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The tourist sector has experienced strong growth in recent years. Tourism grew by more than 37% in real terms in 2016 and was around four times higher than in 2010. The tourist sector is now the country's largest export sector, with a larger share of export earnings (39% in 2016) than the fishing industry and aluminium industry combined. This rapid development, which obviously has a huge positive impact, is also accompanied by a number of challenges. Almost 1.8 million tourists visited Iceland in 2016 and forecasts predict a continued increase this year. This increase in tourism has a major impact on the environment, the housing market, the labour market and most infrastructures.

(...) A carbon tax on all liquid fuels and LPG, and a resource tax on hot water were adopted in 2010. The temporary resource tax on electricity expired in 2016.

(...) In its review, the Government intends to guarantee fair taxation of self-employed persons and SME's and improve coordination of environmental taxes.

The WTO remains at the core of Iceland's trade policy. Iceland is fully committed to a strong multilateral rules-based trading system, including the implementation of existing disciplines and commitments. The WTO system provides legitimacy, transparency and a level playing field in international trade for all the actors in the global economy. It is necessary to strengthen the global trade system in order to move towards sustainable development and shared prosperity.

Although Iceland strongly supports multilateral solutions, it notes that plurilateral agreements can be a powerful tool for trade opening and more liberalization. In many instances, they can provide immediate benefits for trade and growth. Iceland has accordingly engaged in various plurilateral initiatives conducted in the margins of the WTO, including the Information Technology Agreement and the negotiations for an Environmental Goods Agreement. Iceland has also participated in the negotiations on a plurilateral Trade in Services Agreement (TISA) and remains committed to the conclusion of the negotiations. Furthermore, Iceland actively partakes in the plurilateral initiative to prohibit harmful fisheries subsidies. It foresees, as other participants in these initiatives, that they can, once concluded, be integrated into the WTO framework at a later stage.

The EEA (European Economic Area) Agreement covers the four freedoms; the free movement of goods, services, persons and capital, and provides that the same rules shall apply throughout the internal market of the EEA States. In addition, the Agreement covers cooperation in other important areas, such as research and development, education, social policy, the environment, consumer protection, tourism and culture. The Agreement guarantees equal rights and obligations within the internal market for citizens and economic operators in the EEA.

(...) Inclusive trade policies can contribute to advancing gender equality and the economic empowerment of women, which in turn are a fundamental driver of economic growth and prosperity, and play an important role in eliminating poverty and ensuring sustainable development. (...)

(...) Based on stock assessments by the Marine and Freshwater Research Institute (MRFI), total allowable catches (TACs) are established which are allocated to individual vessels under the individual transferable quota (ITQ) systems. In addition, a number of effort and gear restrictions apply, discards of commercial species are prohibited, and a vessel owner may not leave port without an adequate quota for the trip. (...)

Hydro and thermal power sources are abundant in Iceland and electricity prices for industrial consumers are the lowest in the EEA. (...)

Iceland, an island nation, located strategically between Europe and North America, has excellent connectivity, both by air and sea. It possesses plentiful energy resources from geothermal and hydroelectric sources, which has allowed it to have 100% renewable energy and thus one of the most reliable power infrastructures. (...)