US Considering Free Trade Agreement With Iceland Skip to content
Minister of Foreign Affairs Guðlaugur Þór Þórðarson and US Vice president Mike Pence led a US-Icelandic Business Roundtable.
Photo: Minister of Foreign Affairs Guðlaugur Þór Þórðarson and US Vice president Mike Pence led a US-Icelandic Business Roundtable..

US Considering Free Trade Agreement With Iceland

The Trump administration is considering a free trade agreement with Iceland, Axios reports. This comes on the heels of Vice President Mike Pence’s Iceland visit, during which Pence warned Iceland not to rely on Chinese technology and praised their decision not to participate in China’s Belt and Road Initiative, although no such decision had been made.

According to the Axios report, it isn’t Iceland’s economy that’s tempting the Washington leaders, but the country’s strategic location. The President’s national security team has apparently emphasised the importance of investing in the region. The idea of a trade agreement was floated at a Senate GOP lunch last Tuesday, according to Axios, where Pence reportedly told those in attendance that a working group was exploring a deal and that he was “amenable” to the idea. Minister of Foreign Affairs Guðlaugur Þór Þórðarson has made no secret of his wish for a free trade agreement with the US.

According to Axios, the intention of the trade agreement would be to encourage an alliance with the US, instead of Iceland building relationships with Russia and China. Iceland has had a free trade agreement with China since 2014 and when Vice President Pence congratulated Iceland on not participating in the Belt and Road initiative, both the Prime Minister and Minister of Foreign Affairs quickly corrected him, stating that while Iceland hadn’t yet agreed to participate, no decision to decline participation had been made. China’s Ambassador to Iceland Jin Zhijian has called the Vice President’s comments on the Belt and Road Initiative and Huawei “malicious slander” and “fake news.”

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