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Icelandic Trade Association contemplates legal action against Parliament over controversial meat production laws

Wednesday 10th 2024 on 14:25 in  
Iceland

The Icelandic Trade and Service Association is considering legal action against the Icelandic Parliament (Alþingi) over the introduction of new laws concerning meat production facilities. They argue that the legislation might be in violation of the European Economic Area (EEA) agreement.

The laws in question are seen by the association as unclear, with inconsistencies between the new provisions and other provisions of the country’s agricultural laws, leading to questions over whether the parliament has overstepped its bounds.

The legislation was approved by the Alþingi at the end of March and it exempts meat production facilities in the country from competition laws. This allowed the Kaupfélag Skagfirðinga cooperative to acquire a majority stake in Kjarnafæði-Norðlenska, a significant move reported on Sunday.

There are two main points of contention for the association’s lawyers: whether the matter received legal consideration in parliament according to the constitution and whether the bill breaches Iceland’s obligations under the EEA agreement.

There is confusion over what kind of activities are exempt from competition laws and which service elements these laws apply to. For instance, it is unclear whether companies will be allowed to collaborate with transportation or purchase raw materials related to meat production.

Legal experts have been reviewing the bill for some time and will decide by the end of the summer whether to take the matter to court and which legal provisions to challenge. They are prioritizing a swift resolution due to the urgency of the situation, as they believe more mergers or acquisitions may be looming in this sector.