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Table 2.1 Organization of main economic and trade-related matters, 2017
Ministries and responsibilities
(...)
Ministry for the Environment and Natural Resources
Forestry and timber products
Fisheries and international trade in wild animals and plants threatened with extinction
GMOs
(...)

Box 2.1 Minister of Foreign Affairs, policy objectives in certain trade-related areas, 2015 16
International trade (...)
• Finalize WTO negotiations on environmental goods
(...)
International agreements (...)
• Participate in discussions on agreements to protect against uncontrolled fishing in the North Sea and protect biodiversity beyond national jurisdictions
(...)

During the Doha Round, Iceland has made proposals or joint proposals in the areas of services; intellectual property; fisheries subsidies; and market access, including for trade liberalization of fish and fish products. More recent communications during 2015-16 have concerned sustainable development in fisheries and on effective disciplines for fisheries subsidies. At the last Ministerial Conference in Nairobi, Iceland contributed to a joint ministerial statement on fisheries subsidies.

Iceland is actively involved in the Trade in Services Agreement (TISA) negotiations among 50 countries to further liberalize trade in services building upon the GATS. As of November 2016, 21 rounds of negotiations had taken place and Iceland had made two conditional offers. These include sector-specific commitments in professional, courier, financial, telecommunications, construction, distribution, tourism & travel, entertainment & sporting, transport, and environmental services.

(...) During the review period, EFTA concluded new agreements that have entered into force with Bosnia and Herzegovina, Central America, and the Gulf Cooperation Council. These FTAs have generally covered the following subjects: trade in non-agricultural products, trade in services, investment, protection of intellectual property, government procurement, competition, trade and sustainable development, cooperation, and dispute settlement. (...)

Iceland, as a signatory of the EEA agreement, is integrated with Norway and Liechtenstein together with the European Union to form the Internal Market, providing for the free movement of goods, services, capital and workers. The European Economic Area also provides for cooperation in competition, state aid, research and development, environment, education, consumer protection, enterprise, tourism, and social policy. (...)

In 2015, Iceland and the European Union concluded new bilateral agreements on agricultural products and GIs under the auspices of the EEA Article 19. The new agreements, which will supersede the previously applicable agreement, will increase market access for agriculture by significantly increasing the number of agricultural products granted duty-free status by Iceland to more than 800 tariff lines, and with reduced tariffs on nearly 200 tariff lines. This results in duty-free trade on nearly all processed agricultural products and above 90% of trade of basic agricultural products. At the same time, many bilateral quotas are increased to gain better access and new ones created; the agreement now provides for Iceland to grant quotas under nine categories of products [31], and the European Union under eight categories. (...)

[31] Beef, pig meat, poultry, poultry – organic/free-range, meat (salted, dried, or smoked), cheese, sausages, and processed meat products.

Iceland also offers incentives pursuant to EU regulations. EU Regulation No. 651/2014 provides the legal basis for Iceland pursuant to the EEA to offer training aid, aid to SMEs, and to environmental protection investment projects.

Since 1 January 2006, pursuant to Iceland's commitments under the EU Directive on packaging and packaging waste , Iceland has levied a recycling fee upon importation on all cardboard, paper, and plastic packaging waste. Certain other categories of products (listed by HS code) are also subject to a recycling or disposal fee upon importation – oil products, organic solvents, halogenated compounds, isocyanates and polyurethanes, paint, printing inks, batteries and accumulators, photographic products, mercury products, pesticides, refrigerants, tyres, motor vehicles, synthetic fishing gear, and electrical and electronic equipment. [49] Importers, at the time of importation, should declare the net weight of all packaging imported into Iceland on the basis of which a fee is levied and collected by Customs. Exported packaging is exempt from the fee provided the exporter can demonstrate the packaging will be transported out of the country. The recycling fees on domestic packaging are collected by regional tax authorities in the same manner as the excise tax. The recycling fee is collected in a recycling fund which is managed by a seven-member board. The fees are then channelled to cooperatives operated by local authorities to offset their costs of operating waste collection and disposal facilities. The fund has been running a surplus in recent years and has set aside the additional amounts for future liabilities. The recycling fee varies depending on type of packaging or product concerned. The fees have been updated several times; as of January 2017, the recycling fee for paper/paperboard packaging was ISK 15/kg and for plastic packaging ISK 16/kg; fees for other products vary considerably, e.g. ISK 0.20/kg for certain oils, ISK 2,880/kg for certain photographic products, and ISK 707/piece for certain batteries for vehicles. In 2015, the recycling fees levied on imported goods amounted to ISK 1,147.2 million.

[49] The law (Act No. 162/2002) provides for a special exemption for manufacturers and importers of electrical and electronic devices if they have their own system for the collection of electric and electronic waste in the country and dispose of it appropriately.

The general excise duty was abolished as of 1 January 2015. However, a specific excise is still charged on certain motor vehicles (e.g. rental cars, taxis, etc.), based on CO2 emissions. (...)