External Trade

Iceland is a member of the Agreement on the European Economic Area (EEA) that unites members of the European Union (EU) and the three EFTA EEA states (Iceland, Liechtenstein and Norway) into one single market governed by the EU basic rules (Acquis Communautaire). These rules cover the so- called four freedoms free movement of goods, capital, services and persons, and competition rules. Iceland is also a partner to many bilateral trade-agreements.

Traditionally fish and fish products have been an outstanding feature of Iceland´s export of merchandise. Before 1970 the share was as high as 90%. Today, Iceland exports a whole range of products but marine products are still its main export or around 42%. Manifacturing products such as aluminium and ferro-silicon accounted for around 39%. Iceland also exports agricultural products such as farmed fish, livestock, dairy products and Eiderdown to name a few.

Whereas exports are fairly concentrated into a few broad groups of commodities, imports are very diversified. Iceland is dependent on imports for its demand of oil and oil products, for its consumption of wheat and use of timber. Among other imports are food and beverages, industrial supplies, fuels and lubricants, capital goods, transport equipment and consumer goods.

In 2007, goods were exported from Iceland for 305,100 million ISK fob and imported into Iceland for 395,200 million ISK fob, 427,400 million ISK cif. Thus there was a trade deficit of 90,100 million ISK compared with 158,500 million ISK deficit in 2006. Exports values increased by 25.7% at current prices while imports decreased by 1.1%. Marine products constituted 41.8% of all exports, increasing in value by 2.6% from the year before at current prices. Manufacturing products were 38.9% of the total exports, increasing in value by 27.5%.

Extensive trade is conducted with countries in the European Union (EU) through the Agreement on the European Economic Area (EEA. In 2007 no less than 78% of Iceland's export markets were within the EU.

Statistics Iceland