The importance of bilateral trade between Iceland and the Nordics

Bilateral trade between Iceland, Denmark, Norway and Sweden was discussed at a meeting in the House of Business last week. The meeting was held by the Danish-Icelandic Chamber of Commerce, Norwegian-Icelandic Chamber of Commerce and Swedish-Icelandic Chamber of Commerce in co-operation with the Iceland Chamber of Commerce and the Ministry for Foreign Affairs.

Gunnar Úlfarsson, economist at the Iceland Chamber of Commerce, presented the Chamber’s analysis of bilateral trade between the four countries, with an emphasis on trade, migration and investment. The main findings of the analysis include:

• Denmark, Norway and Sweden contributed to 13.9% of total foreign trade in Iceland in 2021. Trade with goods accounted for 247 Bn. ISK while trade with services accounted for 115 Bn. ISK
• These three Nordic countries rank in the top 10 places in value of total foreign trades by countries and are therefore immensely important for Iceland.
• In 2001-2021, these three countries contributed to 15.6% of total foreign direct investment in Iceland.

The meeting was attended by members of Iceland Chamber of Commerce and the Icelandic bilateral chambers, along with others interested in bilateral trade. Representatives from the Ministry for Foreign Affairs, which were present at the meeting, used the opportunity to introduce changes in trade agreements and the current priorities.

The Chamber’s analysis of bilateral trade between Iceland, Denmark, Norway and Sweden can be found here.