Faroe Islands

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.

Trade picture

• The EU is the Faroe Islands’ biggest trading partner, representing 34.7% of the country’s total trade in goods in 2024.
• The EU is the Faroe Islands' second-biggest export market, taking in 23% of the country's total exports.
• The Faroe Islands mainly export fishery products to the EU.
• The EU is the Faroe Islands' biggest source of imports, with a share of 48.9% of the country's total imports.
• The EU's trade in services with the Faroe Islands grew by 71% between 2022 and 2023, showing a positive balance for the EU 2023.

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.

In March 2024, the EU and the Faroe Islands signed a Memorandum of Understanding (MoU) on enhanced cooperation. The MoU recognises shared values, principles and commitments to democracy, rule of law and respect for human rights, peace and stability, international law, and sustainable development.

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.

• Technical committee meetings agendas and reports

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
  • Export rules on food and plant health
• 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.