New Opportunities For Investors
New extensive free trade agreement between China and Iceland offers multiple opportunities for investors. According to the FTA which came into force on July 1 2014, China will implement zero tariff on goods under 7,830 tariff numbers imported from Iceland, which accounted for 81.56 percent of China’s total imports from Iceland, including its aquatic products after the agreement coming into effect.
The FTA opportunities are added value to Iceland‘s already established value proposition for foreign investors consisting of long terms contracts for competitively priced renewable energy, strategic location between North America and Europe, European business legislation and tariff free access to the European inner market as part of European Economic Area, advanced infrastructure, abundance of land and skilled labour force.
Both Chinese investors, looking for opportunities to sell their products and services to Europe, and investors from the US, Canada and Europe, interested in the fast growing Chinese market, have been exploring the possibility of establishing production or value added operations in Iceland.
Fish products are important in Iceland and the FTA offers opportunities to increase the seafood trading even further bearing in mind that prior to the agreement the tariffs were up to 18 percent on export of seafood. In general an FTA serves to lower the prices for consumers in both countries, and to enable a greater market reach by eliminating tariffs.