00-0447 MOREPRESS RELEASE
PRESS/TPRB/127
7 February 2000
TRADE POLICY REVIEW BODY
REVIEW OF ICELAND
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its
second review of Iceland's trade policies on 2 and 4 February 2000. The text of the Chairperson's
concluding remarks is attached as a summary of the salient points which emerged during thediscussion.
The review enables the TPRB to conduct a collec tive examination of the full range of trade
policies and practices of each WTO member countries at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutio nal framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of thediscussion and the Chairperson's summing-up together with these two reports will be published in due
course at the complete trade policy review of Iceland and will be available from the WTO Secretariat,
Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 and
1999), Australia (1989, 1994 and 1998), Austria (19 92), Bangladesh (1992), Benin (1997), Bolivia
(1993 and 1999), Botswana (1998), Brazil (1992 an d 1996), Burkina Faso (1998), Cameroon (1995),
Canada (1990, 1992, 1994, 1996 and 1998), Chile (1991  and 1997), Colombia (1990 and 1996), Costa
Rica (1995), Côte d’Ivoire (1995), Cyprus (1 997), the Czech Republic (1996), the Dominican
Republic (1996), Egypt (1992 and 1999), El Salvador (1996), the European Communities (1991,1993, 1995 and 1997), Fiji (1997), Finland (1992), Ghana (1992), Guinea (1999), Hong Kong (1990,
1994 and 1998), Hungary (1991 and 1998), Icelan d (1994 and 2000), India (1993 and 1998),
Indonesia (1991, 1994 and 1998), Israel (1994 a nd 1999), Jamaica (1998), Japan (1990, 1992, 1995
and 1998), Kenya (1993 and 2000), Korea, Rep. of (1992 and 1996), Lesotho (1998), Macau (1994),
Malaysia (1993 and 1997), Mali (1998), Mauritius (1995), Mexico (1993 and 1997), Morocco (1989
and 1996), New Zealand (1990 and 1996), Namibia (1998), Nicaragua (1999), Nigeria (1991 andPRESS/TPRB/127
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MORE1998), Norway (1991 and 1996), Pakistan (1995), Pa pua New Guinea (1999), Paraguay (1997), Peru
(1994), the Philippines (1993 and 1999), Poland (1993), Romania (1992 and 1999), Senegal (1994),Singapore (1992 and 1996), Slovak  Republic (1995), the Solomon Islands (1998), South Africa (1993
and 1998), Sri Lanka(1995), Swaziland (1998), Sweden (1990 and 1994), Switzerland (1991 and
1996), Thailand (1991, 1995 and 1999), Togo (1999), Trinidad and Tobago (1998), Tunisia (1994),
Turkey (1994 and 1998), the United States (1989, 1992, 1994, 1996 and 1999), Uganda (1995),
Uruguay (1992 and 1998), Venezuela (1996) , Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/127
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MORETRADE POLICY REVIEW OF ICELAND
2 AND 4 FEBRUARY 2000
CONCLUDING REMARKS BY THE CHAIRPERSON
We have had positive and open discussions on Iceland's trade policies and measures.
Members of the TPRB were clearly impressed by Iceland's outstanding economic recovery since its
first Review in 1994, due in good part to Iceland's generally liberal trade regime, disciplined
macroeconomic management and continued structural reforms.  Those policies and the deft
exploitation of its fish and energy resources have permitted Iceland to reap the benefits of
international specialization and freer trade, thus achieving one of the world's highest living standards.
In the current favourable conjuncture, Iceland major short-term challenge was preventing theeconomy form overheating.
Members commended Iceland's strong support for an open multilateral trading system and its
commitment to liberal trade policies, evidenced by its generally low tariffs.  Iceland was also
commended for its leadership in the ongoing efforts to commence work in the WTO concerningsubsidies in fisheries.  Noting Iceland's applications for accession to the WTO Plurilateral Agreement
on Government Procurement, Members expressed their hope that the negotiations be completed soon.
Members noted the important changes already implemented in the agricultural sector but
encouraged Iceland to introduce further trade-liberalization and restructuring measures to reduceprotection and assistance to that sector.  Concern was expressed with respect to Iceland's over-reliance
on earnings from exports of fisheries to finance imports and Iceland was encouraged to seek
diversification of its export basket.  The increasing complexity of Iceland's trade regime, resulting
from the increasing number of preferential agreements subscribed by EFTA, was noted.  Members
also noted the existence of investment restrictions on strategic sectors and enquired whether Icelandintended to relax these restrictions.
While noting the effort undertaken to reform and liberalize its trade regime, Members
encouraged Iceland to examine areas were further liberalization could be implemented, to review and
simplify its system of indirect taxes, and to narrow the gap between applied and bound tariff rates.
Members also asked for details in a number of more specific areas including:- measures affecting the importation, distribution and retail sales of alcoholic
beverages;
- duty suspension schemes;
- legislation on government procurement and market access and national treatment for
foreign enterprises;
- some aspects of trade-related intellectual property rights, particularly regarding
patents and geographical indications;
- certain aspects of competition policy, including the non-application of national
legislation to export cartels;
- MFN exemptions in audio visual and air transport services;
- national treatment limitations to non-EEA enterprises under the GATS;PRESS/TPRB/127
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END- integration of textiles under the ATC;
- customs tariff bindings;- the allocation and effects of tariff quotas in agriculture;
- the allocation of fish quotas;
- the import licensing regime;  and
- support programmes and measures taken to achieve self-sufficiency in agriculture.
Members appreciated the comprehensive oral and written responses provided by the Icelandic
delegation in the context of this meeting, as well as Iceland's undertaking to respond in writing to
some additional specific questions as soon as possible.
In conclusion, it is my sense that Members fully acknowledged Iceland's recent success in
managing a specialized, resource-based economy, and trusted that current efforts to bring it to a "soft
landing" would do well.  They recognized Iceland's structural reforms over the past few years and
encouraged it to continue in this path as to secure  the flexibility necessary to ride out future external
shocks.  Members welcomed Iceland commitment to trade liberalization;  they pointed out the
arguments in favour of non-discriminatory liberal policies to secure Iceland's past gains.