Iceland: Review of Agricultural Tariffs
On September 17, 2015, Iceland and the EU reached an agreement to reduce agricultural tariffs and increase meat and dairy quotas. The agreement will come into effect on May 1, 2018, agricultural tariffs for 340 product categories will be eliminated and tariffs reduced for 20 product categories. It is estimated that over 90 percent of agricultural products from the EU will be able to enter Iceland duty free. This agreement will make some U.S food products 10-30percent more expensive and is likely to result in fewer U.S. agricultural imports. Demand for food and agriculture products has risen dramatically in the past several years due to the rise in tourism and it is possible that it could surpass the quotas.