Almost 90 % of EU agricultural products will have duty-free access to the Icelandic market, after MEPs endorsed a deal to further liberalise trade flows. The EU will benefit from increased quotas, in particular for cheese, beef, pig meat and poultry, whereas Iceland will gain additional access to the market for its skyr (a special dairy product) exports. Basically all trade in processed agricultural products would become duty free with the exceptions of fermented milk products.

Under a separate agreement, the EU secured protection for its geographical indications (certain products possessing qualities and a reputation due to their geographical origin) for food and drinks sold in Iceland.

The two agreements were approved by 665 votes to 7 with 18 abstentions and 637 to 8 votes to 46 abstentions.

Quote

“Iceland is a neighbour and an important partner of the EU. The two agreements the plenary has approved are strengthening our trade through wider duty-free access of EU products on the Icelandic market and guaranteeing a stronger protection of more than 1.000 European geographical indications. The final aim of these agreements is also to increase the transparency for the consumers”, rapporteur David Borrelli (EFDD, IT) said after the votes.

Quick facts

The EU and Iceland are parties to the agreement on the European Economic Area (EEA Agreement), which provides for free movement of goods, with the exception of agricultural and fisheries products. Article 19 stipulates that every two years the parties review the conditions of trade in agricultural products and decide on the further reduction of any type of barriers. Negotiations on both topics were conducted from July 2012 to September 2015. In 2015, EU agricultural exports to Iceland were worth EUR 290 million, while the value of imports reached EUR 44 million. The main EU export products are fruit, vegetables and cereals. Imports from Iceland are chiefly seaweed and algae, sheep meat, live horses and fur skins.