Australia was Iceland 's eleventh -largest source of imports. Last year , there was a steep 
increase in alumina exports, gr owing from a very low base in 2015 to $217 million in 2016, with 
producers shipping bauxite mined and refined in Australia to Iceland for smelting into aluminium, 
taking advantage of Iceland 's cheaper renewable energy prices.  
4.65.   Australia shares Iceland 's strong commitment to a fair, open and multilateral trading 
system. We continue to work very closely with Iceland on fisheries subsidies in particular.  
4.66.   We note the significant reform measures adopted by Iceland since its last Trade Policy 
Review in 2012, part icularly in managing its banking crisis and currency fluctuations. In particular, 
we note Iceland 's recent progress in lifting capital controls, privatising state -owned enterprises and 
stabilising its exchange rate. We also acknowledge the significant unil ateral steps taken by Iceland 
to liberalise trade in recent years.  
4.67.   Iceland 's economic recovery demonstrates the key role international trade plays in boosting 
economic growth. The policies and measures adopted by Iceland in the aftermath of the global 
financial crisis provide a useful example from which many other members, i ncluding Australia, can 
learn.  
4.68.   Iceland 's energy profile and high share of renewable energy sources are unique and provide 
an interesting window into how such an energy market operates. A ustralia looks forward to the 
release of Iceland 's forthcoming comprehensive energy strategy.  
4.69.   While Iceland maintains a relatively liberal trade and investment regime, we note there are 
areas where Iceland could make further improvements. The Secretariat report notes, for instance, 
that the simple average tariff rate on agricultural products remains high and prohibitive in certain 
chapters. We are aware that Iceland provides some of the highest levels of agricultural and 
producer support amongst OECD count ries. Australia would also like to see more progress in 
removing investment restrictions, particularly in terms of energy, fishing and transport.  
4.70.   As its economic recovery continues, we encourage Iceland to maintain its commitment to 
economic reform and tra de liberalisation. Australia looks forward to working cooperatively with 
Iceland in promoting a rules -based, free and open global trading environment.  
4.71.   In conclusion, we welcome Iceland 's responses to our advance written questions. We wish 
Iceland success i n this Trade Policy Review, and express our support for the approach it has taken 
on gender in the review.  
CHINA  
4.72.   With GDP growth average d 3.8% during the review period  I would applaud for the 
continuous  recovery of Iceland, one of the country 's worst affec ted by the 2008 financial crisis. As 
indicated by the Secretariat report, a number of significant changes to the trade policy of Iceland 
have taken place, such as tariff elimination of non -agricultural products, improvement of custom WT/TPR/M/361 • Iceland  
 
- 19 - 
 
  procedures, new free t rade agreements, etc. We are of the view that, with these efforts, and 
possible new efforts in the future, it will foster a sustained economic development for Iceland, as 
international trade remains critically important of its economic and social developme nt. 
4.73.   As a founding WTO Member, Iceland has been a strong advocate of free trade, and remains 
firmly committed to the multilateral trading system and the objectives of the Doha Mandate. China 
commends Iceland 's efforts in this regard, and is ready to collabo rate with Iceland and the whole 
membership in a bid for successful MC11 with reasonable level of ambition.  
4.74.   Coming to the bilateral front, the economic and trade ties be tween China and Iceland have  
been constantly deepened in recent years, and the cooperati on in investment has gained a steady 
development as well. With the free trade agreement signed and coming into force, which is a 
milestone event for both countries, the two sides have performed closer cooperation in the area of 
geothermal development and u tilization, engineering projects, fishing industry, shipping industry, 
ship building, telecom, financial sector, etc. Notably, the bilateral trade exceeded US$540 million 
las year, an increase of 9.7% compared with the previous year. China remains the larg est trading 
partner in Asia for Iceland. We also witnessed and foresee a great potential of cooperation in 
tourism, houses building, airport expressway construction, harbour construction, oil and gas 
development, aluminium factory upgrading, etc.  
4.75.   Neverthel ess, foreign enterprises are now faced with certain challenges when investing in 
Iceland, like the limitations on real estate investment and shareholding restrictions on fishing 
enterprises. We would expect the policy improvement of these areas and will en courage more 
Chinese enterprises to do business in Iceland.  
4.76.   I wish the 5th Trade Policy Review of Iceland a complete success.  
REPUBLIC  OF MOLDOVA  
4.77.   The Republic of Moldova recognizes the important role played by Iceland in the WTO, 
strongly supporting an ope n and rules -based multilateral trading system anchored in the WTO. 
Iceland is an active participant having made a number of important proposals during the Doha 
Round, including on the sustainable development in fisheries and effective disciplines for fishe ries 
subsidies.  
4.78.   We would also like to seize this opportunity to congratulate Iceland on the ratification of the 
Trade Facilitation Agreement in October 2016, the implementation of the revised ITA product 
coverage and the completion of the procedures for b ecoming a party to the revised GPA in April 
2014.  
4.79.   Iceland is currently the OECD 's smallest, but fastest growing economy. In spite of the 
financial crisis that hit Iceland in 2008, prudent macroeconomic management and continued 
openness of the economy have since helped turn the economy around. GDP growth accelerated to 
7.2% in 2016, supported by strong private demand, surging investment, booming tourism and 
expansionary fiscal policy. However, as a small size economy, with limited production base and 
high re liance on natural resources, Iceland 's economy remains volatile and prone to boom and 
bust dynamics. In this respect, we encourage the Government of Iceland to focus on 
macroeconomic policy frameworks that would ensure resilient and stable growth and promo te 
sustainable and inclusive growth of tourism. In this context, trade is critically important to 
Iceland 's economy, as exports and imports of goods and services represented 90% of the GPD in 
2016.  
4.80.   We welcome the considerable progress made by the authorit ies in dismantling capital 
controls and developing a new regulatory architecture governing capital flows.  
4.81.   We commend Iceland on their bold decision to eliminate tariffs on all non -agricultural 
products since 1 January 2017, as well as the reduction of tar iffs on some agricultural products, 
which will provide duty free access on nearly 90% of tariff lines. However, we express concern 
about the remaining high tariffs on several agricultural product groups, particularly meat, dairy, 
plants and flowers, which are complex non -ad valorem duties. Increases in total support to 
agriculture during 2012 to 2016 are also concerning, and we are looking forward to the revisions WT/TPR/M/361 • Iceland  
 
- 20 - 
 
  and the phasing out of certain entitlements. Although in general Iceland applies EU rules on f ood 
security and SPS measures, we would also like to encourage Iceland to notify its SPS measures, 
licensing requirements, as well as preferential rules of origin in respect of the transparency 
principle of the WTO.  
4.82.   We commend the fact that since 2012, Ice land has started implementing several projects to 
improve customs procedures. These included the introduction of a risk management system, 
revision of the long -standing single administrative document (SAD), introduction of a quality 
control system, advance s towards the establishment of an authorized economic operator (AEO) 
programme according to the World Customs Organization standard, and work towards a single 
window application and an electronic system for the clearance of vessels. We are confident that 
further efforts in this area will reduce the current high border compliance costs for both imports 
and exports compared to other OECD high -income countries. The implementation of the Trade 
Facilitation Agreement will also contribute to improving customs pro cedures.   
4.83.   We welcome the expansion of the preferential agreements, both in the framework of the 
EFTA and bilaterally. Currently, the EFTA FTAs in force comprise a large network of 25 agreements 
with 36 partners. Since 2012, several new FTAs entered into f orce with countries in Central 
America (Panama and Costa Rica), Bosnia and Herzegovina, and the Gulf Cooperation Council. 
Bilaterally, Iceland has concluded an FTA with China.  
4.84.   On some of the points raised above, the Government of the Republic of Moldova ha s 
addressed several questions to Iceland and we thank Iceland for the comprehensive replies 
provided to our questions in due time. We will study them carefully and revert back bilaterally if 
necessary.  
4.85.   Regarding bilateral trade and economic relations betwe en Moldova and Iceland, we note a 
positive dynamic in the volume of bilateral trade. In 2016 the trade balance was in favour  of 
Iceland and compared to 2015, imports from Iceland to Moldova have increased by 63%. Main 
import products are fish and derived p roducts, which account for 98% of Moldovan imports from 
Iceland, as well as pharmaceutical products and some electronic tools. Moldova exports various 
glass containers and alcoholic beverages. We hope to see further expansion of exports of Moldovan 
wine an d organic products to the market in Iceland. We also encourage investors from Iceland to 
participate in technical and development projects in our country.  
4.86.   The Republic of Moldova has also expressed its readiness in signing a FTA with EFTA 
countries. In th is respect, I am pleased to note the openness of EFTA Governments and Iceland 
particularly, to initiate consultations on this important endeavour . Moldova and EFTA Secretariat 
have reached a decision to start this process by signing a Joint Declaration on Cooperation as a 
first step towards the initiation of negotiations of a Free Trade Agreement.  
4.87.   We are interested in signing this important declaration on November 24, when the Moldovan 
Deputy Prime minister, Minister of Economy and Infrastructure, will atte nd the EFTA Ministerial 
conference.  
4.88.   The Republic of Moldova is confident that the 5th exercise of the trade policy review will help 
Iceland to achieve its economic objectives and fully honour  its international commitments.  
4.89.   On behalf of my Ambassador, Tudo r Ulianovschi, may I also take this opportunity to express 
our deep appreciation for Ambassador  of Iceland H.E. Mr. Högni S. Kristjánsson for his outstanding 
work and diplomatic skills. He has been a good friend and partner of Moldova. We wish him further 
professional success  in his new upcoming endeavour.  
4.90.   We look forward to continue further strengthening our bilateral relations with Iceland and, 
on behalf of the Republic of Moldova, I wish to the whole d elegation of Iceland the utmost success 
during its fi fth WTO Trade Policy Review Cycle.  
SWITZERLAND  
4.91.   At first blush, Iceland and Switzerland could not be more  different. We, Swiss, are a 
landlocked people of course, and the Icelanders have been a sea -faring nation. But Iceland and WT/TPR/M/361 • Iceland  
 
- 21 - 
 
  Switzerland share a fruitfu l and close partnership as long standing members of the European Free 
Trade Association (EFTA) . Within EFTA, the two of us work closely together in shaping a 
multifaceted trade policy.  
4.92.   The bilateral economic relations between Switzerland and Iceland are mutu ally beneficial 
and without any problems. In general, bilateral trade is close to being balanced with a slight trade 
surplus in Switzerland 's favour last year. Trade between our two nations is dominated by products 
of the forestry, agriculture and fishery sectors. Moreover, Switzerland is one of the main investors 
in Iceland. It is for this reason that we follow with interest the gradual re -opening of the Icelandic 
capital account and take note of the fact that the country 's foreign exchange reserves have 
continued to rise.  
4.93.   Iceland managed to recover astonishingly fast from the financial crisis in 2008, not least on 
account of a strong institutional environment and a well -entrenched and equally well -developed 
free market economy. Iceland 's GDP growth since 2012 has been impressive as was the cutting in 
half of th e unemployment rate to a mere 3 %. Indeed, the Icelandic economy seems to be enjoying 
the rather uncommon phenomenon of a positive output gap. On top of that, the terms of trade of 
Iceland have improv ed more sharply than in other comparable countries.  
4.94.   This is not to say that there are no problems. The labour market is on the brink of 
overheating. But the flexibility of the labour market and an influx of workers from abroad seem to 
mitigate some of the  risks associated with eventual bottlenecks.  
4.95.   The real effective exchange rate of the Krona has also appreciated sharply. This may 
dampen economic activity a bit, especially in the increasingly important tourist sector. A strong 
currency is yet another asp ect Switzerland has in common with Iceland. The evolution of our 
currencies and especially the exchange rate towards the Euro are of vital interest for both our 
countries. We are both faced with exchange rate risks affecting the international competitivene ss 
of domestic industries.  
4.96.   As was pointed out, tourism has fast become Iceland 's largest export sector. This may, of 
course, pose economic cluster risks. As we in Switzerland have experienced ourselves, tourism is 
often subject to fickle external demand. T he Icelandic authorities seem to be well aware of the 
risks associated with this as they, amongst other things, envisage a set of tax -related measures in 
order to put tourism on a more sustainable growth path and to increase the economy 's resilience. 
This is in line with the recommendation of the IMF to devise a holistic tourism strategy.  
4.97.   The Secretariat report also mentions that part of the Icelandic energy strategy for 2020 is 
the replacement of fossil fuels with renewable energies. We will analyse the s trategy once it is 
completed. We would be keen to learn what its policy instruments will be and what possible role 
any fossil fuel pricing might play to decrease the use of fossil fuels.  
4.98.   If there is a specific trade policy which has caught the eye of the Swiss administration, it is 
Iceland 's decision to resort to a unilateral dismantling of her tariffs on non -agricultural goods. We 
have submitted questions with respect to this measure and will study the replies given by the 
Icelandic authorities with great  interest. Aside from the expected positive effects this bold step 
might entail, we are in particular interested in how the various economic operators of the country 
have perceived the elimination policy. Moreover, we also realiz e that it might be difficul t to gauge 
any real effects of this policy on the general price level of the economy as other factors such as 
fluctuations in the nominal exchange rate or wage demands generated by a buoyant labour market 
play into the overall picture.  
4.99.   In any event, Switz erland would like to thank Iceland for having provided very detailed 
answers to all the questions we had submitted in advance. We look forward to further constructive 
discussions with the delegation of Iceland in this trade policy review.  
ARGENTINA  
4.100.   Argenti na would like to congratulate Iceland not only on its economic recovery, despite the 
impact of the crisis of 2008, but also for having maintained solid growth, low inflation, increased 
reserves, a surplus on its current account, lower levels of public debt  and full employment.  WT/TPR/M/361 • Iceland  
 
- 22 - 
 
  4.101.   A noteworthy feature is the growth of tourism in recent years. In 2016, it accounted for 
around 10% of GDP and almost 40% of export receipts for goods and services.  
4.102.   Argentina appreciates the gender equality policies which for some yea rs, according to 
World Economic Forum reports, have made Iceland one of the most egalitarian of societies.  
4.103.   In particular, we note Iceland's trade policy of maintaining Free Trade Agreements within 
the framework of the European Free Trade Association (EFTA)  and its international trade objectives 
which, for 2015 -2016, included strengthening the network of free trade agreements, among others 
with MERCOSUR.  
4.104.   Moreover, as reflected in the questions submitted by Argentina, other areas of interest to 
us include: bo rder compliance costs for imports and exports; the authorized economic operator 
system and the procedures for enabling foreign operators to benefit from that status; the Customs 
Act and the customs classification of goods; the number of tariff lines with n on-ad valorem  rates 
that Iceland maintains; and the fee charged by the Customs Directorate for the processing and 
clearance of goods.  
4.105.   Finally, we reiterate our appreciation of this fresh opportunity to exchange opinions and 
views on Iceland's trade policie s and practices and – once again – would stress the importance of 
this transparency exercise in all its aspects, while wishing the Icelandic authorities a successful 
conclusion to the present review.  
COSTA  RICA 
4.106.   Costa Rica recognizes Iceland's commitment to  the WTO and the multilateral trading 
system. In fact, international trade plays a fundamental role in Iceland's economy and has been a 
bulwark in times of crisis.  
4.107.   Less than a month ago, Costa Rica's Minister of Foreign Trade, Mr  Alexander Mora, made 
an official visit to Iceland and confirmed on the spot the excellent state of the Icelandic economy 
and the reasons that have led to this small country becoming a leader in such fields as the 
management of fishery resources, energy, trade, gender equality and w elfare policies for its 
people.  
4.108.   We are pleased by the entry into force, in September  2014, of the Free Trade Treaty 
between Iceland, as a member of EFTA, and Costa Rica and Panama. This marked the culmination 
of a longstanding desire for closer ties betwee n our countries. We hope that this Treaty will make 
it possible to boost trade and investment, which are still at relatively low levels, between 
two complementary economies, such as those of Costa Rica and Iceland.  
4.109.   As previous speakers have done, we would like to stress the impressive recovery of the 
Icelandic economy since the crisis of 2008, due largely to a very clear political consensus 
concerning the essential features of a market economy and the maintenance of the welfare state. 
Iceland has recognized  the role of free trade as a driver of its economy and, in particular, in 
improving its competitiveness and diversifying its export range. The elimination of tariffs on 
industrial products is an example of this commitment, as is its participation in pluril ateral 
initiatives such as TiSA and EGA.  
4.110.   The Secretariat report draws attention to certain outstanding notifications. For Costa Rica it 
is fundamental that all WTO Members should meet their transparency obligations and we trust that 
Iceland will take the s teps necessary to improve its performance in this field.  
4.111.   Costa Rica submitted various questions concerning government procurement, bilateral 
investment agreements, measures relating to foreign direct investment, and air transport services. 
My delegation is  grateful for the replies to these questions that were sent to my authorities in the 
capital.  WT/TPR/M/361 • Iceland  
 
- 23 - 
 
  ECUADOR  
4.112.   We are participating in this Trade Policy Review with special interest, given the positive and 
promising political, economic and trade relations maintain ed between Iceland and Ecuador.  
4.113.   It should be noted that the fourth round of negotiations with the European Free Trade 
Association, of which Iceland is a member, is to be held next week. Through this mechanism we 
countries are seeking to complement our econ omies with a view to achieving a favourable balance 
of trade. Ecuador's main exports to the EFTA countries are fruit, cocoa, flowers and precious 
metals, while pharmaceutical inputs account for more than 60% of EFTA exports to Ecuador.  
4.114.   With regard to the S ecretariat report, we note that Iceland is a small and open economy, 
with a relatively small population and a limited range of natural resources, apart from energy and 
fish, so that trade is of vital importance. In 2016, imports and exports of goods and se rvices 
accounted for around 92% of GDP.  
4.115.   Between 2012 and 2016, Iceland's GDP grew at an average rate of 3.8%, driven by 
tourism -related services, whereas the contribution made by the traditional fishing, fish processing 
and aluminium sectors declined.  
4.116.   Ecuador notes with interest that in response to the financial crisis Iceland imposed 
temporary restrictions on certain types of cross -border capital transfers and foreign -exchange 
transactions and, moreover, that these capital controls made an important contri bution to 
achieving and safeguarding the objectives of the policy measures it adopted, namely, to stabilize 
the exchange rate, ensure medium -term fiscal sustainability and develop a broad strategy for 
restructuring the banking system. Public policy control s which enabled it to achieve its goals.  
4.117.   It is also important to note that Iceland is party to 32 reciprocal preferential agreements 
and, during the review period, signed an FTA with China.  
4.118.   Ecuador recognizes that Iceland has initiated improvements in cust oms procedures, in 
particular by introducing a risk management system and quality controls and establishing a 
single -window system. Moreover, in October of last year it submitted its instrument of ratification 
of the WTO Trade Facilitation Agreement.  
4.119.   Likew ise, we note that although Iceland has eliminated the tariffs on all non -agricultural 
products, it still maintains high tariffs in the form of complex non -ad valorem  duties on various 
groups of agricultural products such as: meat, dairy products, plants an d flowers.  
4.120.   On the other hand, we observe with interest that under new legislation Iceland is granting 
tax incentives for regional investment that depend on the size of the enterprise. In addition, there 
are incentives for research and investment in the for m of tax credits and grants.  
4.121.   It is important to note that although the contribution of fishing and fish processing to 
Iceland's GDP has declined, there is a 25% limit on foreign direct ownership and a 49% limit on 
combined direct and indirect ownership in this sector.  
4.122.   In conclusion, we would like to thank the Iceland delegation in advance for its replies to 
the questions submitted concerning certain specific aspects of its trade policy, which will provide 
important information for strengthening bilateral re lations in the area of foreign trade.  
BRAZIL  
4.123.   Let me first welcome and congratulate the Delegation of Iceland, headed by Director 
General Unnur Ramette, for the comprehensive presentation at the opening of this session. Let me 
also thank Ambassador Kristján sson and the WTO Secretariat for their reports, as well as the 
Discussant, Ambassador Alvaro Cedeño, for his comments.  
4.124.   Brazil is pleased to take part in the fifth Trade Policy Review of Iceland. In the period under 
review, the economy has shown remarkable resilience recovering from the economic crisis that 
heavily hit the country in 2008. The timely and courageous measures adopted by the government WT/TPR/M/361 • Iceland  
 
- 24 - 
 
  rapidly stabilized the exchange rate and ensured fiscal sustainability, contributing to an 
accelerated economi c expansion since then.  
4.125.   We note as well the dynamism of Iceland`s tourism industry, which overtook fisheries and 
aluminum as the largest export sector. The development of tourism -related activities was 
fundamental to GDP growth, estimated at an average ann ual rate of 3.8% from 2012 to 2016. 
Moreover, in the last three years surpluses in trade in services generated by increased tourism 
services helped to offset deficits in trade in goods.  
4.126.   On a less positive note, despite the zeroing of tariffs on all non -agricultural products, the 
country keeps a high level of tariff protection on a number of agricultural goods, including animal, 
dairy and vegetable products. For products of animal origin, a sector of particular interest to Brazil, 
the average applied tariff is 76%, with a peak of 461%.  
4.127.   The Secretariat report points out to outstanding notifications in areas such as TBT, SPS, 
import licensing and preferential rules of origin. We encourage Iceland to step up its efforts to 
comply with notification obligations.  
4.128.   Our bilateral relations with Iceland can be traced back to the arrival of a group of 
Icelanders to the south of Brazil in the latest decades of the nineteenth century. Currently, the 
Icelandic community in my country is estimated at over one thousand people . 
4.129.   Bilateral trade relations have a clear potential for growth. In 2015, bilateral trade flows 
totalled  310 million dollars and have declined substantially since then. Brazilian exports to Iceland 
are basically made up of aluminum oxide while imports are ma inly composed of electrical 
appliances, fish, and aluminum sheets. There are certainly opportunities for diversification.  
4.130.   Regarding investment, we highlight the presence of the Icelandic company Marel in Brazil, 
providing equipment, systems and services to  the fish, meat and poultry industries. There is also 
potential for investment in areas such as biofuels, pharmaceutical, food processing and genetic 
research.  
4.131.   Brazil and Iceland are also committed to strengthening economic relations and cooperation 
throug h the recently started MERCOSUR -EFTA negotiations aimed at concluding a comprehensive 
free trade agreement. The second round of meetings, which took place last month in Geneva, was 
carried out in a friendly and constructive climate, achieving progress in e very area. We expect 
further progress in the intersessional meeting that will be held in Argentina in October.  
4.132.   Brazil continues to follow with interest domestic developments in Iceland regarding its 
trade policy. We have submitted a question concerning tar iffs on agricultural products and we are 
thankful for the reply provided. Let me conclude, Mr. Chairman, by wishing the delegation of 
Iceland a successful Trade Policy Review.  
PERU  
4.133.   Peru is pleased to hear of the good economic results achieved by Iceland du ring the review 
period, particularly with regard to the increased liberalization of its trade, the recovery of its 
economy and the important role being played by tourism, that is, trade in services, in its economy. 
We note with satisfaction that the measur es taken to confront the crisis of 2008 have not been left 
in place, which demonstrates Iceland's confidence in free trade.  
4.134.   Peru and Iceland have a trading relationship with a specific legal framework, thanks to the 
Free Trade Agreement between Peru and th e States of the European Free Trade Association, which 
includes an agreement on agricultural products with Iceland. We note that the bilateral trading 
relationship with Iceland has not developed in the same way as those with other States parties to 
the Agr eement in question, a situation which we could examine to see how it might be improved. 
At the same time, we are hoping that the negotiations on the Trade in Services Agreement (TiSA), 
in which both Peru and Iceland are participating, will soon be resumed.  
4.135.   We have submitted only two questions in connection with the present review, inquiring 
about points relating to the promotion of gender equality raised in the reports.  WT/TPR/M/361 • Iceland  
 
- 25 - 
 
  4.136.   We are grateful for Iceland's timely replies to our questions which are acquainting us w ith 
good practice in the area of gender equality promotion and which we will be examining and 
considering in detail in relation to our own national context.  
4.137.   Finally, my delegation would like to convey to Iceland their best wishes for the continuing 
develop ment of its economy and trade, with respect to which it can count on a partner in Peru, 
and also to wish it a successful Trade Policy Review.  
PHILIPPINES  
4.138.   Iceland is one of the wealthiest economies in the world with a population of just over 
330,000 people and a GDP per capita of more than € 50,000.  
4.139.   Given its small open economy and limited range of natural resources, trade is of vital 
importance to Iceland 's economy. International trade is at the core of its economic and foreign 
policy.  
4.140.   Iceland negotiates,  concludes and administers its free trade agreements mostly in 
association with its European Free Trade Association (EFTA) partners. The Philippines is pleased to 
be among the countries that have recently conclud ed an FTA with the EFTA member States in 
April 2016. The Philippines -EFTA FTA seeks to provide greater market access and increase trade 
between the Philippines and the EFTA members, including Iceland.  
4.141.   Philippines -Iceland bilateral trade significantly increased in 2016 compared to the previous 
year. Among the top Philippine exports to Iceland are boring or sinking machineries, containers 
designed for carriage, and articles of jewellery . The top Philippine imports from Iceland, on the 
other hand, are mackerel, spools, and rubber thread, among others.  
4.142.   The Philippines and Iceland are two of the world 's largest producers of geothermal energy 
for power generation, ranking 2nd and 7th, respectively. Iceland 's biggest investment in the 
Philippines is a geothermal facility established by Orka Energy in the Vi sayas region.  
4.143.   In addition to geothermal energy, the Philippines and Iceland also share the same priorities 
in terms of promoting gender equality. Both countries rank among the top ten in the 2016 World 
Economic Forum 's Global Gender Gap Report.  
4.144.   With the r ecently concluded Philippines -EFTA FTA and the array of possible market 
opportunities between the two countries, the Philippines looks forward to further enhancing the 
mutually beneficial economic relations between the Philippines and Iceland.  
4.145.   In closing,  the Philippines would like to congratulate Director General Unnur Orradottir 
Rame tte and Ambassador Hogni Kristjánsson for its 5th Trade Policy R eview. We would also like to 
express our appreci ation to Ambassador Alvaro Cedeñ o Molinari of Costa Rica for h is insightful 
comments as discussant, and to the Secretariat for preparing a comprehensive report.  
SINGAPORE  
4.146.   Singapore and Iceland enjoy good trade relations which are facilitated by the EFTA -
Singapore Free Trade Agreement. The RTA entered into force in Ja nuary 2003 and was the first 
FTA signed between EFTA and an Asian country. Parties are currently undergoing the fourth review 
of the FTA and we look forward to concluding it soon.  
4.147.   Iceland has indeed seen remarkable recovery since the 2008 financial crisis.  We commend 
Iceland for its continued commitment to an open economy and trade liberalization; in particular we 
note the recent elimination of all tariffs for non -agricultural goods. 90% of all tariff lines are now 
duty free compared to 70% in 2012.  
4.148.   We also  note Iceland 's ongoing work in improving its customs procedures, including the 
establishment of an authorized economic operator programme, a single window system and an 
electronic system for the clearance of vessels.  WT/TPR/M/361 • Iceland  
 
- 26 - 
 
  4.149.   At the WTO, Iceland is a firm supporte r of the system and has shown leadership through 
its actions . We commend Iceland for its timely notification of the Trade Facilitation Agreement and 
acceptance of  the protocol amending the TRIPS  Agreement.  
4.150.   Iceland is also a participant of various MFN pluri laterals, including the ITA expansion and 
the EGA. We note, however, Iceland 's mixed record on WTO notifications with no notifications 
recorded in some areas and only two for  SPS over the period under review. We urge Iceland to 
make these notifications as soon as possible.  
4.151.   Much like its football team 's stellar performance at the 2016 European championships, 
Iceland is an example that even small nations can play a significant role in pushing forward the 
global trade agenda. And that we must courageously and collectively fight the tide of protectionism 
and build rules based multilateral trading system that works for all . 
4.152.   We wish Icel and every success in its fifth Trade Policy R eview.  
REPUBLIC  OF KOREA  
4.153.   I am pleased to note that despite geographical distance , Korea and Iceland have 
maintained a cooperative economic relationship. Our relationship has been further enhanced since 
the entry into force of the FTA betwe en Korea and the EFTA in 2006.  
4.154.   The economic relationship between Korea and Iceland is positive and gr owing, with 
bilateral trade reaching US$63 million in 2016. In the coming years, we hope and expect that our 
cooperative bilateral relations, particularly in the areas of trade and investment, will continue to be 
strengthened.  
4.155.   Turning to Iceland 's overall  economic performance, we are also pleased to note that the 
Icelandic economy has continued to recover from the severe economic crisis that started in 2008.  
4.156.   According to the Secretariat 's report, GDP growth averaged 3.8% for 2012 -16, while GDP 
per capita r eached nearly US$60,000 in 2016. This has been possible due to, among other factors, 
tourism -related services together with the overall strength of its key industrial sectors such as 
fishing and energy.  
4.157.   In order to put the economy of Iceland on a more sust ainable track, we believe that it is 
encouraged for the government of Iceland to continue to make efforts to reform its economy, 
including areas such as the banking sector, and to take further steps toward reducing public debt.  
4.158.   With a small open economy a nd limited range of natural resources, trade is very important 
to Iceland 's economy.  
4.159.   In that sense, we would first like to recognize and praise its overall strong commitment to 
an open and multilateral trading system. Iceland 's MFN tariffs are quite low an d nearly 90% of all 
tariff lines are duty free.  
4.160.   As the Secretariat 's report highlights, it is particularly noteworthy and commendable that 
Iceland did not introduce any protectionist measures in the midst of the recent economic crisis. 
Iceland has also co ntinued to make efforts to improve its Intellectual Property Rights (IPR).  
4.161.   In addition, since 2012, Iceland has implemented several projects to improve customs 
procedures including the introduction of a risk management system.   
4.162.   Furthermore, we commend th at Iceland has never used or initiated investigations fo r 
anti-dumping or countervailing duties, and export subsidies for agricultural products have not been 
used by Iceland since 1998.  
4.163.   While we note that Iceland maintains a relatively liberal trade and in vestment regime, 
there are areas where Iceland could make further improvements.    WT/TPR/M/361 • Iceland  
 
- 27 - 
 
  4.164.   We would like to encourage Iceland to continue to address the concerns of other Members 
in such matters as those regarding complex tariff regimes for some products, outstand ing poor 
notifications in such areas as TBT/SPS, Import Licensing, and Preferential Rules of Origin, and 
restrictive measures on foreign investment in the energy sector.  
4.165.   In particular, we would like to know whether the government of Iceland has a plan to open 
the energy sector to non -EEA countries in order to attract further foreign investment.  
4.166.   Korea is pleased to note the steps Iceland has taken since the last review to make the 
overall trading and economic environment more efficient, and we certainly en courage Iceland to 
continue in the direction of facilitating trade, increasing investment, and enhancing the overall 
economic environment in a sustainable way.  
4.167.   Korea looks forward to working with Iceland to enhance opportunities for trade and 
investment, and especially this year to contribute to accomplishing meaningful outcomes in the 
MC11 to be held in Buenos Aires in December.  
4.168.   In closing, we would like to express once again appreciation to the delegation of Iceland for 
their hard work and wish them eve ry success in this TPR.  
NORWAY  
4.169.   As others, Norway would like to welcome our friends from Iceland to this fifth review of 
Iceland’s trade policy, and commend the Secretariat and Iceland for their reports, which form the 
basis for the review.  
4.170.   Iceland has expe rienced a remarkable turnaround since the 2008 crisis. Iceland is now 
developing its welfare state further. There are now opportunities for the citizens and a belief in a 
prosperous future for the whole nation. Recently adjusted figures show that Iceland h ad an 
economic growth rate at 7.4% in 2016. The strong growth is mainly due to three features: 
exports, private consumption and investment. However, the strong growth also puts Iceland in a 
position of potentially overheating the economy.  
4.171.   Norway cooperates  closely with Iceland in a number of trade -related areas. We share a 
strong commitment to the rules based multilateral trading system with the WTO at its core. We 
work closely together in the negotiations and regular activities of the WTO, in the negotiati ons of 
free trade agreements in the framework of EFTA, and through the EEA Agreement.  
4.172.   Trade between our two countries is substantial. In terms of merchandise goods, in 2016 
Norway accounted for 4.3% of Iceland 's exports and 9.0% of Iceland 's imports. Durin g the same 
year, the EU 's corresponding shares were 73.2% of Iceland 's exports and 52.5% of imports. It is 
well understood that the EU and the European Economic Area are crucial to Iceland.  
4.173.   We note that tourism is now Iceland 's largest export sector in ter ms of earnings, larger 
than the fishing industry and the aluminium industry combined. The strong growth in tourism has 
had a considerable positive influence on the Icelandic economy in recent years, but also brought 
challenges due to its impact on the envi ronment, the housing market, the labour market and most 
infrastructures.  
4.174.   Norway and Iceland have many shared positions in terms of trade policy, including in 
relation to agriculture. We  cooperate closely within the G 10 because both of our countries believe  
it is important to maintain a viable agricultural sector, also in high cost countries and countries far 
to the North with harsh and challenging climatic conditions.  
4.175.   Iceland naturally brings to any table its great expertise in fisheries. Iceland has done s o 
again in co -sponsoring with New Zealand and Pakistan an important proposal in the fisheries 
subsidies negotiations to implement SDG 14.6 in the WTO. When Iceland voices its opinions and 
shares its experience in fisheries matters, others listen. We expect  Iceland to continue to support 
actively the fisheries subsidies negotiations in the lead -up to WTO 's next ministerial conference.  WT/TPR/M/361 • Iceland  
 
- 28 - 
 
  4.176.   We commend  Iceland for its leadership role as a gender champion. Like Iceland, Norway 
works to advance gender equality and wo men's empowerment horizontally in all areas of foreign 
and domestic policy, including trade policy. Both Norway and Iceland have experienced the 
economic benefits that increased gender equality brings. We look forward to further strengthening 
our work in t his area with Iceland.  
4.177.   Iceland is an active player on the multilateral stage, and an important trading partner for 
Norway. We look forward to continued close cooperation with Iceland, and trust that this trade 
policy review will be useful, both for Iceland  and for its trading partners.  
MONTENEGRO  
4.178.   Montenegro would like to associate itself with the statement of the European Union.  
4.179.   Montenegro wishes to draw attention to the positive reports of the WTO Secretariat and 
the Government of Iceland indicating that s ince Iceland 's last Trade Policy Review in 2012, 
Iceland 's economic positi on has improved significantly. Iceland was recovering from the effects of 
the severe financia l crisis that occurred in 2008.  Since then GDP, growth averaged 3.8% for the 
2012-2016 wi th the GDP per capita reaching nearly US$60,000  in 2016. Given the deep challenges 
that occurred in 2008, Montenegro commends Iceland for the impressive recovery of its economy 
and the significant improvements introduced to its trade policies and investmen t condition.  
4.180.   Montenegro notes the strong role that tourism plays in Iceland 's economy.  As the 
Government of Iceland observes in its report, the tourism sector has experienced strong growth in 
recent years becoming the largest export sector. In particular, tourism grew by more than 37% in 
real terms in 2016, which was around four times higher than 2010; that almost 1.8 million tourists 
visited Iceland in 2016 and that fore casts predict continued growth.  As a State that highly relay on 
tourism, Montenegro exp resses its particular interest in learning more about the Iceland 's policies 
addressing the challenges linked to tourist industry highlighted in the Government report, 
including the major impact on the environment, labour market and infrastructure.  
4.181.   In add ition, Montenegro welcomes the inclusion of a section on gender and trade in the 
Government of Iceland 's report. We commend the commitment of the Government and the 
Parliament of Iceland to implement the new Action Plan and over 20 projects aimed at gender  
mainstreaming. The Government of Montenegro and Iceland cooperate closely on questions of 
gender equality in the WTO and beyond. We will continue to support Iceland 's leadership in 
promoting gender dimension in trade in preparation of the MCXI with the vi ew that these questions 
are of great importance to trade policy and inclusive economic development. In addition, 
Montenegro is looking forward to continue close cooperation with Delegation of Iceland on current 
negotiations for the successful outcome in Bu enos Aires in December.  
4.182.   Iceland and Montenegro have strong bilateral relationship that stretches back to Iceland 
being the first State t o recognize Montenegro in 2006.  Montenegro is very grateful to Iceland for 
its deep relationship, which now extends acr oss important areas of trade, being capped by the free 
trade agreement that Montenegro shares with Iceland in its role as an EFTA member.  
4.183.   Finally, Montenegro is looking forward to continuing excellent and co nstructive 
engagement with the d elegation of Ice land in Geneva. I would like to use this opportunity to 
express my sincere gratitude for excellent cooperation to my distinguished co lleague Ambassador 
Hogni Kriatjá nsson and to wish him all the best in his future endeavours.    
4.184.   My delegation wishes Icelan d every success in its fifth Trade Policy Review.  
INDIA  
4.185.   Iceland is a high income developed count ry with a per capita GDP of US$6000 in 2016. 
During the period under review , the economy of Iceland performed strongly with robust growth, 
low inflation, rising  reserves, fiscal and current account surpluses and the decline in the public 
debt. The economy turned around after the financial crises and registered an avera ge annual 
growth rate of 3.8%. The growth has been primarily driven by trade and tourism related  services. 
As a member of the European Free Trade Association and the European Economic Area , many of WT/TPR/M/361 • Iceland  
 
- 29 - 
 
  the trade policies of Iceland are closely related to the European Union as Iceland is part of the 
internal market with free movement of goods, serv ices, c apital and workers. The key concerns for 
Iceland remain high dependency on trade concentrated on fish products and aluminium 
manufacturing and eff orts to diversify the economy. We commend the Government of Iceland for 
taking several measures to promote eco nomic growth, consumption and investment including 
lifting capital controls, managing public finance s and tax and customs reforms.  
4.186.   India and Iceland share clos e, warm and friendly relations.  The trade between both 
countries though modest has considerable p otential to grow in sectors like chemicals, textiles, 
energy equipment, machinery, pharmaceut ics and Information Technology.  Investments from 
Iceland in India are also growing with the presence of companies from Iceland in areas like 
pharmaceutica ls, energ y, hydro power and IT.  India and EFTA are currently engaged in 
negotiations on the Trade and Economic Partnership Agreement (TEPA) and  several rounds have 
been held.  The conclusion of the agreement would give a further boost to our trade and economic 
ties with EFTA countries including Iceland.  
4.187.   To conclude, we look forward to working closely with Iceland for further expanding our 
trade and inve stment ties for mutual benefit.  We would like to place on record the commendable 
work being done by the Ambassador of Iceland to the WTO, Mr. Hogni S. Kristjá nsson and we wish 
the delegation of Iceland a productive and successful TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.188.   As mentioned in the Secretariat report, Iceland has eliminated tariff s on all non -agricultural 
products in the beginning of 2017. Now , Iceland has nearly 90% duty -free tariff lines compared to 
70% in 2012, which is an inspiring progress. It proofs that Iceland is heading to being a more 
open economy and being as the champio n of multilateral trading system.  
4.189.   Since the financial crisis in 2008, Iceland has rapidly recovered from the severe recession 
due to the collapse of its banking sector. We admire the resilience of the Icelandic people. The 
effective financial policy and co ntinued openness of the economy have turned the situation around. 
The tourism -related services contribute the major parts to its economic growth. It represented 
about 10% of GDP and 40% of goods and services export. The Icelandic airlines promotes the 
Iceland as a transatlantic hub. The total number of passengers through Keflavik airport in 2017 is 
estimated about 9 million, while Iceland 's population is around 332,000.  
4.190.   The message from the reports also shows that trade is critical to Iceland 's economic. 
Imports and exports of goods and services reach to about 92% of GDP. We notice that 
merchandise exports still concentrate in fishery industry and aluminum manufacturing. We 
therefore encourage Iceland to continue diversifying its economic and trade regime.  
4.191.   According to the 2017 Global Peace Index, Iceland continues to be the safest country in 
the world. We believe that part of the reason makes Iceland peaceful is the policy of gender 
equality. Iceland leads an impact group to study ways to support gender equa lity in the field of 
trade as a member of the International Gender Champions Initiative. It inspires us how the gender 
equality and empowerment of women could benefit society stability, economic growth and 
prosperity.  
4.192.   Regarding WTO affairs, we commend Icel and to be a champion for multilateral trading 
system. It ratified Trade Facilitation Agreement in October 2016 and also accepted the WCO 's 
Revised Kyoto Convention in October 2015 which promoting simplification and harmonization of 
customs procedures. Icel and also joins several plurilateral initiatives, such as GPA, ITA, EGA and 
TiSA.  
4.193.   For us, although Iceland is not a major trade partner, it is becoming increasingly 
important. We believe that enhancing WTO commitments would increase the predictability of 
Iceland 's trade regime and attract more foreign investment. We look forward to busting bilateral 
trade volume and to cooperating in the multilateral trading arena with Iceland in the future.  
4.194.   In view of Iceland 's past achievement , we wish Iceland a successfu l Trade Policy R eview.  WT/TPR/M/361 • Iceland  
 
- 30 - 
 
  GEORGIA  
4.195.   With a small open economy and limited range of natural resources, trade is critically 
important to Iceland 's economy. Exports and imports of goods and services were the equivalent of 
over 90% of its GDP in 2016.  
4.196.   Since 2012, the country has continued to recover from the severe economic crisis that 
started in 2008. GDP growth averaged 3.8% for 2012 -16, while GDP per capita reached nearly 
US$60,000 in 2016. Growth during this period was driven by tourism -related services, while the 
contribution to GDP from the traditional fishing, fish processing, and aluminum sectors declined.  
4.197.   Georgia commends Iceland 's efforts for the new incentives on investment development as 
well as the significant improvement in customs procedures by intro ducing several new projects.   
4.198.   Bilateral trade between Georgia and Iceland has been demonstrating increasing trends 
reflected in 21% growth in trade turnover in 2016 as compared to previous year. The main 
commodities imported from Iceland are frozen fish, fish fillet, caviar and others.  
4.199.   Trade relations being even more liberalized and developed under the Free Trade 
Agreement between Georgia and EFTA States which entered into force for Iceland and Georgia in 
September this year, providing a significant instr ument with the potential to further strengthen 
economic ties and to promote more inclusive trade among the Parties.  
4.200.   In conclusion, we would like to underline that Iceland is valued partner of Georgia. We are 
convinced that the existing strong and amicable  cooperation will be further strengthened.  
4.201.   We wish Iceland a successful review.  
PAKISTAN  
4.202.   Pakistan and Iceland maintain cordial diplomatic relations. Pakistan and EFTA countries are 
currently undergoing discussions on mutually beneficial trade arrangements .  
4.203.   Since 2012, the country has continued to recover from severe economic crisis that started 
in 2008. GDP growth averaged 3.8% for 2012 -16, while GDP per capita reached nearly US$60,000 
in 2016. Growth during this period was driven by tourism -related servi ces while the contribution to 
GDP from the traditional fishing, fish processing, and aluminium sectors declined. Short term 
exposure to external factors has been reduced: at end -2016, total external debt  was 
US$23.4  billion compared to US$105.8 billion in 2012.  
4.204.   Trade remains important but the range of exports is limited to tourism, fish and fish 
products, and aluminium and products thereof.  
4.205.   Hydro and thermal power sources are abundant in Iceland and electricity prices for 
industrial consumers are the lowes t in the EEA. As a result, energy intensive industries, such as 
aluminium production, have been established and aluminium and alloys thereof represent over 
one-third of total exports of goods (US$1.5 billion).  
4.206.   It is heartening to learn that Tourism has in creased considerably since 2010 and, in 2016, 
represented about 10% of GDP and nearly 40% of export receipts for goods and services. Total 
spending on tourism -related activities increased from ISK 93 billion in 2009 to ISK 222 billion in 
2015.  
4.207.   Pakistan app reciates that virtually, all the temporary restrictions on certain types of cross -
border capital transfers and foreign exchange transactions that were introduced following the 
collapse of the banking sector have been removed. A capital account liberalizati on strategy was 
introduced in 2015 and controls were progressively reduced. In March 2017, restrictions on foreign 
exchange transactions and cross -border movement of domestic and foreign currency were largely 
lifted.  WT/TPR/M/361 • Iceland  
 
- 31 - 
 
  4.208.   Since 2012, several projects have been implemented to improve customs procedures, 
including the introduction of a risk management system, and the introduction of a quality control 
system. In addition, work is under way on the establishment of an authorized economic operator 
programme, a single window system, implementation of the revised single administrative 
document, and an electronic system for the clearance of vessels. Iceland has submitted its 
instrument of ratification of the Trade Facilitation Agreement to the WTO on 31 October 2016.  
4.209.   Nearly 90% of tariff lines are now duty -free compared to 70% in 2012. The overall average 
tariff fell from 8.3% in 2012 to 4.6% in 2017. About 95% of tariff lines are bound.  
4.210.   Pakistan appreciates that incentives for regional investment are provided for under ne w 
legislation; the previous legislation expired at the end of 2013. Under the new legislation, tax 
incentives apply for investments outside the Reykjavik area which are limited to 15 -35% of the 
initial investment depending on the size of the enterprise wit h the higher limits applying to smaller 
enterprises. In addition, there are incentives for research and investment through tax credits and 
grants. Iceland has improved trading and investment conditions since 2012 and partly as a result 
of this the economy has recovered and is expanding rapidly.  
4.211.   It is noteworthy that t he Intellectual Property Policy  2016-2022, issued in 2016, put 
forward a number of proposals to review laws, promote the role of IP in the economy, and improve 
procedures for registration and enforcement of IP rights. The new act and regulation on GIs apply 
to food, wine, spirit drinks, and some other products. The product name may be protected if the 
product originates from a specific area, has qualities or characteristics of the area, and the  
production, processing and preparation of the product takes place in the area.  
4.212.   Pakistan commends Iceland 's recent financial services performance. Since the financial 
crisis, the banking system has stabilized and recovered. The restructuring of the banks has also 
resulted in the ratio of non -performing loans to total loans declining from a peak of 20% in 2010 
to 2.1% in 2016. During the review period, several regulatory changes were introduced including 
the establishment of new bodies to assess the financi al system, systemic risk, and financial 
stability and formulate policies. In addition, several other measures, including new liquidity rules, 
funding ratios, capital buffers, and rules relating to consumer mortgage credit were introduced.  
4.213.   Here at the WTO i n Geneva we want to appreciate the efforts of Iceland in upholding the 
true values of the multilateral trading system, and in that regard the efforts of H.E. Mr Ho ̈gni 
S. Kristjánsson, Iceland Ambassador to the WT O are particularly noteworthy. Furthermore, the 
active engagement of Iceland under the leadership of H.E. Mr Ho ̈gni S. Kristjánsson in the 
discussion on Trade and Gender is truly commendable.  
4.214.   In the end,  we would like to wish Iceland a very fruitful and successful TPR.  WT/TPR/M/361 • Iceland  
 
- 32 - 
 
  5  REPLIES BY THE REPRE SENTATIVE OF ICELAND  AND ADDITIONAL COMME NTS 
5.1.  First of all, let me thank our distinguished Di scussant Ambassador Álvaro Cedeñ o Molinari for 
his very interesting, inspiri ng and eloquent statement last Wednesday. We are particularly thankful 
for his comprehensive understandi ng of Iceland 's trade policy. And, on a more personal note, me 
and my delegation wish you a happy birthday.  
5.2.  I would also like to thank Members for their  active and constructive participation in the 
meeting on Wednesday. Iceland is grateful for the many welcoming and positive remarks made by 
the membership. We especially welcome the positive feedback from Members on including a 
section on gender equality i n the Trade Policy Review. We also took note of the concerns raised by 
Members in some areas and will consider these carefully . We will respond to any follow -up 
questions received within the set time limit.  
5.3.  I will focus my intervention on the main themes w e identified from M ember 's interventions.  
5.4.  First, on the economic situation and concerns related to an overheating of the economy. The 
Icelandic economy has fully recovered from the crisis in 2008. Despite the rapid growth, the 
internal and external balanc e of the economy appears solid and the risk  of overheating is 
diminishing.  As mentioned on Wednesday, the labo ur market is flexible and open to influx of 
foreign labo ur. The large share of foreign workers has increased the potential output and 
contributed to preventing overheating and high inflation. The Icelandic workforce is also 
geographically mobile, which also counterbalances the labo ur market in times of crisis.  
5.5.  There were also many comments related to the tourism sector in Iceland and its importance  
to the economy. Iceland welcomes the diversification of the export sector, and tourism is an 
important addition to the real economy. The surge in tourist numbers has boosted the economy, 
helping to unwind some of the impacts of the financial crisis. The o utlook now is for a slower and 
perhaps more sustainable growth in tourist numbers in the coming years.  
5.6.  Many expressed an interest in hearing how Iceland intends to address tourism going forward. 
Iceland is also keen to learn from other countries such as Co sta Rica, which has an  exemplary 
approach to tourism.  
5.7.  It is clear that tourism requires a whole -of-government approach. A Road Map for Tourism in 
Iceland 2015 -2020 emphasizes seven key priority tasks: coordination, positive visitors experience, 
reliable da ta, nature conservation, skills and quality, increased profitability and better domestic 
distribution of visitors. In order to reach the goals , a special Tourism Task Force was established in 
2015 to coordinate the actions of various stakeholders, both pub lic and private.  
5.8.  To promote a more sustainable growth of tourism and increase the resilience of the economy 
in the event of an  adverse shock to tourism, the G overnment is furthermore implementing some 
tax measures. As already  mentioned , the G overnment has proposed moving accommodation and 
most other tourism -related services from the reduced VAT rate to the standard rate. In addition, 
the accommodation tax was augmented recently from ISK 100 to ISK 300 ( €0.78 to €2.34) per 
night. Furthermore, an increasing p ercentage of the public budget is diverted to the sector 
according to the 5 -year government budget plan focusing on investment, research and regional 
promotion.  
Investment restrictions.  
5.9.  A number of delegations raised the issue of investment restrictions in  certain sectors. The 
fact is that Iceland maintains a very open and liberal investment regime for investors. However, 
we do maintain sector -specific restrictions in a handful of sensitive sectors, namely fisheries, 
energy, real estate and air transport. C urrently , Iceland has no plans to further liberalize 
investments in these sectors beyond the measures currently in place. The basis of the foreign 
investment policy regarding real estate was , however , studied by a working group in 2014.  WT/TPR/M/361 • Iceland  
 
- 33 - 
 
  The effects of el imination of tariffs on non -agricultural goods  
5.10.   We were pleased to receive such positive feedback regarding the abolishing of tariffs on 
non-agricultural goods as well as many agricultural goods. We would like to use the oppo rtunity to 
encourage other WTO M embers to consider following the same path.  
5.11.   The University of Iceland Institute of Economic Studies recently issued a report on the 
effects of tariff and commodity tax elimination and VAT rate changes. The main findings are that 
retail price of all the goo ds that the Institute used in its assessment decreased following the 
changes. The Icelandic consumer benefited from these changes and Icelandic importers, 
wholesalers and retailers enjoy a stronger position when it comes to international competition. The 
measures have been well received by economic operators and consumers in Iceland. To date, no 
negative remarks have been made as regards to the unilateral tariff elimination and the 
abolishment of the general commodity tax. The VAT rate change , however, whic h included an 
increase of the reduced rate, has enjoyed a more mixed reception.  
Agriculture/tariffs  
5.12.   As mentioned in the opening statement on Wednesday, Iceland has taken bold movements 
towards more free trade and increased market access. The fact is that I celand has eliminated 
tariffs on 90% of the tariff lines - that is on all but the most sensitive agricultural goods, and 
significant steps have been taken in increasing market access on the most sensitive products, by 
increased bilateral tariff quotas.  
Notifications  
5.13.   Many delegat ions raised concerns on Iceland 's mixed record on notifications. As we 
acknowledged in our opening statement , we are aware that we must do better on that front. 
Iceland will work with the Secretariat over the coming months to try to improve our record. Part of 
this work will involve organizing the procedures on notifications, in order to fulfil Iceland 's 
obligations. As I stated on Wednesday , enhanced transparency is in Iceland 's point of view a vital 
objective of the multilateral tra ding system. In this spirit , we would also encourage that the 
notification procedures be made more user -friendly and accessible, as this would strongly support 
our efforts in complying with the notification commitments and , in fact , be beneficial for the w hole 
notification system as such.  
Compliance cost s 
5.14.   Compliance costs were raised by a number of delegations. Iceland intends to look further 
into this issue. Although Iceland ranks high in the World Bank 's Ease of Doing Business indicators , 
we have some re servations relating to the Bank 's conclusions as regards compliance costs in 
Iceland. According to the estimates of the Icelandic Directorate of Customs , the costs amount to 
about US$140 which is much lower than the US$655 estimated by the Bank. According to its 2020 
report , the Directorate of Customs will maintain a strong focus on the efficiency of customs 
procedures.  
Action plan for transforming energy use  
5.15.   Iceland 's policy on renewable energy and the reduction of fossil fuel use was mentioned. On 
that m atter, it should be noted that last June the Parliament approved a resolution setting out an 
action plan for transforming energy use, that is to say - the replacement of fossil fuels with 
renewable energies. The plan spells out six objectives that are to b e achieved through twenty -four 
different measures, including  a strong increase in the use of renewable energy, incentivized 
decrease of fossil fuel use, sufficient infrastructure for distribution of renewable energy, energy 
conservation, cooperation and R& D, innovation and international  cooperation. Accordingly, the 
Government has introduced a plan to raise the carbon tax on fossil fuels by a 100% in 2018, 
equalize excise duty rates on petrol and diesel and extend the duration and scope of VAT 
exemptions fo r electric vehicles and hydrogen cars. Iceland currently rates second in Europe when 
it comes to market share in electric vehicles. We continue to work on developing further measures 
to achieve the objectives under the action plan on transforming energy us e, as well as on action WT/TPR/M/361 • Iceland  
 
- 34 - 
 
  plans to ensure that Iceland will be able to hono ur its obligations under the Paris Climate 
Agreement.  
Iceland and WTO  
5.16.   As clearly stated in my statement on Wednesday , Iceland remains strongly committed to the 
internationa l trading system and this very O rganization. It is in the benefit of all, that the WTO 
remains the center pillar of international trade agreements. Furthermore, the importance of the 
WTO Dispute Settlement procedures cannot be emphasized strongly enough. In that con text, the 
situation we are facing, with lack of decision taking with regard to nominations to the Appellate 
Body, should be of particular concern to the whole membership.  
5.17.   Turning to MC11 , we remain focused on reaching a substantive outcome in Buenos Aires.  At 
the same time, we are realistic. We still believe that an outcome on fisheries subsidies is doable 
and urge the whole membership to put extra efforts into the negotiations on that topic over the 
coming weeks. We remain engaged and committed and would l ike to see an ambitious outcome in 
December. Our leaders have tasked us to perform on this issue – to the benefit of the whole world 
and future generations – we must deliver. As to other issues , we believe it is imperative, that if 
there will be no substan tive outcome at MC11, that the membership must work out and agree to, 
forward looking objectives for the work in t his Organization over the next two years.  
5.18.   Finally, let me highlight the ongoing work on Gender and Trade. We were particularly 
encouraged by t he many statements given last Wednesday on this issue. Gender is truly becoming 
more central when it comes to trade policy as we realize the potential inclusive trade policies can 
bring to increasing gender equality and women 's empowerment – as well as the  added economic 
benefits it brings.  
5.19.   It was mentioned here also that Iceland and a number of other delegations and actors are 
at the moment reaching out to the WTO membership to gather support for adopting a Joint 
Declaration on Trade and Women 's Economic E mpowerment in the margins of MC11. This 
declaration is about working together to look at facts, figures and measures that may be taken to 
empower women in trade for the economic benefit of our countries and the international trading 
system. The objective o f the joint declaration is to provide a framework and platform for Members 
to foster a more inclusive trade agenda that ensures trade benefits  to all. Through the declaration, 
WTO M embers will send a strong signal of their backing for inclusive economic gr owth and of their 
intention to work together to support greater integration of women into the global economy. I 
would like to use thi s opportunity to encourage all M embers to join this important initiative.  
5.20.   Finally, Mr. Chairman, I must reiterate my gratit ude to you, our dis cussant, Ambassador 
Álvaro Cedeñ o Molinari, all participating delegations and the WTO Secretariat.  Thank you.  
DISCUSSANT  
5.21.   Thank you very much. I am very pleased to be here again. I haven 't prepared a proper 
statement like I did last Wedne sday but I do have some reflections that I would like to share. Let 
me get on with them.  
5.22.   The first one is regarding notifications. There is a mixed picture with regard to this topic and 
there is a call from Members to improve Iceland 's performance in this area. 
5.23.   Number two, it is evident that Iceland has a very  dynamic trade agenda, bilateral ly and 
regional ly. This level of activity shows how important international trade is for Iceland.  
5.24.   Number three, on that same line, Iceland 's reliance on international tr ade to s ustain their 
good quality of lif e is the best example of how a small nation that wants to develop has no choice 
but to be open and embrace free trade. This is something that Costa Rica is absolutely empathetic 
about.  
5.25.   Number four, the great benefits  of trade must be sustainable and they must be shared fairly 
among all citizens.  This is something that one of our Members mentioned during Wednesday 's 
session. I would like to say that when it comes to sustainability and equality and distribution of WT/TPR/M/361 • Iceland  
 
- 35 - 
 
  benef its and especially those are the benefits that result from free trade, the whole world is 
watching and the whole world is following Iceland 's leadership, especially when it comes to gender.  
5.26.   Number five, r egarding fisheries management, it is clear that the rest of the world has 
lessons to learn from Iceland, and that the WTO can have a role to play in the dissemination or 
globalization of some of these policies and practices .  
5.27.   Number six, Iceland has proven the famous quote "do not let a good cris is go to wa ste". 
And I ask myself and I ask you if Brexit might be Iceland 's next good crisis.  
5.28.   Number seven, again o n gender and trade, both are sides of the same coin and that coin is 
peace. It is no surprise that one of the most advanced nations in gender equality ranks number 
one in the global peace index for a second consecutive year.  Congratulations on that. I would say 
that gender and peace are part of the same virtuous cycle. Gender equality leads to peace and 
peace leads to greater gender equality.  
5.29.   Number eigh t, regarding renewable energies, as new technologies arise, given Iceland 's 
geographic location, one wonders if the solar revolution that is spreading around the world will 
reach the dark North and one also wonders if all the volcanic energy can be used to  manufacture 
batteries or electric vehicles or other energy intensive environmental goods.  
5.30.   Number nine, regarding tourism, sustainability is a balancing act to preserve nature while 
interacting with it. Designing infrastructure to allow tourists to enjoy n ature while preserving it is 
Iceland 's number one challenge in this regard.  A few ideas that I have collected from around the 
world, I 've seen many national parks in Australia that have built very beautiful boardwalks in 
national parks so that tourists don 't step on fragile ecosystems, and at the same time, being inside 
the ecosystem and taking beautiful pictures. In New Zealand they have this camper van as a 
tourist attraction. So that p eople don 't need to sleep in real estate, people sleep in a mobile 
facility. This has a lower pressure on the physical built infrastructure. In Costa Rica, our most 
visited national park is at the beach, it is called Manuel Antonio, tourists are not allowed to come 
in with certain types of food, especially junk food and alco hol because the animals that we have 
are going to steal your food and this food is not good for them. So that is why you are not allowed 
to bring them in. Another idea in terms of natural capita l, I understand forests are not necessarily 
a big thing in Ice land, I 've even heard jokes about it, but this is not the time for jokes. But it 
makes me wonder if this heavy influx  of tourists could spark the possibility of Iceland becoming a 
leader in carbon neutral tourism. The kind of tourism that actually improves  the quality of the 
ecosystem, maybe not in Iceland itself but in some other locations around the world. In Costa 
Rica, for the last 30  years, we have had several different examples of payment for environmental 
services and one of them is charging a very s mall surcharge to tourists that is then used to plant 
new forests. And I was not thinking about Costa Rica when I thought about a tropical location for 
Iceland to grow their ecosystems because our ecosystems are reaching their limit of growth but 
there are  many locations around the world where you could have this dynamic of building literally 
natural infrastructure with a very small portion that tourists that come to Iceland are willing to 
pay. 
5.31.   Number ten, o ne of the main challenges identified is how to div ersify the export matri x both 
in markets and products.  Tourism and transport services have played a critical role for Iceland 's 
economy and i t is expected to continue being the case. Nevertheless, there are some situations 
that have to be taken into accoun t to become a sustainable source of development:  the seasonal 
nature of tourism and  also the inherent risks of being a very active volcanic island  when you have 
such an important airport hub . When I saw this problem, I immediately thought of what will 
happen when airplanes are all electric or solar. Then it is not going to matter if there is a volcanic 
eruption in Iceland, you still are going to manage to fly in there. So it made me think that it is an 
interesting opportunity for Iceland to try to make sure  that the first commercial electric flight in 
the world lands in Iceland and I hope I am in it.   
5.32.   Last but not least, I wish to congratulate Ms Unnur Orradóttir Ramette, head of the 
delegation, for a very successful exercise and also thank all of you, Icela ndic friends, for your 
welcoming and friendliness. And really last, I want to wish farewell  and good luck to my very good 
friend, Ambassador  Kristjánsson, you and I became friends the day you arrived and I am very 
honoured by that, so I wish you good luck and I hope we can meet again somewhere. Thank you.  WT/TPR/M/361 • Iceland  
 
- 36 - 
 
  UNITED  STATES  
5.33.   The United States would like to thank the delegation of Iceland for answers to our 
previously submitted written questions, and to sincerely express our appreciation for the 
constructive work that went into the TPR process and to overall preparation by everyone, including 
the Secretariat for this Trade Policy Review. Thank you as well to Director General Ramette for her 
statement this morning and Ambassador Molinari fo r his very capable insight s as d iscussant.  
5.34.   The United States very much appreciates its relationship with Iceland, we place great 
importance on our partnership and collaboration  between delegations at the WTO, and we thank 
Iceland for the leadership it has provided through the years . 
5.35.   We have submitted follow -up questions through the Secretariat, including to better 
understand Iceland 's process for notifications for the TBT and SPS Committees, as well as to 
understand Iceland 's food safety measures and the updates it is making to its intellectual property 
and copyright systems. We look forward to receiving written answers to those questions in due 
course. We would respectfully urge the Government of Iceland to address outstanding notifications 
here at the WTO.  
5.36.   The United States looks f orward to continued active cooperation with Iceland as a valued 
partner here in Geneva and elsewhere, and trusts that everyone holds the TPR as a valuable 
examination exercise. Please accept our best regards and our wish for safe travels to those 
returning  to capital.  
EUROPEAN  UNION  
5.37.   The EU would like to thank the delegation of Iceland for the comprehensive overview of the 
recent economic developments in Iceland presented on Wednesday and this morning that have 
provided a good opportunity to gain a better un derstanding of the main development occurred 
during the period under review and also to assess the trade and investment climate in Iceland.  
5.38.   The EU appreciates the timely replies provided to our questions and we confirm that we do 
not have any follow -up que stions.  WT/TPR/M/361 • Iceland  
 
- 37 - 
 
  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The fifth Trade Policy Review of Iceland has offered us a good opportunity to deepen our 
understanding and appreciation of this island economy that is heavily reliant on international trade 
and investment for its growth and economic performance. I would like to thank the delegation 
from Iceland, led by the Director -General Ms. Unnur Orradóttir Ramette, our discussant , 
Ambassador Alvaro Cedeño Molinari of Costa Rica and the 25 delegations that took the floor for  
their valuable contributions to this Review.  
6.2.  Since the last review in 2012, there have been a number of significant developments in the 
economic and trade policies of Iceland. At that time, Iceland was recovering from the severe 
economic crisis caused by  the collapse of the banking system. Five years later, we now see that 
Iceland has managed a remarkable turnaround in its economy and is now outperforming many 
other developed countries to become the OECD 's fastest growing economy. Furthermore, while 
dealing with the crisis, Iceland did not resort to protectionist measures. Indeed, the recovery was 
helped by maintaining a liberal trade regime. Members noted positively that nearly all capital 
controls imposed at the start of the crisis have now been lifted. Furthermore, the banking system 
has stabilized under tighter regulation and increased surveillance . 
6.3.  At the last review, some Members highlighted that Iceland 's merchandise exports were highly 
concentrated, both in terms of products and markets, and they en couraged diversification. To 
some extent, this has not happened for trade of goods. However, recent growth was achieved, 
despite low prices for traditional exports of fish and aluminium and the appreciation of the króna, 
partly because of the significant g rowth in tourism as a result of Iceland 's unique landscape, 
improvements in transportation, and favourable tax and other polic ies. While this was noted as a 
positive trend, it was suggested that the economy might be showing signs of overheating, and that 
the rapid rise of tourism could present challenges in areas such as infrastructure development as 
well as concerns about possible damage to the environment. Furthermore, it was also stressed 
that, while tourism is now an important pillar to the economy, mor e diversification could decrease 
Iceland 's vulnerabilities to external shocks.  
6.4.  As an island nation with a narrow range of natural resources, trade has always been 
important to Iceland. As several Members noted, imports and exports of goods and services wer e 
the equivalent of 90% of Iceland 's GDP and the authorities have taken, or are taking, steps to 
further improve trading conditions, especially through unilaterally removing the remaining tariffs 
on non -agricultural products and improving customs procedure s. In addition, on its own behalf and 
through EFTA, Iceland has expanded its network of trade agreements and deepened existing ones, 
such as the agreement with the EU on agricultural products.  
6.5.  Members recognized that Iceland has always been an active and constructive Member of the 
WTO and praised its commitment to the multilateral trading system and the WTO 's work. 
Furthermore, Iceland has demonstrated its commitment to new WTO agreements through its 
ratification of the Trade Facilitation Agreement and the  TRIPs amendment. It was also noted in the 
statement by Iceland that it is working on the last legal provision required to implement the 
agreement on the elimination of agricultural export subsidies reached at the Nairobi Ministerial 
Conference. Iceland ha s also fully implemented the revised Agreement on Government 
Procurement and the expanded Information Technology Agreement.  
6.6.  Looking ahead, especially to the Eleventh Ministerial Conference in Buenos Aires, Members 
encouraged Iceland to continue its active  role, particularly with respect to fisheries subsidies, and 
its constructive approach in supporting the WTO work in other areas such as ser vices and 
environmental goods.  
6.7.  While Iceland was commended for the many steps taken to liberalize trade and for its work in 
the WTO, Members identifie d some areas for improvements. While most tariffs have been 
eliminated and 90% of tariff lines are now duty -free, there remain a number of significant tariff 
peaks and non -ad valorem  tariffs applied in the agriculture sect or, in particular for meat and dairy. 
In addition, some Members expressed concern about the high levels of domestic support for 
agriculture and the use of stringent SPS measures, which include prohibition s on imports of some 
products.  WT/TPR/M/361 • Iceland  
 
- 38 - 
 
  6.8.  Compliance with WTO n otification obligations was another important area where Members 
sought improvements from Iceland. Iceland had made a number of recent notifications in areas 
such as government procurement, domestic support for agriculture, and state trading enterprises, 
but there still remain a number of areas where notifications were outstanding.  Members were 
particularly interested in receiving updated notifications in the areas of TBT, SPS, preferential rules 
of origin, and import licensing.  We have taken note of the st atement made by Iceland 's delegation 
during the first day of the review and today as it expressed its intention to rectify this situation.  
6.9.  Iceland remains largely open to foreign investment, but it was noted that restrictions remain 
in some areas, particul arly fisheries, energy, a ir transport, and real estate. Several Members 
encouraged Iceland to open these areas to foreign investment. Some Members also asked for 
more information on Iceland 's investment incentives and their impact on the promotion of forei gn 
investment.  
6.10.   It was clear from the discussion that Iceland is not alone in recognizing the importance of 
trade and gender equality issues. In the Government report, Iceland took the initiative of including 
a section on trade and gender which prompted an interesting discussion and questions on the 
matter. It was noted that gender equality and women 's empowerment have considerable potential 
to improve economic growth and tr ade to the benefit of everyone. Several M embers praised 
Iceland for its leadership ro le in incorporating women in all levels of society, integrating gender 
issues in trade and other policies, and pledging to eradicate the gender pay -gap by 2022.  
6.11.   In conclusion, Members appreciated Iceland 's commitment to the multilateral trading 
system and  that it maintained an open economy in terms of trade and investment. Iceland has 
provided replies to all the nearly 200 advance questions raised by Members. I am sure that Iceland 
will take into account the constructive comments made during this Revie w for any future trade 
reform. I would like to thank all those that participated in our discussion and we look forward to 
receiving the answers to the follow -up questions within the next month, at which point the Review 
will be successfully concluded.  
________ __