Free Trade Agreement Between The UK and Iceland

After the UK left the European Union, it has been focusing on creating trade agreements with other countries around the world. One such country that the UK has been negotiating a free trade agreement with is Iceland.

The UK and Iceland have a long-standing trading relationship, and the two countries have been working together to strengthen their economic ties even further. Negotiations for a free trade agreement began in 2018, and it is expected to cover a wide range of sectors, including fish and seafood, renewable energy, and digital services.

The importance of the UK-Iceland trade relationship cannot be overstated. Iceland is the UK`s 39th largest export destination, with trade amounting to £575 million in 2019. The UK is also a significant export destination for Iceland, with exports worth £470 million in the same year. A free trade agreement between these two countries would further boost their trading relationship, leading to new opportunities and increased economic growth.

One of the main benefits of a free trade agreement is the elimination or reduction of tariffs. This would make it easier and cheaper for UK businesses to export goods to Iceland and vice versa. It would also reduce the cost of imported goods for consumers in both countries, leading to a potential increase in trade and economic activity.

In addition to lowering tariffs, a free trade agreement would also eliminate non-tariff barriers to trade, such as regulatory barriers and technical standards. This would make it easier for UK businesses to comply with Icelandic regulations and vice versa, leading to increased trade and improved market access for both countries.

Another potential benefit of a UK-Iceland free trade agreement is increased investment. The agreement could open up new investment opportunities for businesses in both countries, leading to increased job creation and economic growth.

Negotiations for the free trade agreement are ongoing, and both countries are committed to reaching a mutually beneficial agreement. However, there are still some issues that need to be addressed, such as the protection of intellectual property rights and the recognition of professional qualifications.

While a free trade agreement between the UK and Iceland may take some time to finalize, there is no doubt that it would be beneficial for both countries. By eliminating barriers to trade and investment, the agreement would lead to increased economic growth, job creation, and new opportunities for businesses in both countries.