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Although the Ministry for Foreign Affairs is responsible for foreign trade policy, other government agencies involved in formulating trade policy, including the Ministry of Industries and Innovation
responsible for fisheries and agriculture policy, and the Icelandic Food and Veterinary Authority in charge of the administration of organic production and monitoring of animal welfare

The European Economic Area (EEA) provides for the adoption of EU laws concerning the free movement of goods, services, capital, and persons, and cooperation in areas such as the environment, although Iceland has some derogations from EEA legislation, such as on house heating, electricity, and waste disposal

A new environmental tax was levied on liquid fossil fuels in 2010 in relation to carbon dioxide (CO2) emissions (2.6-3.1 ISK per litre), while excise duties on various motor vehicles have been lowered on low emission vehicles, but increased on higher emission vehicles

Under international agreements, Iceland prohibits imports of ozone-depleting chemicals in line with the Montreal Protocol to the Vienna Convention for the Protection of the Ozone Layer as well as imports of species covered by the Convention on International Trade in Endangered Species and Wild Fauna and Flora (CITES)

Toxic chemicals and other goods with health and environment concerns are subject to a conditional prohibition, with imports only allowed subject to certain conditions and approval from the Ministry for the Environment and the Environmental and Food Agency

The Government has published policy statements on procurement policy generally and on ecological procurement, while guidelines have also been prepared on electronic procurement methods and procurement that takes account of its impact on the environment

Iceland applies restrictions on some exports, in line with its international obligations such as ozone-depleting substances covered by the Montreal Protocol

Iceland applies licensing requirements on some exports, such as wild animals and parts of wild animals, as well as eggs

Operating licences are required for a number of industries and services, including polluting activities under Act No. 7/1998 on Public Health and Control, and under Regulation No. 785/1999

Act No. 99/2010 on Incentives for Initial Investment in Iceland permits state aids in the categories declared compatible with the common market through EU Commission Regulation (EC) No. 800/2008 for approved investment projects, including research and development assistance or environmental assistance up to a maximum of € 7.5 million