RESTRICTED  
  
WT/TPR/W/ 138 
10 November 2017  
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Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma orig inal solamente . 
  ICELAND  
DRAFT MINUTES  OF THE MEETING* HELD ON 4 AND 6 OCTOBER 2017  
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blan quart@wto.org , or to  tprd@wto.org ) no later 
than 24 November 2017 . 
 
Organe d'examen des politiques commerciales  
 
ISLANDE  
PROJET DE COMPTE REN DU DE LA RÉUNION* TENUE LES 4 ET 6 OCTOBRE 2017  
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 24 novembre 2017  au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
ISLANDIA  
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 4 Y 6 DE OCTUBRE DE 2017 
Las delegaciones pueden enviar a la Secretaría (Sr a. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 24 de noviembre de 2017  las 
correcciones fácticas que deseen introducir en sus propias declaraciones.  
 
 
_______________  
 WT/TPR/W/138  • Iceland  
 
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  TRAD E POLICY REVIEW  
ICELAND  
DRAFT  MINUTES OF THE MEETI NG 
Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia)  
CONTENTS  
 
1   INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ ......................  3 
2   OPENING STATEMENT BY  THE REPRESENTATIVE O F ICELAND  ................................ .... 5 
3   STATEMENT BY THE DIS CUSSANT  ................................ ................................ ...............  9 
4   STATE MENTS BY MEMBERS  ................................ ................................ ........................  13 
5   REPLIES BY THE REPRE SENTATIVE OF ICELAND  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  33 
6   CONCLUDING REMARKS B Y THE CHAIRP ERSON  ................................ ........................  38 
 
 
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/W/138  • Iceland  
 
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  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 Icela nd headed 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 n oted 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 Policy 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 contained in document WT/TPR/G/361 
and that of the WTO Secretariat in WT/TPR/S/36 1. 
1.4.  Questions 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 del egations 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 been 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 diversify 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 ec onomic growth. 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 t aken 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 remove d in March this year. 
Some of the questions submitted by Members for this TPR pointed to their interest in learning 
more about this process.  
1.8.  The Secretariat's report highlighted as a significant development Iceland'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 Secret ariat'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 to 4.6% in 2017. However, it added that tariffs on several 
agriculture product gr oups, particularly meat, dairy, plants and flowers remained high and often 
took the form of complex 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 remained 
strict. Agriculture continued to be an area of interest to Members 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/W/138  • Iceland  
 
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  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 principle of mutual recognition applies throughout 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 Are a. 
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 Icela nd was generally open to investment, restrictions remained 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 Members  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  government 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 o rigin, 
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 inte rest 
and relevance to the multilateral trading system. The Chairperson looked forward to an active and 
fruitful exchange.  WT/TPR/W/138  • Iceland  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F ICELAND (DIRECTOR GENERAL 
MS. UNNUR ORRADÓTTIR  RAMETTE)  
2.1.  It gives me great pleasure and hon our 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 m e also to thank the Secretariat for its thorough work and excellent collaboration in 
preparing 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 Membe rs as well 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 foreign policy. As a small island State, 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 domes tic businesses 
in world markets and to abolish barriers 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 t o this review. 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 wel l. 
2.7.  Iceland was particularly hard hit during the crisis. In October 2008, we suffered a dramatic 
banking crisis with 85% of the banking system collapsing within a week. This created significant 
turmoil in financial markets and in effect closed down the fore ign exchange 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%. O n 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 programme, 
developed in cooperation with the IMF with additional financing from the other N ordic countries, 
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 demand which 
was highly leveraged. This time, it is driven by export, private 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  introduced at 
the height of the 2008 crisis have been more or less fully removed, unemployment has reached its 
pre-crisis low, and the labour market remains very flexible and open to foreign labour with 
foreigners representing 10.3% of the labour 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 s ignificantly 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 ca pital controls, 
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 high levels of 
health and education spending. The poverty rate as well as income inequality is the lowest in the WT/TPR/W/138  • Iceland  
 
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  OECD and the gender equality is high. And looking ahead the economic growth is projected to 
remain fairly strong, thanks to continued vib rant tourism 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 believ e that we 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 introduc ed in 2015 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 t he pension fund 
system is largely funded with pension fund assets equalling about 160% of GDP.  
Main Features of Iceland's Trade Policy  
2.12.   Now I would like to give a brief overview 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 wher e the international 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 Member of the WTO and a strong supporter of the multilateral trading 
system, including the full implem entation of existing disciplines and commitments. Such a system 
is of particular importance for smaller Members, 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 T rade Facilitation 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 effo rts in fulfilling 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 Secretariat 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 more 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  international 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 th e membership 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 note, as noted in our Government report, wh ereas Iceland 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/W/138  • Iceland  
 
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  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 signed four 
free trade agreements with Bosnia and Herzegovina, the Central American States of Costa Rica, 
Panama and Guatemala, the Philippines and, finally, Georgia. At present, the EFTA network 
consists of 27 free trade agreements covering 38 countri es and several 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 Iceland 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 Bo dy. We think 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 exception. 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 a nd domestically. 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 th e gender dimension of 
trade and how trade policies affect women and men. We encourage other Members 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 addressing 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 of 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 sustainab le in the 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 export 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 rela ted 
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 revenues. Exports of services are 54.6% of all exports. Fisheries 
and aluminium sum up around 38% of the export values and the rest derives from other sectors 
including the international sector which is defi ned as industries 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 aluminium sectors have been doing quite well with favourable 
terms of tr ade, - export prices rose by 17% relative to trading partners in two -year period from 
2014 to 2016.  WT/TPR/W/138  • Iceland  
 
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  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 fisheries policy is the 
sustainable utilization 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 a nd other key commercial fish species are also close to historic 
highs.  
2.31.   After fish, aluminium 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  
aluminium 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 distances and the small home market. 
These challenges adversely affect the international price and cost -competitiveness of the 
agricultural sector, which is dependent on both direct support schemes 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 glob al environment for 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 potential 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 t his sector. 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 busines s environment that we have to solve to make it possible 
for the international sector to blossom.  
Closing remarks  
2.36.   Through the roller coaster ride Iceland has been on during the last decade, a few things 
have remained constant, including the notion of openne ss and cooperation. Through these 
challenging times, we sought to uphold our WTO commitments. These were never in question, any 
more than other international commitments. Iceland does best in close economic and trade 
cooperation with its partners, and is c ommitted to advancing the work of the World Trade 
Organization. Thank you.  WT/TPR/W/138  • Iceland  
 
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  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 delegation and to Ambassad or 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 kn own sagas, comprises myth; long, cold winters; intense volcanic 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 economy and t he traits 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 cherish 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 position in gender equality and has established the natio nal objective 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 equality. 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 average. 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 leader, 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 o f 
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 b alance requires 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 p rocess that 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 report, GDP 
per capita rose from around 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 extremely well in social 
indicators, with high living standards, low poverty, high inclusiveness and one of  the most 
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 aro und 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/W/138  • Iceland  
 
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  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 ess ential role 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 ar eas such as 
the expansion of the Information Technology Agreement, fisheries subsidies, the liberalization of 
trade in Services and in trade in environmental goods.  
3.10.   According to the report 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 GD P and the 
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 airplane 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 obligations. According 
to the Secretariat report, several amendments to the laws regarding SPS measures have been 
made during the review period. These regula tions remain 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 preferentia l 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 tar iff 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 repor t 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 an d with some Central American countries. It would be interesting to know more 
about the effect that these agreements - in conjunction with the elimination of all tariffs on 
non-agricultural goods in 2016 -had in the creation of new opportunities for Iceland ic exporters 
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 aluminum 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 ou tcome for 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 susta inability 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/W/138  • Iceland  
 
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  sustainability. The system provides fisher men 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 n ow 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 fishing 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 rest 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 development of the aluminum industry are closely 
related to the availability of Iceland's natural resources 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 Ic eland'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 accounted 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 expo rt sector, 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 popul ation and now represent 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 deve lopments 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 catc hes 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 inter national exposed sectors.4 It would be 
interesting to know the plans of the Icelandic Government 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. Man y 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 expansion prompt ed the Icelandic Government 
to develop in 2013 a Master Plan for Hydro and Geothermal Energy Resources. 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/W/138  • Iceland  
 
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  scientific analysis and wide public participation and provides, as the OECD has described it as "a 
valuable model for building consensus on complex 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 also relevant considering Iceland's 
climate change commitme nts under 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 Syste m would be key in that 
regard, considering 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, i t is from 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, the 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 en d, the Icelandic 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/W/138  • Iceland  
 
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  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 offer. 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 w ith Iceland 
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 inc reased trade 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 negotiation 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 Indon esia. 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 partner, after Liechtenstein and Switzerland, amongst the EFTA economies. To 
Indonesia, Iceland remains untapped for Indonesia n exports, 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 Icela nd'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 bilateral 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 Indonesi a, and acknowledges 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 qu estions. 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 qual ity of life.  WT/TPR/W/138  • Iceland  
 
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  4.11.   I must start by expressing our appreciation for Iceland's strong support for a fair, open and 
rules-based multilateral trading system, based on the WTO. Like Iceland, New Zealand sees this 
system as essential to our collective future prosperit y. We also 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 fish eries subsidies 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 i nvestment, simplify taxation, manage financial sector 
risk, and to improve 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 resting 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. Ic eland has 
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 agricultural 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 of 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 reco rd. 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 compl ete notifications 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 times. The economy is back on track and further 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.   Ante todo, es preciso felicitar a los representantes del Gobierno islandés por la ardua pero 
fructífera labor que realizaron para conjurar la crisis financiera de 2008. Tras varios años con 
déficit en su cuenta corriente en 2016 alcanzó un superávit del 8%  del PIB, así como una tasa de 
crecimiento promedio del 3,8% del PIB sostenida durante 4 años, dos indicadores que denotan 
una recuperación total de la crisis.  
4.18.   Este desempeño es particularmente admirable si se tiene en cuenta el grado de apertura de 
su ec onomía donde el comercio de bienes y servicios representan el 90% del PIB en 2016, se 
eliminaron todos los aranceles para productos no -agrícolas y una reducción sustancial de los 
aranceles aplicados a productos agropecuarios.  
4.19.   La apertura de su economía ha  llevado a Islandia a tener una participación y constructiva en 
el sistema multilateral de comercio. Fue socio fundador de la OMC, participó en las negociaciones 
sobre Telecomunicaciones, Servicios Financieros, y el Acuerdo de Tecnologías de la Información . 
Además, durante la Ronda de Doha ha contribuido en temas como servicios, propiedad intelectual, 
subvenciones a la pesca, liberalización del comercio de pescado y productos pesqueros. Islandia ya 
ratificó el Acuerdo de Facilitación del Comercio, y estamos  seguros de que prontamente hará los 
cambios legislativos necesarios para su implementación.  
4.20.   El régimen de inversión extranjera es otro aspecto que el informe de la Secretaria destaca 
de manera especial. Esta es un área donde Islandia ha avanzado sustanci almente y eliminó las WT/TPR/W/138  • Iceland  
 
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  restricciones cambiarias fruto de la crisis financiera. Existe todavía el reto de superar algunas 
restricciones en lo referente a la propiedad pública de empresas, la propiedad de bienes 
inmuebles, y la constitución de sociedades y em presas. También de mejorar la transparencia y 
funcionamiento de su sistema de autorización para las inversiones, aunque nuevamente la 
Secretaria destaca que el porcentaje de aprobaciones supera el 93% de las solicitudes.  
4.21.   En materia comercial, Islandia man tiene una estructura de exportaciones sensible a la 
volatilidad del mercado internacional, al estar compuesta principalmente por pescado, productos 
de pescado y aluminio y sus productos. Esta volatilidad se evidenció durante 2014 cuando inició un 
déficit d e la balanza comercial por la caída de los precios del aluminio. El informe de la Secretaria 
resalta como los ingresos nacionales no sufrieron gracias a un superávit en el comercio de 
servicios. No obstante, llamamos la atención sobre la dependencia que pu ede surgir de la 
concentración pues alrededor del 80% de los ingresos del país se generan en los subsectores de 
"transporte y viajes".  
4.22.   Un aspecto de especial interés para Colombia son los cambios que se están dando en el 
régimen aduanero. Vemos con aciert o como uno de los objetivos de su política comercial es el plan 
"Aduanas 2020" enfocado en fomentar la confianza, la cooperación y el progreso en todos los 
sectores aduaneros. Consideramos que ésta es una respuesta adecuada a las dificultades que 
señala el  informe sobre los altos costos de cumplimiento en frontera de las importaciones y las 
exportaciones, un reto que creemos requiere de especial atención para ser superado pues 
responde a la caída los ingresos aduaneros que disminuyó del 0,3% del PIB en 2014  al 0,21% del 
PIB en 2016 debido a la eliminación de aranceles en productos no -agrícolas.  
4.23.   Quisiera finalizar resaltando el interés de Colombia en profundizar las relaciones económicas 
con Islandia, un socio comercial que consideramos estratégico para los intereses de nuestra 
agricultura e industria y con quien tenemos un Acuerdo Comercial (dentro del marco del AELC) 
vigente desde 2011. En la actualidad, el intercambio comercial es muy bajo y de manera agregada 
no supera los 3 millones de dólares EE.UU. Ade más, el comercio históricamente se ha concentrado 
en bienes primarios, donde las exportaciones colombianas se limitan al café y las exportaciones 
islandesas se componen principalmente a los productos derivados de la pesca.  
4.24.   Le deseamos a Islandia el mayor d e los éxitos en su examen de Política Comercial y 
animamos al Embajador Kristjánsson y a su Misión a continuar su rol activo al interior de la OMC 
en pro de un mejor funcionamiento del sistema multilateral de comercio.  
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 implies 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 economi c, trade and monetary policies 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 par tners.  
4.30.   Now, I would like to touch upon the specific points that Japan is interested in regarding the 
Icelandic economy.  WT/TPR/W/138  • Iceland  
 
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  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 eco nomic crisis has been abolished. 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 accounts 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, Iceland 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 still 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 Ga p 
Report". Japan would like 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.  
EUROP EAN  UNION  
4.38.   The EU would like 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 eff orts undertaken by Iceland 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 trade 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 t he 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 a nd 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 fre e trade as also demonstrated 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 Organisation. 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 conc luding a multilateral agreement 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 approac h to trade policy issues at the domestic level.  WT/TPR/W/138  • Iceland  
 
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  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 re view.  
4.45.   Within this general 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, am ong others, on meat and milk 
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 cap ital control measures were 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 exchanges 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 multilateral 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 co ntribution to all these negotiations 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 thank s to key sectors and we encourage Iceland to continue 
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, the 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 s igning 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 doing 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 valuab le 
bilateral trade relationship. 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 trade 
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 d ifficulties, 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 subm itted 
questions to Iceland and we take this opportunity to thank Iceland for the responses it provided 
last week to these questions.  WT/TPR/W/138  • Iceland  
 
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  4.54.   In addition to those questions, we would like to receive clarifications regarding the 
Secretariat Report on the Trade and I nvestment Regime, more specifically 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, aid 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 in centives pursuant to the 
EEA. 
4.55.   Like Iceland, Canada recognizes the importance of ensuring 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 tha nkful to Iceland for sharing 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 equality 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 prospe rity that can 
flow from our 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 wish 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 and 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 million from 2015, encompassing a wide r ange of products including inorganic 
chemicals, mineral fuels, aircraft, optical and medical instruments, and many other products.  
4.57.   While Iceland maintains a relatively liberal trade and investment regime, there are areas 
where Iceland could make further im provements and we have highlighted some of those 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 p ests and diseases, leading 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 imported products. We also look forward to a dditional information on 
Iceland's practices regarding notification of SPS measures to the WTO, particularly with respect to 
amendments and technical legislation under the European Economic Area. Along these lines, we 
have asked questions in this TPR about  Iceland's public notification 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 appropri ate 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 regulations to 
the WTO TBT Committee. We would encourage Iceland to promptly 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 ma y provide comment, as outlined 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 com mon 
interests and our bilateral 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 Ch airpersons for negotiating bodies WT/TPR/W/138  • Iceland  
 
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  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 wo rk closely with 
Iceland in 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 matter s 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 
increa se in alumina exports, growing 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 Po licy 
Review in 2012, particularly 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 acknowl edge the significant unilateral 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 aft ermath of the global 
financial crisis provide a useful example from which many other members, including 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. Australia 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 impro vements. 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 s upport amongst OECD countries. 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 t o 
economic reform and trade 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 in 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 averaged 3.8% during the review period I would applaud for the 
continuous recovery of Iceland, one of the country's worst affected 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 cust om WT/TPR/W/138  • Iceland  
 
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  procedures, new free trade 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 econ omic and social development.  
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 collaborate 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 between China and Iceland have 
been constantly deepened in recent  years, and the cooperation 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 utilization, 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 yea r. China remains the largest 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.   Nevertheless, 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 o f these areas and will encourage 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 open 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 effect ive disciplines for fisheries 
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 completio n of the procedures for becoming 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 pr oduction base and 
high reliance 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 an d stable growth and promote 
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 prog ress made by the authorities 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 wel l as the reduction of tariffs 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/W/138  • Iceland  
 
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  and the phasing out of certain entitlements. Although in general Icel and applies EU rules on food 
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, Iceland 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 qualit y 
control system, advances 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 procedures.   
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, severa l new FTAs entered into force 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 t he Republic of Moldova has 
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 between 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 produc ts are fish and derived products, 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 ex ports of Moldovan 
wine and 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 w ith EFTA 
countries. In this 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 signin g 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 attend 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 beha lf of my Ambassador, Tudor 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 Mold ova. 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 delegation of Iceland the utm ost success 
during its fifth 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/W/138  • Iceland  
 
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  Switzerland share a fruitful and close partnership as longstanding 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 Switzer land and Iceland are mutually 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. Ic eland's GDP growth since 2012 has been impressive as was the cutting in 
half of the 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 tra de of 
Iceland have improved 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 see m 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 aspect 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 in ternational competitiveness 
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. The 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 ec onomy'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 energi es. We will analyse the strategy 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 h as 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 
Iceland ic 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 realize that it might be difficult 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 pict ure.  
4.99.   In any event, Switzerland 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.   La Argentina elogia no sólo la recuperación económica de Islandia a pesar del impacto 
sufrido por la crisis de 2008, sino que también haber mantenido un crecimiento sólido, baja WT/TPR/W/138  • Iceland  
 
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  inflación, aumento de las reservas, superávit fiscal por cue nta corriente, descenso de los niveles 
de deuda pública y pleno empleo.  
4.101.   Es destacable el crecimiento del turismo en los últimos años. En 2016, representó cerca 
del 10% del PIB y casi el 40% de los ingresos por exportación de mercancías y servicios.  
4.102.   La Ar gentina valora las políticas de igualdad de género, que desde hace algunos años 
posicionan a Islandia como una de las sociedades más igualitarias según reportes del Foro 
Económico Mundial.  
4.103.   Destacamos especialmente la política comercial de Islandia de mant ener Acuerdos de Libre 
Comercio en el marco de la Asociación Europea de Libre Comercio (AELC) y sus objetivos de 
comercio internacional entre los que, para 2015 -2016 se consideró fortalecer la red de acuerdos 
de libre comercio, incluido el MERCOSUR.  
4.104.   Ademá s, tal como se ve reflejado en las preguntas efectuadas por nuestro país, otros 
ámbitos de nuestro interés son: los costos de cumplimiento en frontera de las importaciones y las 
exportaciones; el sistema de Operadores Económicos Autorizados y los procedimi entos previstos 
para que los operadores extranjeros puedan beneficiarse con esa condición; la Ley de Aduanas y la 
clasificación aduanera de las mercaderías; la cantidad de líneas arancelarias con tipos no 
ad-valorem  que mantiene Islandia; y las tasa que im plementa la Dirección de Aduanas para la 
tramitación y despacho de mercaderías.  
4.105.   Finalizando, reiteramos nuestro reconocimiento por esta nueva oportunidad de 
intercambiar opiniones y consideraciones sobre las políticas y prácticas comerciales de Islandia, y  
resaltamos -una vez más - la importancia de este ejercicio de transparencia en todos sus aspectos, 
deseando a las autoridades de Islandia la exitosa conclusión del presente examen.  
COSTA  RICA 
4.106.   Costa Rica reconoce el compromiso de Islandia con la OMC y al s istema multilateral de 
comercio. Efectivamente, el comercio internacional juega un papel fundamental en la economía de 
Islandia y ha sido un baluarte en momentos de crisis.  
4.107.   Hace menos de un mes, el Ministro de Comercio Exterior de Costa Rica, Sr. Alexander  
Mora, realizó una visita oficial a Islandia y comprobó in situ las excelentes condiciones de la 
economía islandesa y las razones que han llevado a este pequeño país a ser líderes en campos 
como el del manejo de los recursos pesqueros, la energía, el comer cio, la igualdad de género y las 
políticas de bienestar para su población.  
4.108.   Nos complace la entrada en vigor del Tratado de Libre Comercio, en septiembre de 2014, 
entre Islandia, como miembro de EFTA, y Costa Rica y Panamá. Con esto culminó el anhelo de 
muchos años de estrechar los lazos entre nuestros países. Esperamos que este Tratado permita 
dinamizar el comercio y la inversión, que siguen registrando flujos relativamente bajos, entre dos 
economías complementarias como la costarricense y la islandesa.  
4.109.   Al igual que otros que me han precedido, quisiéramos destacar la impresionante 
recuperación de la economía islandesa después de la crisis de 2008, producto en gran parte de un 
consenso político muy claro sobre los puntos esenciales de una economía de mercad o y el 
mantenimiento del estado de bienestar. Islandia ha reconocido el papel dinamizador del libre 
comercio para su economía, en particular para mejorar su competitividad y diversificar su oferta 
exportadora. La eliminación de los aranceles a los producto s industriales es una muestra de este 
compromiso, así como su participación en iniciativas plurilaterales como TiSA o EGA.  
4.110.   El informe de la Secretaría señala algunas notificaciones pendientes por parte de Islandia. 
Para Costa Rica es fundamental que todos los miembros de la OMC cumplan con las obligaciones 
de transparencia y confiamos en que Islandia tomará las acciones que le permitan mejorar su 
desempeño en este campo.  
4.111.   Costa Rica presentó varias preguntas sobre contratación pública, acuerdos bilaterales de 
inversión, medidas relativas a la inversión extranjera directa y servicios de transporte aéreo. Mi WT/TPR/W/138  • Iceland  
 
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  delegación agradece las respuestas a estas preguntas que fueron enviadas a mis autoridades en 
capital.  
ECUADOR  
4.112.   Participamos con especial interés en este E xamen de Políticas Comerciales, por las 
positivas y promisorias relaciones políticas, económicas y comerciales que se han mantenido entre 
Islandia y Ecuador.  
4.113.   Cabe mencionar que la próxima semana se llevará a cabo la cuarta ronda de negociaciones 
con la As ociación Europea de Libre Comercio, del cual Islandia es parte. A través de este 
mecanismo, los países buscamos complementar las economías en base a una balanza comercial 
favorable para las naciones. Los principales productos ecuatorianos que se exportan h acia los 
países del EFTA son las frutas, cacao, flores y metales preciosos; mientras que los insumos 
farmacéuticos representan más del 60% de las exportaciones del EFTA hacia el Ecuador.  
4.114.   En cuanto al informe presentado por la Secretaría, tomamos nota de qu e Islandia es una 
economía pequeña y abierta, con una población poco numerosa y dispone de una gama limitada 
de recursos naturales, a excepción de la energía y la pesca, por lo que el comercio reviste una 
importancia vital. Las importaciones y exportacione s de bienes y servicios representaron alrededor 
del 92% del PIB en 2016.  
4.115.   Cabe mencionar que entre 2012 y 2016, su PIB creció a un ritmo medio del 3,8% 
impulsado por los servicios relacionados con el turismo, mientras que la contribución al PIB de los 
sectores de la pesca tradicional, la elaboración de pescado y el aluminio se redujo.  
4.116.   Ecuador observa con interés que para solventar la crisis financiera, Islandia estableció 
restricciones temporales con respecto a determinados tipos de transferencias transfro nterizas de 
capital y de transacciones en divisas. Además, que estos controles de capital contribuyeron de 
forma importante a lograr y salvaguardar los objetivos de las medidas de política adoptadas por 
Islandia, a saber, estabilizar el tipo de cambio, ase gurar la sostenibilidad fiscal a medio plazo y 
elaborar una amplia estrategia de reestructuración bancaria. Controles de política pública que 
permitieron lograr sus objetivos.  
4.117.   Es importante anotar también que Islandia es parte de 32 Acuerdos preferenciale s 
recíprocos y, en el período objeto del examen, suscribió un ALC con China.  
4.118.   Ecuador reconoce que Islandia ha puesto en marcha mejoras en los procedimientos 
aduaneros, especialmente en la introducción de un sistema de gestión de riesgos; control de 
calidad ; establecimiento de un sistema de ventanilla única, entre otros. Además, ha presentado la 
ratificación del Acuerdo sobre Facilitación del Comercio de la OMC en octubre del año pasado.  
4.119.   Asimismo, destacamos que si bien Islandia ha eliminado los aranceles de  todos los 
productos no agropecuarios, aún mantiene elevados aranceles bajo la forma de complejos 
derechos no ad valorem  para varios grupos de productos agropecuarios como: la carne, lácteos, 
plantas y flores.  
4.120.   De otra parte, observamos con interés que Isl andia en virtud de una nueva Ley concede 
incentivos fiscales para la inversión regional en función del tamaño de las empresas. Además, 
prevén incentivos a la investigación y a la inversión en forma de bonificaciones fiscales y 
subvenciones.  
4.121.   Es importante a notar que si bien la participación de la pesca y elaboración de pescado al 
PIB de Islandia ha disminuido, existe una limitación al 25% de la participación extranjera directa y 
al 49% en caso de participación combinada directa e indirecta para este sector.  
4.122.   Para concluir, deseamos anticipar nuestro agradecimiento a la Delegación de Islandia por 
sus respuestas a las preguntas planteadas sobre algunos aspectos concretos de su política 
comercial que proveerá información importante para el fortalecimiento de las  relaciones bilaterales 
en materia de comercio exterior.  WT/TPR/W/138  • Iceland  
 
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  BRAZIL  
4.123.   It is a matter of great satisfaction for Brazil 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 rapidly stabilized the exchange rate and ensured fiscal sustainability, 
contributing to an accelerated economic expansion since then.  
4.124.   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 annual rate of 3.8% from 201 2 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.  
4.125.   On a less positive note, despite the zeroing of the applied tariffs on all non -agricultural 
products, the country keeps a high level of tariff protection on several 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 pea ks of up to an astonishing 461%.  
4.126.   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 obligatio ns. 
4.127.   Our bilateral relations with Iceland can be traced back to the arrival of the 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.  
4.128.   Bilateral trade relations have potential for growth. In 2015, bilateral trade flows totalled 
US$310 million but declined substantially since then. Brazilian exports to Iceland are basically 
made up of aluminum oxide while imports are mainly composed of ele ctrical appliances, fish, and 
aluminum sheets. There are certainly opportunities for diversification.  
4.129.   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.  
4.130.   Brazil and Iceland are also committed to strengthening economic relations and cooperation 
through the recently star ted 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 every area. We expec t 
further progress in the intersessional meeting that will be held in Argentina in October.  
4.131.   Brazil continues to follow with interest domestic developments in Iceland regarding its 
trade policy. We have submitted a question concerning tariffs on agricultura l products and we are 
thankful for the reply provided. Let me conclude by wishing the delegation of Iceland a successful 
Trade Policy Review.  
PERÚ  
4.132.   El Perú se alegra de los buenos resultados económicos de Islandia durante el período bajo 
examen, en particul ar en lo que respecta al aumento de la liberalización de su comercio, la 
recuperación de su economía, y el importante rol que viene tomando el turismo, es decir el 
comercio de servicios, en su economía. Notamos con satisfacción que las medidas tomadas para  
hacer frente a la crisis de 2008 no perduraron, demostrando la confianza de Islandia en la libertad 
de los intercambios económicos.  
4.133.   El Perú e Islandia tenemos una relación comercial que ha adoptado un marco jurídico 
específico gracias al acuerdo de Libre Comercio entre Perú y los Estados de la Asociación Europea 
de Libre Comercio, que incluye un acuerdo sobre productos agrícolas con Islandia. Notamos que la 
relación comercial bilateral con Islandia no se ha desarrollado de igual manera que con otros WT/TPR/W/138  • Iceland  
 
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  Estado s Partes en dicho acuerdo, rumbo que podemos analizar para considerar en qué puntos se 
podría mejorar. De otro lado, quisiéramos señalar que esperamos el pronto reinicio de las 
negociaciones del "Trade in Services Agreement" (TISA), en las que el Perú es P arte como 
Islandia.  
4.134.   Hemos planteado solamente dos preguntas para el presente examen, interesándonos por 
las cuestiones relativas a la promoción de la igualdad de género planteadas en los informes.  
4.135.   Agradecemos las oportunas respuestas de Islandia a nuestr as preguntas que nos permiten 
conocer buenas prácticas en materia de promoción de la igualdad de género, que analizaremos y 
consideraremos en detalle en su relación con nuestro contexto nacional en la materia.  
4.136.   Antes de terminar esta intervención, mi deleg ación quisiera expresar a Islandia sus 
mejores deseos de continuidad en su desarrollo económico y comercial, para lo cual cuenta con un 
socio en el Perú, y desearle también un exitoso Examen de sus Políticas Comerciales.  
PHILIPPINES  
4.137.   Iceland is one of the w ealthiest economies in the world with a population of just over 
330,000 people and a GDP per capita of more than € 50,000.  
4.138.   Given its small open economy and limited range of natural resources, trade is of vital 
importance to Iceland's economy. Internationa l trade is at the core of its economic and foreign 
policy.  
4.139.   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 c ountries that have recently concluded 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.  
4.140.   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 Icel and, on the 
other hand, are mackerel, spools, and rubber thread, among others.  
4.141.   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 i n the 
Philippines is a geothermal facility established by Orka Energy in the Visayas region.  
4.142.   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.  
4.143.   With the recently 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.  
4.144.   In closing, the Philippines would like to congratulate Director General Unnur Orradottir 
Ramette and Ambassador Hogni Kristjánsson for its 5th Trade Policy Review. We would also like to 
express our appreciation to Ambassador Alvaro Cedeño Molinari of Costa Rica for his insightful 
comments as discussant, and to the Secretariat for preparing a comprehensive report.  
SINGAPORE  
4.145.   Singapore and Iceland enjoy good trade relations which are facilitat ed by the EFTA -
Singapore Free Trade Agreement. The RTA entered into force in January 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 soo n. WT/TPR/W/138  • Iceland  
 
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  4.146.   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 go ods. 90% of all tariff lines are now 
duty free compared to 70% in 2012.  
4.147.   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 
electro nic system for the clearance of vessels.  
4.148.   At the WTO, Iceland is a firm supporter 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 a mending the TRIPS Agreement.  
4.149.   Iceland is also a participant of various MFN plurilaterals, 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 SP S over the period under review. We urge Iceland to 
make these notifications as soon as possible.  
4.150.   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.  
4.151.   We wish Iceland every success in its fifth Trade Policy Review . 
REPUBLIC  OF KOREA  
4.152.   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 between Korea and the EFTA in 2006.  
4.153.   The economic relationship between Korea and Iceland is positive and growing, 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.  
4.154.   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.  
4.155.   According to the Sec retariat's report, GDP growth averaged 3.8% for 2012 -16, while GDP 
per capita reached 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 su ch as 
fishing and energy.  
4.156.   In order to put the economy of Iceland on a more sustainable 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.  
4.157.   With a small open economy and limited range of natural resources, trade is very important 
to Iceland's economy.  
4.158.   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 and nearly 90% of all 
tariff lines are duty free.  
4.159.   As the Secretariat's report highlights, it is particularly noteworthy and commendable that 
Iceland did not introduce any protect ionist measures in the midst of the recent economic crisis. 
Iceland has also continued to make efforts to improve its Intellectual Property Rights (IPR).  
4.160.   In addition, since 2012, Iceland has implemented several projects to improve customs 
procedures inclu ding the introduction of a risk management system.   WT/TPR/W/138  • Iceland  
 
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  4.161.   Furthermore, we commend that Iceland has never used or initiated investigations for 
anti-dumping or countervailing duties, and export subsidies for agricultural products have not been 
used by Iceland sin ce 1998.  
4.162.   While we note that Iceland maintains a relatively liberal trade and investment regime, 
there are areas where Iceland could make further improvements.    
4.163.   We would like to encourage Iceland to continue to address the concerns of other Members 
in suc h matters as those regarding complex tariff regimes for some products, outstanding 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.  
4.164.   In par ticular, 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.  
4.165.   Korea is pleased to note the steps Iceland has taken since the last review to make t he 
overall trading and economic environment more efficient, and we certainly encourage Iceland to 
continue in the direction of facilitating trade, increasing investment, and enhancing the overall 
economic environment in a sustainable way.  
4.166.   Korea looks forw ard 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.  
4.167.   In closing, we would like to express once again appreciation to the delegation of Iceland 
for their hard work and wish them every success in this TPR.  
NORWAY  
4.168.   Iceland has experienced a remarkable turnaround since the 2008 crisis. Iceland is now 
developing its welfare state further. There are now opportun ities for the citizens and a belief in a 
prosperous future for the whole nation. Recently adjusted figures show that Iceland had an 
economic growth rate at 7.4% in 2016. The strong growth is mainly due to three features: 
exports, private consumption and in vestment. However, the strong growth also puts Iceland in a 
position of potentially overheating the economy.  
4.169.   Norway cooperates closely with Iceland in a number of trade -related areas. We share a 
strong commitment to the rules based multilateral trading sys tem with the WTO at its core. We 
work closely together in the negotiations and regular activities of the WTO, in the negotiations of 
free trade agreements in the framework of EFTA, and through the EEA Agreement.  
4.170.   Trade between our two countries is substanti al. In terms of merchandise goods, in 2016 
Norway accounted for 4.3% of Iceland's exports and 9.0% of Iceland's imports. During 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 th e EU and the European Economic Area are crucial to Iceland.  
4.171.   We note that tourism is now Iceland's largest export sector in terms of earnings, larger 
than the fishing industry and aluminium industry combined. The strong growth in tourism has had 
a considera ble positive influence on the Icelandic economy in recent years, but also brought 
challenges due to its impact on the environment, the housing market, the labour market and most 
infrastructures.  
4.172.   Norway and Iceland have many shared positions in terms of tra de policy, including in 
relation to agriculture. We cooperate closely within the G10 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 c hallenging climatic conditions.  
4.173.   Iceland naturally brings to any table its great expertise in fisheries. Iceland has done so 
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 WT/TPR/W/138  • Iceland  
 
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  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.  
4.174.   We comment Iceland for its leadership role as a gender champion. Like Iceland, Norway 
works to advance gender equality and women's empowerment horizontally in all areas of foreign 
and domestic policy, including trade policy. Both Norway and Iceland have exper ienced the 
economic benefits that increased gender equality brings. We look forward to further strengthening 
our work in this area with Iceland.  
4.175.   Iceland is an active player on the multilateral stage, and an important trading partner for 
Norway. We look for ward 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  
4.176.   Montenegro would like to associate itself with the statement of the European Union.  
4.177.   Monteneg ro wishes to draw attention to the positive reports of the WTO Secretariat and 
the Government of Iceland indicating that since Iceland's last Trade Policy Review in 2012, 
Iceland's economic position has improved significantly. Iceland was recovering from t he effects of 
the severe financial crisis that occurred in 2008. Since then GDP, growth averaged 3.8% for the 
2012-2016 with 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 investment condition.  
4.178.   Montenegro notes the strong role that tourism plays in Iceland's economy. As the 
Government of Iceland observes in its re port, 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 forecasts predict continued growth. As a State that highly relay on 
tourism, Montenegro expresses its particular interest in learning more about the Iceland's policies 
addressing the challenges linked to tourist industry high lighted in the Government report, 
including the major impact on the environment, labour market and infrastructure.  
4.179.   In addition, Montenegro welcomes the inclusion of a section on gender and trade in the 
Government of Iceland's report. We commend the commit ment 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 w ill continue to support Iceland's leadership in 
promoting gender dimension in trade in preparation of the MCXI with the view 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 Buenos Aires in December.  
4.180.   Iceland and Montenegro have strong bilateral relationship that stretches back to Iceland 
being the first Stat e to recognize Montenegro in 2006. Montenegro is very grateful to Iceland for 
its deep relationship, which now extends across important areas of trade, being capped by the free 
trade agreement that Montenegro shares with Iceland in its role as an EFTA memb er.  
4.181.   Finally, Montenegro is looking forward to continuing excellent and constructive 
engagement with the delegation of Iceland in Geneva. I would like to use this opportunity to 
express my sincere gratitude for excellent cooperation to my distinguished col league Ambassador 
Hogni Kriatjánsson and to wish him all the best in his future endeavours.    
4.182.   My delegation wishes Iceland every success in its fifth Trade Policy Review.  
INDIA  
4.183.   Iceland is a high income developed country 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 WT/TPR/W/138  • Iceland  
 
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  debt. The economy turned around after the financial cris es and registered an average 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 
the trade policies of Iceland ar e closely related to the European Union as Iceland is part of the 
internal market with free movement of goods, services, capital and workers. The key concerns for 
Iceland remain high dependency on trade concentrated on fish products and aluminium 
manufactu ring and efforts to diversify the economy. We commend the Government of Iceland for 
taking several measures to promote economic growth, consumption and investment including 
lifting capital controls, managing public finances and tax and customs reforms.  
4.184.   India and Iceland share close, warm and friendly relations. The trade between both 
countries though modest has considerable potential to grow in sectors like chemicals, textiles, 
energy equipment, machinery, pharmaceutics and Information Technology. Investmen ts from 
Iceland in India are also growing with the presence of companies from Iceland in areas like 
pharmaceuticals, energy, 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.  
4.185.   To conclude, we look forward to working closely with Iceland for further expanding our 
trade a nd investment 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. Kristjánsson and we wish 
the delegation of Iceland a productive and successful TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.186.   As mentioned in the Secretariat report, Iceland has eliminated tariffs on all non -
agricultural products in the beginning of 2017. Now, Iceland has nearly 90% duty -free tariff lines 
compared to 70% in 201 2, which is an inspiring progress. It proofs that Iceland is heading to 
being a more open economy and being as the champion of multilateral trading system.  
4.187.   Since the financial crisis in 2008, Iceland has rapidly recovered from the severe recession 
due to t he collapse of its banking sector. We admire the resilience of the Icelandic people. The 
effective financial policy and continued openness of the economy have turned the situation around. 
The tourism -related services contribute the major parts to its econo mic 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 Icelan d's population is around 332,000.  
4.188.   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 ind ustry and aluminum manufacturing. We 
therefore encourage Iceland to continue diversifying its economic and trade regime.  
4.189.   According to the 2017 Global Peace Index, Iceland continues to be the safest country in 
the world. We believe that part of the reason m akes Iceland peaceful is the policy of gender 
equality. Iceland leads an impact group to study ways to support gender equality in the field of 
trade as a member of the International Gender Champions Initiative. It inspires us how the gender 
equality and em powerment of women could benefit society stability, economic growth and 
prosperity.  
4.190.   Regarding WTO affairs, we commend Iceland to be a champion for multilateral trading 
system. It ratified Trade Facilitation Agreement in October 2016 and also accepted the W CO's 
Revised Kyoto Convention in October 2015 which promoting simplification and harmonization of 
customs procedures. Iceland also joins several plurilateral initiatives, such as GPA, ITA, EGA and 
TiSA.  
4.191.   For us, although Iceland is not a major trade partne r, 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.  WT/TPR/W/138  • Iceland  
 
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  4.192.   In view of Iceland's past achievement, we wish Iceland a successful Trade Policy Review.  
GEORGIA  
4.193.   With a small open economy and limited range of natural resources, trade is critically 
important to Icel and's economy. Exports and imports of goods and services were the equivalent of 
over 90% of its GDP in 2016.  
4.194.   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.  
4.195.   Georgia commends Iceland's effo rts for the new incentives on investment development as 
well as the significant improvement in customs procedures by introducing several new projects.   
4.196.   Bilateral trade between Georgia and Iceland has been demonstrating increasing trends 
reflected in 21% g rowth in trade turnover in 2016 as compared to previous year. The main 
commodities imported from Iceland are frozen fish, fish fillet, caviar and others.  
4.197.   Trade relations being even more liberalized and developed under the Free Trade 
Agreement between Geor gia and EFTA States which entered into force for Iceland and Georgia in 
September this year, providing a significant instrument with the potential to further strengthen 
economic ties and to promote more inclusive trade among the Parties.  
4.198.   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.  
4.199.   We wish Iceland a successful review.  
PAKISTAN  
4.200.   Pakistan and Iceland maintain cordial diplom atic relations. Pakistan and EFTA countries are 
currently undergoing discussions on mutually beneficial trade arrangements.  
4.201.   Since 2012, the country has continued to recover from severe economic crisis that started 
in 2008. GDP growth averaged 3.8% for 201 2-16, 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 aluminium sectors declined. Short term 
exposure t o external factors has been reduced: at end -2016, total external debt was 
US$23.4  billion compared to US$105.8 billion in 2012.  
4.202.   Trade remains important but the range of exports is limited to tourism, fish and fish 
products, and aluminium and products there of.  
4.203.   Hydro and thermal power sources are abundant in Iceland and electricity prices for 
industrial consumers are the lowest in the EEA. As a result, energy intensive industries, such as 
aluminium production, have been established and aluminium and alloys t hereof represent over 
one-third of total exports of goods (US$1.5 billion).  
4.204.   It is heartening to learn that Tourism has increased considerably since 2010 and, in 2016, 
represented about 10% of GDP and nearly 40% of export receipts for goods and services. T otal 
spending on tourism -related activities increased from ISK 93 billion in 2009 to ISK 222 billion in 
2015.  
4.205.   Pakistan appreciates that virtually, all the temporary restrictions on certain types of cross -
border capital transfers and foreign exchange transa ctions that were introduced following the 
collapse of the banking sector have been removed. A capital account liberalization strategy was 
introduced in 2015 and controls were progressively reduced. In March 2017, restrictions on foreign 
exchange transactio ns and cross -border movement of domestic and foreign currency were largely 
lifted.  WT/TPR/W/138  • Iceland  
 
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  4.206.   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 c ontrol 
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. Ic eland has submitted its 
instrument of ratification of the Trade Facilitation Agreement to the WTO on 31 October 2016.  
4.207.   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. A bout 95% of tariff lines are bound.  
4.208.   Pakistan appreciates that incentives for regional investment are provided for under new 
legislation; the previous legislation expired at the end of 2013. Under the new legislation, tax 
incentives apply for investments ou tside the Reykjavik area which are limited to 15 -35% of the 
initial investment depending on the size of the enterprise with 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.  
4.209.   It is noteworthy that the 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 n ame 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.  
4.210.   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 financial 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.  
4.211.   Here at the WTO in Geneva we want to appreciate the efforts of Iceland in upholding the 
true values of the multilateral trading system, and in that reg ard the efforts of H.E. Mr Ho ̈gni 
S. Kristjánsson, Iceland Ambassador to the WTO 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.  
4.212.   In the end,  we would like to wish Iceland a very fruitful and successful TPR.  WT/TPR/W/138  • Iceland  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF ICELAND  AND ADDITIONAL COMME NTS 
5.1.  First of all, let me thank our distinguished Discussant Ambassador Álvaro Cedeño Molinari for 
his very interesting, inspiri ng and eloquent statement last Wednesday. We are particularly thankful 
for his comprehensive understanding 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 Member'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 labour market is flexible and open to influx of 
foreign labour. 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 labour 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 Government is furthermore implementing some 
tax measures. As already mentioned, the Government 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/W/138  • Iceland  
 
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  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 opportunity 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 delegations 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 costs  
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/W/138  • Iceland  
 
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  plans to ensure that Iceland will be able to honour 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 international trading system and this very Organization. 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 this 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 Members 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 this opportunity to encourage all Members to join this important initiative.  
5.20.   Finally, Mr. Chairman, I must reiterate my gratit ude to you, our discussant, Ambassador 
Álvaro Cedeño 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, bilaterally and 
regionally. 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 sustain their 
good quality of life 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/W/138  • Iceland  
 
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  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, regarding 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 crisis 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 on 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 people 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 capital, 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, one of the main challenges identified is how to div ersify the export matrix both 
in markets and products. Tourism and transport services have played a critical role for Iceland's 
economy and it 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/W/138  • Iceland  
 
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  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 for his very capable insight s as discussant.  
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  as an early Member of the WTO and 
strong supporter of the multilateral trading system.  
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 wel l 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 I celand to address outstanding notifications 
here at the WTO.  
5.36.   The United States looks forward 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 exe rcise. 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 o n Wednesday and this morning that have 
provided a good opportunity to gain a better understanding 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 questions.  WT/TPR/W/138  • Iceland  
 
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  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, 
Ambassad or 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 I celand. 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 deve loped 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 merchandis e exports were highly 
concentrated, both in terms of products and markets, and they encouraged diversification. To 
some extent, this has not happened for trade of goods. However, recent growth was achieved, 
despite low prices for traditional exports of fis h and aluminium and the appreciation of the króna, 
partly because of the significant growth in tourism as a result of Iceland's unique landscape, 
improvements in transportation, and favourable tax and other policies. While this was noted as a 
positive tren d, 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, i t was also stressed 
that, while tourism is now an important pillar to the economy, more 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 
importa nt to Iceland. As several Members noted, imports and exports of goods and services were 
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 remov ing the remaining tariffs 
on non -agricultural products and improving customs procedures. 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 n ew 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 a gricultural export subsidies reached at the Nairobi Ministerial 
Conference. Iceland has also fully implemented the revised Agreement on Government 
Procurement and the expanded Information Technology Agreement.  
6.6.  Looking ahead, especially to the Eleventh Min isterial 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 services 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 identified 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 sector, 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 m easures, which include prohibitions on imports of some 
products.  WT/TPR/W/138  • Iceland  
 
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  6.8.  Compliance with WTO notification obligations was another important area where Members 
sought improvements from Iceland. Iceland had made a number of recent notifications in areas 
such as gove rnment 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 statement 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, particularly fisheries, energy, air transport, and real estate. Several Members 
encouraged Iceland to open these areas to foreign investment. Some Members also asked for 
more inf ormation on Iceland's investment incentives and their impact on the promotion of foreign 
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, Ice land 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 t rade to the benefit of everyone. Several Members praised 
Iceland for its leadership role 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 concl usion, 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 th at Iceland 
will take into account the constructive comments made during this Review 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 wit hin the next month, at which point the Review 
will be successfully concluded.  
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