Sigurður Ingi proposes North Atlantic free-trade area

The world has changed significantly over the past decade, Sigurður Ingi Jóhannsson writes in an opinion article published by mbl.is. He says major powers are increasingly abandoning the principles of international law that have protected small states since the end of the Second World War.

Russia’s illegal invasion of Ukraine and trade wars between customs unions are examples of the new threats and challenges facing Iceland, he writes. Iceland’s prosperity depends on major powers respecting international law and maintaining open trade, he says.

A North Atlantic free-trade area

Following the positive outcome of the referendum on European Union membership, Iceland should look to its neighbours in the North Atlantic, according to Sigurður Ingi. He describes the idea of a trilateral free-trade agreement between Iceland, the Faroe Islands and Greenland, modelled on the Höjvík Agreement between Iceland and the Faroe Islands, as highly interesting.

Interest from the world’s major powers in the Arctic has been growing for various reasons, he writes. Iceland, Greenland and the Faroe Islands, together with Norway, control most of the North Atlantic, while the region’s marine and land resources are in demand.

The three countries share so much that it should be easy to establish a free-trade area to everyone’s benefit, Sigurður Ingi argues. A larger and more unified bloc could then negotiate free-trade agreements with other countries and blocs, including the United States and the European Union.

Stronger ties with neighbours

Iceland should also significantly strengthen cooperation with the United Kingdom, Canada and Norway, he writes. All three are neighbours in the North Atlantic and share Iceland’s values and outlook on life in many areas. Closer relations could boost trade, culture and security, he says.

Nordic cooperation would remain Iceland’s most important partnership. The proposed priorities would supplement existing cooperation with other countries and organisations, including the European Economic Area, the European Free Trade Association and, above all, NATO.

Sigurður Ingi Jóhannsson is a member of parliament for the Progressive Party and sits on the Althingi’s Foreign Affairs Committee.