Ólafur warns EU talks could put Iceland on international hold

Former Icelandic President Ólafur Ragnar Grímsson has warned that a vote in favour of opening European Union accession talks could leave Iceland in an international “waiting position” over agreements with countries outside the bloc, mbl.is reported.

Speaking to Stefán Einar Stefánsson on mbl.is programme Spursmál, Grímsson said no country would want to negotiate a new free-trade agreement with Iceland or develop existing agreements while the talks were under way.

“No Icelandic companies will be able to reach new markets outside the European Union, which is the most important market in the world because 85% of the world’s market is outside the European Union,” he said.

Grímsson argued that other countries would be deterred from pursuing opportunities with Iceland and would instead wait to see how the negotiations developed. He said this international waiting period could last for years and would carry a substantial opportunity cost for Iceland.