FTA offers multiple opportunities for Iceland, China

 

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The Free Trade Agreement (FTA) between China and Iceland has become one of the topics at the current Arctic Circle Assembly here for bringing Arctic opportunities.

Addressing a breakout session of the assembly, Thordur Hilmarsson, Director of Invest in Iceland under Promote Iceland, said that FTA between Iceland and China offers multiple opportunities for both countries for bilateral trade and investment. For Iceland in particular the FTA agreement opens up for new opportunities regarding FDI projects.

According to the FTA which came into force on July 1, China will implement zero tariff on goodsunder 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.

Hilmarsson said it is really remarkable that China, a country of about 1.35 billion people, is doing a free trade agreement with Iceland with only about 320,000 people.

“In addition to the favorable terms offered by the free trade agreement, foreign investors who would like to put up a production facility to make use of Iceland as a hub for export of their products, are offered considerable incentives according to an incentives scheme currently being processed by the Icelandic Parliament,” he said in an interview with Xinhua before his presentation.

Hilmarsson said that the free trade agreement offers many opportunities regarding foreign direct investment in Iceland as companies from China, Europe, USA and Canada can use Iceland as a production hub to trade without barriers bilaterally.

Fish products are important in Iceland and the FTA offers opportunities to increase the seafoodtrading even further bearing in mind that prior to the agreement the tariffs were up to 18 percent on export of seafood.

“Trade opportunities on the basis of the new free trade agreement seems to be at hand in other categories as well such as in export of alcohol and beverages, food processing equipment, mink skins and fresh water to name a few.”

There are more considerations regarding the FTA.

“The reasons – according to the discussion that has been taken place in Iceland as the country being a member of the European economic area – could open up trade possibilities for China into Europe. Doing this free trade agreement with Iceland it is possible for China to consolidate their international business and also to actually strengthen their abilities to do similar agreements with other European countries,” said Hilmarsson.

The location of Iceland in the Arctic relations is of course of issue because of the potential opening of the passage between Europe and Asia via the Arctic Ocean where Iceland might play a major role as a distribution hub.

“That is something to consider for China as well,” he added.

Ossur Skarphedinsson, MP and former foreign Minister of Iceland who signed the FTA on behalf of Iceland last year and chairs the breakout session of the assembly, told Xinhua that he is very enthusiastic about the possibilities opened up by the FTA between Iceland and China and that it can be very fruitful for Iceland, and hopefully for China too.

 

 

Source : China Daily | November 2, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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