- Hoyvík Agreement
The Hoyvík Agreement is a
free trade agreement between theFaroe Islands andIceland that was signed31 August ,2005 in the town ofHoyvík in the Faroe Islands.It is the most extensive free trade agreement that either nation has entered into. It guarantees almost complete freedom of goods, services, persons and capital. It also deals with competition and government subsidies and prohibits any kind of discrimination based on nationality except when it is specially provided for by the agreement. The agreement is unique for Iceland as it the first such agreement establishing free trade in agricultural products, a sector that the Icelandic authorities are usually very protective of.
A notable exception to the free trade agreement is the special status of the
fisheries industry. Pre-existing restrictions on foreign investment in the industry present in both countries will not be abolished.In addition to free trade, the agreement also provides a framework for increased cooperation between the nations regarding all the common interests of the nations. Especially mentioned fields of cooperation include: culture, education, sports, healthcare, transportation, communications, tourism, environmental issues, energy and resource management.
The Faroese
Løgting ratified the agreement on2 May ,2006 and the IcelandicAlþingi did the same on3 June .On
21 August ,2006 , a statement was made by the annual general meeting of theWest Nordic Council that the possibility of extending the agreement to includeGreenland (thus creating a West Nordic free trade zone) should be seriously studied.ee also
*
West Nordic Council Links
* [http://althingi.is/altext/132/s/0999.html The draft legislation for ratifying the agreement, includes the full text of the agreement in Icelandic]
* [http://tinganes.fo/?d=2DC9C5DB-C5BC-4372-9C96-E8813A5B4647 A press release from the Faroese government about the signing of the agreement (in Faroese)]
* [http://www.mbl.is/mm/frettir/frett.html?nid=1219422;rss=1 "A West Nordic free trade area possible" (Icelandic)]
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