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EU trade relations with Iceland. Facts, figures and latest developments.

Country or region
  • Iceland
Trade topics
  • Negotiations and agreements
  • Trade policy

Iceland's economic and trade relations with the EU are mainly governed by the European Economic Area (EEA) agreement.

The European Economic Area extends the laws of the single market (except for agriculture and fisheries laws) to the European Economic Area countries.

This means that Iceland is legally bound to implement EU directives and regulations on the free movement of goods, persons, services and capital.

Trade picture

  • The EU made up around 54% of Iceland's total trade in goods in 2022.
  • The EU had a small trade deficit with Iceland of €90m in 2022. 
  • Around 66% of Icelandic exports go to the EU. Iceland's exports to the EU mainly consist of fuels and mining products, and food and live animals.
  • In 2022, Iceland was the sixth-largest exporter of fish and fishery products to the EU.
  • Iceland grants duty-free market access for most fish and fishery products. The EU also applies tariff concessions on some fish and fishery products originating in Iceland.

The EU and Iceland

As a member state of the European Economic Area (EEA), Iceland fully applies EU laws about the four freedoms (free movement of goods, persons, services and capital), along with laws related to other areas of EU and EEA cooperation.

As a result, the EEA agreement creates a lot of economic integration, common competition rules, rules for state aid and government procurement between Iceland and the EU.

Agriculture and fisheries are not covered by the EEA agreement. However the agreement emphasises the commitment of the parties to a gradual opening up of agricultural trade, which is done by concluding separate agreements. The latest agreement on agricultural products, concluded on the basis of Article 19 of the EEA, is from 2017. 

As a member of the European Free Trade Association (EFTA), Iceland seeks to conclude bilateral free trade agreement in the so-called EFTA framework. This means that Switzerland, Norway, Iceland and Liechtenstein can negotiate a free trade agreement with a respective third country via EFTA.

Committees and Dialogues

The EU and Iceland meet regularly to discuss issues and best practices and oversee the proper functioning of the Agreement.

Technical committee meetings - agendas and reports

Trading with Iceland