Iceland WT/TPR/S/164/Rev.1
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II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) OVERVIEW  
1. No significant changes have affected Iceland's general legal framework since its last Review 
in 2000.  Given Icel and's small size, participation in intern ational trade is seen as an indispensable 
element of economic policy and one of the factors explaining the country's economic success.  Iceland 
conducts trade policy within the framework of its  participation in the European Economic Area 
(EEA);  it has transposed into domestic law most EU  single market legislation.  This has resulted in 
the adoption of wide-ranging economic reforms sinc e 2000, while also widening the gap between the 
treatment afforded to EEA and non-EEA partners  in various economic sectors.  Iceland has 
participated actively in the multilateral trading system , particularly considering the small size of its 
public administration, and has submitted several pr oposals in the context of the Doha Development 
Agenda.  Iceland has never been involved in any dispute in the WTO. 
2. As a member of the EEA, Iceland grants largely unrestricted access to goods, workers, 
services, and capital from other members.  In the c ontext of its participation in the European Free 
Trade Association (EFTA), Iceland has a large and growing network of free-trade agreements, which 
mirrors that of the European Union.  Excluding  the EEA and EFTA, free-trade agreements cover a 
very limited amount of Iceland's trade;  it is t hus an open question whether their overall benefits 
outweigh the complexity they add to the trade re gime, and the burden they impose on Iceland's small 
administration. 
3. Iceland maintains sector-specific restrictions on foreign investment in fisheries, energy, and 
airline operations.  Other restrictions on investme nt apply only to non-EEA or non-OECD nationals 
and companies.  In addition, Iceland's legislati on gives the State the authority to limit foreign 
investment in the event of serious economic difficulties in particular sectors. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) General legal framework 
4. No changes have occurred in the constitutional re gime since Iceland's Trade Policy Review in 
2000.  According to the Constitution, the preside nt "and other governmental authorities" jointly 
exercise executive authority.1  However, the Constitution also stat es that the President's authority is 
entrusted to ministers, who are accountable for all executive acts.2  In practice, executive power is 
exercised by a cabinet led by the Prime Minister, who is the head of government. 
5. Legislative authority is vested jointly in the President and a unicameral parliament composed 
of 63 members.3  Bills passed by parliament must be s ubmitted to the President for confirmation.4  If 
the President rejects them, a referendum must be held  to determine whether they remain in force or 
become void.  The President has used this veto  power only once, in 2004.  Parliamentary and 
presidential elections are held every four years.  The most recent elections took place in 2003 (parliament) and 2004 (president).   Re-election is permitted. 
6. The judiciary is independent of the executive and legislative branches of government.  The 
two-level court system consists of eight district c ourts, and the Supreme Court.  The nine justices of 
                                                     
 
1 Article 2, Constitution of the Republic of Iceland. 
2 Articles 13 and 14. 
3 Article 2, Constitution of the Republic of Iceland. 
4 Article 26, Constitution of the Republic of Iceland. WT/TPR/S/164/Rev.1 Trade Policy Review 
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the Supreme Court are appointed by the President.  In addition, there are two special courts with 
limited jurisdiction. 
7. The authority to conclude internati onal treaties rests with the executive.5  Parliamentary 
approval is required for treaties that entail amendments  to domestic legislation.  Under Iceland's legal 
system, the terms of an international treaty are not considered domestic law unless expressly 
incorporated into the domestic legal order. 
8. Iceland's membership in the Agreement on the European Economic Area imposes a 
requirement to transpose into domestic law EU  legislation covered by the Agreement (see 
section (4)(ii)).  Changes in EU legislation that do not require any amendments to or the adoption of 
Icelandic laws are accommodated thr ough regulations or decrees issued by ministers, and thus entail 
no involvement by Iceland's parliament.  Accordi ng to the Icelandic authorities, only around 4% of 
the 2,527 EU acts incorporated into the EEA Agreement between 1994 and 2004 required amendments to existing Icelandic laws, or the adoption of new laws. 
9. Taxes may only be imposed or changed through an Act.
6 
(ii) Trade policy formulation, implementation, and objectives 
10. Foreign trade policy is the responsibility of the Government in general, and the Minister for 
Foreign Affairs in particular.  Within the Ministry  for Foreign Affairs, foreign trade policy is the 
responsibility of the External Trade Department.  The Icelandic authorities have indicated that the 
Ministry for Foreign Affairs works closely with othe r ministries in formulating and applying Iceland's 
foreign trade policy.  The Ministry for Foreign Affairs is responsible for trade negotiations and 
represents Iceland at the WTO. 
11. International trade is at the core of Iceland' s economic policy.  Iceland sees its efforts to 
"trade with a great variety of nations" as one of  the elements underlying its economic success;  it 
considers that its reliance on international trade is an imperative given its small size, and that it cannot 
afford to isolate itself and build ba rriers towards the rest of the world.7  One of Iceland's primary 
policy goals in international trade is to strengthe n the competitiveness of domestic businesses in world 
markets by extending its bilateral tr ade relations.  However, the aut horities indicate that the focus of 
trade policy remains Iceland's membership in the EEA, EFTA, and the WTO. 
12. Iceland's close integration with the European  Union through the EEA Agreement establishes 
the framework within which Iceland conducts trade policy.  Although the EEA does not entail either a 
common external tariff or a common commercial polic y, Iceland's trade policy towards third countries 
is closely aligned with EU policy.  As part of the European Free Trade Association (EFTA), Iceland 
has concluded preferential trade agreements with  several countries, many of which also have 
preferential agreements with the European Union (section (4)(ii)). 
(3) FOREIGN INVESTMENT REGIME  
13. The formulation of investment policy is the responsibility of the Ministries of Industry and 
Commerce.  The main legislation on foreign investme nt is the Act on Investment by Non-residents in 
                                                      
5 Article 21, Constitution of the Republic of Iceland. 
6 Article 40, Constitution of the Republic of Iceland. 
7 Prime Minister's Office online information, "Why  Small States Must Think Big", Opening Address 
by Prime Minister Mr. Halldór Ásgrímsson at the Workshop on Small States, Reykjavik, 17 September 2004.  Available at:  http://eng.forsaetisraduneyti.is/m inister/Speeches_HA/nr/1517 [17 January 2005]. Iceland WT/TPR/S/164/Rev.1
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Business Enterprises.8  A Committee on Foreign Investment is responsible for monitoring the 
implementation of the law's foreign investment  restrictions in various sectors (see below).9  I t  i s  
composed of five members, elected by parliament  in proportion to the seats held by each political 
party.  In the context of Iceland's Review in 2000,  the Icelandic authorities indicated that the Minister 
of Industry and Commerce had set up a committee to  formulate recommendations on reforms to the 
foreign investment regime.10  The committee did not issue any recommendations.  The Invest in 
Iceland Agency, a joint venture between the Mini stries of Industry and Commerce and the Trade 
Council of Iceland (see Chapter III(3)(iv)), is in char ge of promoting foreign direct investment into 
Iceland. 
14. Although Iceland has greatly liberalized its fore ign investment regime since 1980, it is among 
the OECD countries with the highest level of overall restrictions to foreign direct investment.11 
15. Foreign investment is subject to notification and review.12  According to Article 12 of 
Act No. 34/1991, a foreign investment is not perm itted if the Minister of Industry and Commerce 
determines that it "threatens national security, public order, public safety or public health";  neither is 
a foreign investment allowed "in the event of serious  economic, social or environmental difficulties in 
particular economic sectors or particular areas which are likely to be of lasting nature".  The Minister 
is required to determine the admissibility of foreig n investment within eight weeks of receiving the 
relevant notification, after havi ng consulted with the Committee on Foreign Investment.  No foreign 
investment has ever been rejected on th e basis of Article 12 of Act No. 34/1991. 
16. There are no exchange control restrictions on capital flows. 
17. With exceptions, foreigners must obtain a permit from the Ministry of Justice to own real 
estate in Iceland.  The following do not need a permit:  EEA and EFTA citizens;  Icelandic residents;  
and companies whose headquarters or main operati ons are in an EEA or EFTA State, or whose 
articles of association state their residence in an  EEA or EFTA State.  These companies must have 
real and on-going connections with the business sector of the EEA or EFTA State of residence.13  The 
Icelandic authorities indicate that, in practice, a liber al policy is applied with respect to the issuance of 
permits to non-EEA/EFTA citizens and companies, a nd that no permits have been denied during the 
past few years. 
18. Limited liability companies (other than fina ncial companies) domiciled outside the EEA, 
EFTA, or OECD are required to obtain a permit from the Minister of Industry and Commerce to establish a branch in Iceland, unless an agreement between Iceland and the country where the 
company is domiciled provides otherwise.
14  Limited liability companies domiciled in the EEA, 
EFTA, or OECD can establish a branch in Iceland without further regulator y approval.  Parent 
companies, regardless of country of domicile, must d esignate a branch manager, who must be either a 
resident in Iceland, or an EEA/EFTA/OECD citizen  and resident.  The Minister of Industry and 
Commerce may waive the citizenship and residency requirements.  Investors from outside the EEA, 
EFTA, or OECD are required to obtain authoriza tion from the Minister of Industry and Commerce 
                                                      
8 Act No. 34/1991, 25 March 1991. 
9 Article 12, Act No. 34/1991. 
10 WTO document WT/TPR/M/65, 5 April 2000. 
11 Golub (2003). 
12 Article 7, Act No. 34/1991. 
13 Act on the Right to Own and Use Real Estate, No. 19/1966, and Article 4, Regulation No. 702/2002. 
14 Investment restrictions in the financial sector are discussed in Chapter IV(6)(iii)). WT/TPR/S/164/Rev.1 Trade Policy Review 
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before they can "take part" in an unlimited company.15  No such authorization is required for EEA, 
EFTA, or OECD investors. 
19. The managers and a majority of the members of the board of directors of non-financial 
companies domiciled in Iceland are required to reside in Iceland, unless they are EEA or EFTA 
citizens and residents (for limited liability companies, also OECD citizens and residents), or they have 
received a waiver from the Minister of Industry and Commerce.16  For limited liability companies, 
some of the founders must also reside in Iceland, unless they are EEA, EFTA, or OECD citizens and residents, or they have received a waiver  from the Minister of Industry and Commerce.
17 
20. Foreign states cannot invest in companies domiciled in Iceland, unless they receive a permit 
from the Minister of Industry and Commerce.18  The Icelandic authorities indicate that no applications 
for such permits have been received (February 2006). 
21. Iceland maintains various sector-specific inv estment restrictions, including in fishing 
(Chapter IV(3)), energy (Chapter IV(5)),  and air transport (Chapter IV(6)(iv)). 
22. Under the General Agreement on Trade in Se rvices, Iceland undertook full market access and 
national treatment commitments relating to investment for a number of service activities, including 
telecommunication, construction and related engineering services, and distribution services 
(Chapter IV(6)).  Iceland has bilateral investment  treaties with China, Latvia, Lebanon, Lithuania, 
Slovakia, and Viet Nam;  all except the treaty with Lebanon are in force.19 
(4) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
23. Iceland is an original Member of the WTO.  The Icelandic authorities indicate that there had 
been no need to implement the Marrakesh Agreement through a single legislative instrument, and that 
care had been taken to ensure that domestic laws are in accordance with I celand's WTO membership.  
Iceland participated in the post-Uruguay Round ne gotiations on telecommuni cations and financial 
services;  its commitments in these areas were annexed to the Fourth and Fifth Protocols to the GATS.
20  Iceland is a party to the Agreement on Gove rnment Procurement and a participant in the 
Information Technology Agreement. 
24. Iceland met most of its notification obligati ons between January 2000 and December 2005.  
Exceptions include notifications on special safe guards and export subsidies in agriculture;  
preferential rules of origin;  and g overnment procurement (Table AII.1). 
25. Iceland has not been involved as a complainant or respondent in any WTO dispute since its 
last Review in 2000;  neither has it partic ipated as a third party in any WTO dispute. 
                                                      
15 Article 6, Act No. 34/1991. 
16 Article 10, Act No. 34/1991. 
17 Article 3, Act No. 2/1995;  Article 3, Act No. 138/1994;  and Announcement Respecting General 
Exemption from the Conditions of Residence of the Limited Company Legislation, No. 260/1997, 16 April 
1997. 
18 Article 4, Act No. 34/1991. 
19 Entry into force of Iceland's bilateral investment  treaties:  China (1 March 1997), Latvia (1 May 
1999), Lithuania (18 April 2003), Slovakia (19 June 2003), and Viet Nam (10 July 2003). 
20 WTO documents GATS/SC/41/Suppl.1, 11 April 1997, and Suppl.2, 26 February 1998. Iceland WT/TPR/S/164/Rev.1
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26. In the context of the WTO Doha Development Agenda, Iceland has made contributions or 
proposals in various areas (Table II.1).  It has prop osed an agreement to "eliminate or substantially 
liberalize tariffs and address unjustified non-tariff ba rriers" in fisheries, and improved disciplines on 
fisheries subsidies.  It has unde rscored the need to achieve a pr oper balance between trade and non-
trade concerns in the negotiations on agriculture.  Iceland has made initial and revised services offers. 
Table II.1 
Selected submissions by Icela nd in the context of the Doha Development Agenda, December 2005  
Negotiating area Co-spo nsors Themes Reference 
Rules Argentina, Chile, New Zealand, Norway, Peru Possible ways to categorize fisheries 
subsidies TN/RL/W/58, 
10 February 2003 
Rules Australia, Chile, Ecuador, New Zealand, Peru, 
Philippines, United States Need for improved WTO disciplines 
on subsidies in the fisheries sector TN/RL/W/3, 
24 April 2002 
Market access Canada, New Zealand, Norway, Singapore, 
Thailand Liberalization of trade in fish and 
fish products TN/MA/W/63, 
18 October 2005 
Agriculture Bulgaria, Chinese Taipei, Israel, Liechtenstein, 
Mauritius, Norway, Switzerland Statement on non-trade concerns TN/AG/GEN/1, 
14 March 2003 
Services None Initial and revised offers TN/S/O/ISL, 
4 April 2003 
TN/S/O/ISL/Rev.1, 
14 June 2005 
Services Australia;  Canada ;  Chile;  Chinese Taipei; 
Djibouti;  European Union;  Hong Kong, China;  Japan;  Korea;  Liechtenstein;  Mauritius;  New 
Zealand;  Nicaragua;  Norway;  Panama;  Peru;  
Singapore;  Switzerland;  United States Liberalization of logistic s services TN/S/W/34, 
18 February 2005 
Services Australia;  Canada; Ch ile; China;  Chinese Taipei 
Croatia;  Cyprus;  Czech Republic;  Dominican Republic;  Estonia;  European Union;  Gambia;  
Georgia;  Guatemala;  Hong Kong, China;  India;  
Japan;  Korea;  Kyrgyz Republic;  Latvia;  Lithuania;  Malaysia;  Malta;  Mexico;  New 
Zealand;  Nigeria;  Norway;  Pakistan;  Panama;  
Papua New Guinea;  Peru;  Poland;  Romania;  Singapore;  Slovenia;  Switzerland Liberalization of maritime transport 
services TN/S/W/11, 
3 March 2003 
Intellectual property Bulgaria, Cyprus, Czech Republic, European 
Union, Georgia, Hungary, Malta, Mauritius, Moldova, Nigeria, Romani a, Slovakia, Slovenia, 
Sri Lanka, Switzerland, Turkey Establishment of a multilateral 
system to protect geographical indications TN/IP/W/3, 
24 June 2002 
 
Source: WTO Secretariat. 
(ii) Preferential trade agreements and other arrangements 
(a) European Free Trade Association 
27. Iceland has been an EFTA member since 1970;   the other members are Liechtenstein, 
Norway, and Switzerland.  A revised EFTA Conven tion, which entered into force in June 2002, 
extends the provisions of the EEA Agreement and the Switzerland-EU bilateral agreements to the 
relations between Iceland, Liech tenstein, and Norway on the one hand, and Switzerland on the other.21 
28. The EFTA Convention establishes a free-trade area  among its members in industrial products 
and in fish and other marine products.  It also contains disciplines on state aid, practices of public 
undertakings, competition rules, intellectual propert y rights, free movement of persons (including 
coordination of social security systems and mu tual recognition of professional qualifications), 
investment, trade in services, and government procurement. 
                                                      
21 Agreement Amending the Convention Establishing the European Free Trade Association, 21 June 
2001. WT/TPR/S/164/Rev.1 Trade Policy Review 
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(b) European Economic Area 
29. Iceland is a founding member of the EEA.  Th e EEA Agreement stipul ates the free movement 
of goods, services, capital, and persons among Icel and, Liechtenstein, Norway, and the 25 members 
of the European Union.22  However, it does not entail the application of a common external tariff.  In 
addition, it excludes from free trade a significant numb er of agricultural products;  for imports into 
Iceland, these are mostly in HS Chapters 01 (liv e animals), 06 (live trees and other plants), 08 (fruit 
and nuts), and 10-12 (cereals, products of th e milling industry, and oil seeds and grains).23  The EEA 
Agreement calls on the parties to "continue thei r efforts with a view to achieving progressive 
liberalization of agricultural trade".24  To this end, the agreement requires the parties to undertake 
biannual reviews of the conditions of  trade in agricultural products.25  The last such review was 
concluded in February 2006. 
30. In addition to single market disciplines, the EEA Agreement covers a number of related areas, 
including competition policy, state aid, consumer protection, and company law.  EEA members may 
not apply anti-dumping or countervaili ng duties on other members' imports.26  Iceland has a wide 
derogation from EEA sanitary legislation (Chapter III(2)(ix)). 
31. To ensure uniformity across the EEA of the ru les underpinning the single market, Iceland and 
other EEA-EFTA states are required to transpose in to domestic law, on a continuous basis, EU 
legislation covered by the Agreement.  The mech anism envisaged by the EEA Agreement to extend 
new EU legislation to EEA-EFTA states involves ame nding the agreement to reflect such legislation, 
and then transposing the amended part of the ag reement into the domestic legal order of EEA-EFTA 
states.27  Decisions to amend the EEA Agreement in th e light of new EU legislation are taken by 
consensus in the EEA Joint Comm ittee, composed of representatives from EFTA-EEA states and the 
European Union.  In the event that the Joint Committee is unabl e to reach agreement within a 
specified time limit, the relevant part of th e EEA Agreement can be suspended provisionally.28  This 
has never happened.  There are also mandatory ex changes of information and consultations between 
the EU Commission and EEA-EFTA states through out the elaboration and adoption of EU 
legislation.29 
32. The EFTA Surveillance Authority is responsible  for monitoring the implementation of EEA 
provisions in the EEA-EFTA states.  In general, EEA -EFTA states are required to notify the Authority 
of the transposition of EEA provisions into domestic law.  As at end 2004, Iceland had fully transposed into domestic law 98.2% of the 1,360 EU  directives it was required to implement under the 
EEA Agreement.
30  Legislation still to be implemented as at mid-2005 related to the removal of 
technical barriers to trade and transport.31  
                                                      
22 Article 1(2), Agreement on the European Econ omic Area, 2 May 1992.  The EEA enlargement 
instrument, through which the ten new EU members became part of the EEA, was signed in October 2003 and 
entered into force provisionally as from May 2004;  it is awaiting full ratification by member states. 
23 Article 8(3), and Protocols 3 and 9, EEA Agreement. 
24 Article 19(2), EEA Agreement. 
25 Article 19(3), EEA Agreement. 
26 Article 26, EEA Agreement. 
27 Articles 97-104, EEA Agreement. 
28 Article 102(5), EEA Agreement. 
29 Article 99, EEA Agreement. 
30 EFTA Surveillance Authority (2005a). 
31 EFTA Surveillance Authority (2005b). Iceland WT/TPR/S/164/Rev.1
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33. The EFTA Surveillance Authority can investig ate alleged infringements of EEA provisions, 
either on its own initiative or following a complaint.32  A formal infringement proceeding begins with 
a letter of formal notice from the Authority to the EEA-EFTA State concerned, requesting 
observations on the alleged infringement within a specifi ed time limit.  If the matter is not resolved at 
this stage, the Authority issues a reasoned opini on and requests the EEA-EFTA State to take the 
necessary measures to end the alleged infringement .  Depending on the EEA-EFTA State's response 
to the reasoned opinion, the Authority may decide to refer the case to the EFTA Court. 
34. The EFTA Surveillance Authority addressed 36 letters  of formal notice to Iceland, and four 
reasoned opinions in 2004.33  No cases involving Iceland were referred to the EFTA Court.  An 
annual average of 22 letters of formal notice a nd a reasoned opinions were addressed to Iceland 
during 2000-03.  Only one case was referred to the EFTA Court;  it concerned Iceland's air passenger tax (Chapter IV(6)(iv)).  Of all infringement cases open in July 2005, 30% concerned Iceland, 
28% Liechtenstein, and 43% Norway.
34 
35. In addition to handling cases referred to it by the EFTA Surveillance Authority, the EFTA 
Court may issue advisory opinions on the interpretation of EEA rules following a request from a 
domestic court.35  Since 2000, two such requests have been ma de by Icelandic courts.  One related to 
the higher VAT rate levied on books in foreign languages than in Icelandic.36  The Court determined 
that this measure was incompa tible with EEA provisions and c ould not be justified "on grounds 
relating to the public interest of enhancing the pos ition of the national language".  The second request 
related to Iceland's state monopoly on the import and wholesale distribution of alcoholic beverages.37  
The Court ruled that maintaining such a monopol y was incompatible with the EEA Agreement 
(see also Chapter III(4)(iv)). 
(c) Other free-trade agreements 
36. As an EFTA member, Iceland participates in an  expanding network of free-trade agreements 
(Table II.2).  The Icelandic authorities indicate that EFTA members seek to support and reinforce the processes of European and inter-regional integra tion, and to contribute to world-wide trade 
liberalization efforts through these agreements.  The authorities also note that free-trade agreements 
allow EFTA countries to secure access for their busin esses to markets outside the EEA on terms that 
are comparable to those available to EU businesses, and to establish a pan-European system of rules 
of origin that facilitates exports.  According to the authorities, the burden imposed on the Icelandic 
administration by such an extensive network of fr ee-trade agreements is reduced significantly given 
that the agreements are nego tiated under the EFTA umbrella. 
37. Iceland also has bilateral trade agreements  with the Faeroe Islands and Greenland. 
38. All free-trade agreements between EFTA and th ird countries cover trade in industrial goods, 
fish and other marine products, and processed ag ricultural goods.  Trade in unprocessed agricultural 
products is covered to a very limited extent, usually through bilateral arrangements between 
individual EFTA members and free-trade partners .  The agreements also contain disciplines on 
                                                     
 
32 Article 31, Agreement between the EFTA States on the Establishment of a Surveillance Authority 
and a Court of Justice, 2 May 1992. 
33 EFTA Surveillance Authority (2005a). 
34 EFTA Surveillance Authority (2005b). 
35 Article 34, Agreement between the EFTA States on the Establishment of a Surveillance Authority 
and a Court of Justice. 
36 Case E-1/01, Hörður Einarsson and The Icelandic State, 22 February 2002. 
37 Case E-4/01, Karl K. Karlsson hf. and The Icelandic State, 30 May 2002. WT/TPR/S/164/Rev.1 Trade Policy Review 
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competition policy, state aid, and intellectual propert y rights.  Government procurement, services, and 
investment are generally addressed through so -called "evolutionary clauses", whereby EFTA 
members and their free-trade partners agree to work  gradually towards liberalization.  The free-trade 
agreements with Chile, Mexico, and Singapore are exceptions, since they provide for reciprocal 
market access in these thr ee areas upon entry into force.38 
Table II.2 
Iceland's participation in preferenti al trade agreements, November 2005 
Agreement/partner(s) Signature Entry into force GATT/WTO reference Share of 
Iceland's 
imports (%)a Share of 
Iceland's 
exports (%)a
European Free Trade Association 
(Liechtenstein, Norway, and 
Switzerland);  convention revised in June 2001 4 December 1969b 1 March 1970 L/3328 (GATT) 
WT/REG154/1 10.7 4.6 
Greenland 31 January 1985 1 February 1985 .. 0.3 0.2 
Turkeyc 10 December 1991 1 April 1992 L/6989/Add.1 (GATT) 0.6 0.1 
Agreement on the European 
Economic Area (EU Member 
States, Norway, and 
Liechtenstein) 02 May 1992 1 January 1994 WT/REG138/1 (goods) and 
WT/REG138/2 (services) 70.5 78.2 
Faroe Islands 6 August 1992d 1 July 1993 WT/REG23/N/1 0.9 1 
Israelc 17 September 1992 1 January 1993 L/ 7129 and Add.1 (GATT) 0.2 0 
Romaniac 10 December 1992 1 May 1993 L/7215 and Add.1 (GATT) 0.1 0 
Bulgariac 29 March 1993 1 July 1993 L/7257 and Add.1 (GATT) 0 0 
Moroccoc 19 June 1997 1 December 1999 WT/REG91/N/1 0 0 
Palestinian Authorityc 30 November 1998 1 July 1999 WT/REG79/N/1 0 0 
Former Yugoslav Republic of 
Macedoniac 19 June 2000 1 May 2002 WT/REG117/N/1 0 0 
Mexicoc 27 November 2000 1 July 2001 WT/REG126/N/1 0.1 0 
Croatiac 21 June 2001 1 April 2002 WT/REG132/N/1 0 0 
Jordanc 21 June 2001 1 September 2002 WT/REG133/N/1 0 0 
Singaporec 26 June 2002 1 January 2003 WT/REG148/N/1 0.1 0 
Chilec 26 June 2003 1 December 2004 WT/REG179/N/1 and 
S/C/N/309 0.1 0.1 
Lebanonc 24 June 2004 Not yet in force .. 0 0 
Tunisiac 17 December 2004 1 March 2006 WT/REG201/N/1 0.1 0 
Korea 15 December 2005 Not yet in force .. 0.9 0.2 
 
.. Not available. 
 a 2004 data. 
b Date refers to Iceland's accession. 
c Agreement concluded by Iceland as part of EFTA. d A more comprehensive free-trade agreement wa s signed on 31 August 2005;  it is expected to enter into force during the first half 
 of 2006. 
 
Source : WTO Secretariat;  and EFTA Secretariat (2004), Annual Report of the European Free Trade Association 2004 .  
 Available at:  http://secretariat.e fta.int/Web/Publica tions/AnnualReport/. 
                                                      
38 With respect to government procurement, the fre e-trade agreement with Si ngapore does not entail 
additional market access beyond that  offered by the parties under the WTO Government Procurement 
Agreement. Iceland WT/TPR/S/164/Rev.1
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39. As at early 2006, the EFTA states were nego tiating bilateral free-trade agreements with 
Canada, Egypt, Thailand, and the members of the Southern African Customs Union.39 
(d) Other arrangements 
40. Iceland has granted unilateral preferential ta riff treatment to 48 developing countries since 
2002.40  The preferences granted mirror those provide d to EEA countries;  a significant number of 
agricultural products are therefore excluded.  Origin ating goods covered by the scheme receive mostly 
duty- and quota-free treatment. 
                                                      
39 EFTA Secretariat (2004). 
40 Regulation on a General System of Preferences – Tariff Preferences in Regard to the Importation of 
Products Originating in the World's Poorest Developing Countries, No. 119/2002, 29 January 2002.  The 
regulation was notified to the WTO Committee on Trade and Development under the enabling clause.  (WTO document WT/COMTD/N/17, 10 October 2003).  Tariff preferences are granted to  the countries listed in 
Annex V to the Customs Act No. 55/1987, as amended.  These are:  Afghanistan, Angola, Bangladesh, Benin, 
Burma, Burkina Faso, Burundi, Bhutan, Cambodia, Cape Verde Islands, Central African Republic, Chad, Congo, Comoros, Djibouti, Eritrea, Equatorial Guinea , Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, 
Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, 
Rwanda, Solomon Islands, Samoa, Sao Tome and Principe, Sierra Leone, Somalia, Sudan, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, and Zambia.