Iceland weighs earlier arguments in EFTA case

Iceland’s foreign minister has not decided whether the country will rely on its previous legal arguments in a case brought by the EFTA Surveillance Authority (ESA), mbl.is reported. Þorgerður Katrín Gunnarsdóttir said she believed ESA would probably drop the case if parliament passed her bill on Protocol 35, but there was no guarantee.

ESA has taken Iceland to the EFTA Court, a court that hears disputes under the EFTA framework, arguing that Icelandic law does not give incorporated European Economic Area rules sufficient precedence. Iceland must submit its defence by November 30.

Speaking to Morgunblaðið after a cabinet meeting on Friday, Þorgerður said the government would defend Iceland’s interests, but its immediate priority was getting the bill passed. She hoped parliament would approve it in November, adding that the government was also preparing for other aspects of the case.

Asked who was leading preparations, she named the foreign ministry’s trade department, which had taken the lead so far, but did not give details about the legal team or who would represent Iceland. She said the case had been discussed in cabinet and that the next steps would include work with parliament’s foreign affairs committee.

Þorgerður said she considered it more likely than not that the EFTA Court would reach a less favourable outcome for Iceland if the case proceeded. However, she stressed that ESA’s withdrawal was not certain, despite her view that it was likely if the bill was passed.

Asked whether Iceland could use arguments approved by Katrín Jakobsdóttir’s government in four letters to ESA in 2020 and 2021, Þorgerður said they could probably be used, but that she still needed to review them. She noted that the previous government had also tried to pass a bill on Protocol 35. The current government, she said, intended to take political responsibility and fulfil Iceland’s obligations under the EEA Agreement.