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Iceland PM 'looking forward' to FTA with China

By Tuo Yannan in Brussels | China Daily | Updated: 2013-04-15 02:34

Sigurdardottir said the Iceland-China free trade agreement should create increased business opportunities and facilitate trade and cooperation between the two countries.

"With customs duties lowered or at zero, free trade should also lower prices to Icelandic consumers, on Chinese products, and increase competitiveness for Icelandic companies exporting or providing services to China," she said.

According to China's National Bureau of Statistics, bilateral trade between the two countries reached $152 million in 2011, with a 35 percent year-on-year growth.

"Although the trade deficit is large (between Iceland and China), we have seen a lot of increases in trade with China and exports of goods to China for the last decade," Sigurdardottir said.

Deficit reduction

"With the free trade agreement coming into force, I certainly hope that this will have a very positive effect on trade, reducing the deficit."

She said she will also have an opportunity to host a business seminar in Beijing, where future opportunities in trade relations will be discussed. A business delegation with representatives of more than 20 Icelandic companies is expected to attend. Many of these companies already have trade agreements and Memorandum of Understanding that they plan to sign during the visit, Sigurdardottir said.

The prime minister also wants to diversify trade with China in areas including tourism, geothermal utilization and Arctic research.

After the FTA is signed, Iceland will not change its investment policy toward China, she said.

China will play an important role in Iceland's recovery from the economic crisis, and the free trade agreement with China will certainly be important for Iceland's economic growth, debt reduction and job market, the prime minister said.

The total trade in goods of Iceland last year was 1.188 trillion ISK ($9.98 billion), while the total trade in services was 726 billion ISK.

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