- Country or region
- Faroe Islands
- Trade topics
- Negotiations and agreementsTrade policy
The Faroe Islands' trade relations with the EU are governed by the EU-Faroe Islands Free Trade Agreement. The Agreement is a first-generation agreement which entered into force in 1997, focusing on tariff liberalisation for goods.
The EU is the Faroe Islands’ largest trading partner by far, followed by Russia, the UK, China and Norway. The Faroe Islands are included in the EU’s Arctic Policy, where the EU is committed to investing in the future of people living in the Arctic, stimulating better education, sustainable growth and jobs.
- The EU is the Faroe Islands’ biggest trading partner, accounting for 39% of the country’s total trade in goods with the world in 2022. 56% of the Faroe Islands’ imports came from the EU, and 25% of the islands' exports went to the EU. Russia was the Faroe Islands' biggest export destination, with 33% of total exports.
- Total trade in goods between the EU and the Faroe Islands in 2022 amounted to €1.9 billion. The EU’s imports represented €779 million, and were dominated by fishery products (€683 million, 88%). The EU’s exports totalled €1,103 million, led by machinery and transport equipment (€308 million, 28%).
The EU and the Faroe Islands
The Faroe Islands have a unique relationship with the EU given that it is neither part of the EU, nor a member of the EEA unlike Norway and Iceland, nor an Overseas Country and Territory, like Greenland. With extensive autonomy under the sovereignty of the Kingdom of Denmark, the Faroe Islands decided not to become a part of the European Communities when Denmark joined in 1973. As such, the Treaties do not apply to the Faroe Islands (TFEU Article 355, 5 (a)). Formal relations between the EU and the Faroe Islands are currently based on three separate bilateral agreements dealing with fisheries, trade in goods and scientific and technological cooperation.
The Free Trade Agreement between the EU and the Faroe Islands, which covers trade in goods, came into effect in 1997. The Agreement was supplemented in 1999 with a Protocol on Veterinary Matters.
Committees and Dialogues
The Joint Committee established by the Agreement is responsible for ensuring the proper implementation of the Agreement and meets regularly to consider relevant issues.
Trading with the Faroe Islands
Rules and requirements for trading with the Faroe Islands:
- Importing into the EU from the Faroe Islands
- EU trade defence measures on imports from the Faroe Islands
- Exporting from the EU to the Faroe Islands
- Trade defence measures in force in the Faroe Islands
- The Faroe Islands is a self-governing territory of Denmark and is covered by Denmark's membership of the WTO.
Trade relations are part of the EU's overall political and economic relations with the Faroe Islands.