On behalf of the European Union, I would like to welcome Iceland's Delegation, led by Mr. Ragnar G. Kristjánsson, Director General for External Trade and Economic Affairs (Ministry for Foreign Affairs).

I would also like to thank the WTO Secretariat and the Government of Iceland for their comprehensive reports, which form the basis for our discussion today. Let me thank the Discussant, H.E. Ambassador Clare Kelly of New Zealand for the introduction to the main developments in Iceland’s economy and its trade with the rest of the world since Iceland’s last Trade Policy Review.

Mr Chairman, the EU would like to start by praising Iceland for the strong recovery of its economy after COVID, as the country has enjoyed an economic growth of an average of 2.9% during the period under review. Iceland is also continuously rated among the top countries in the world as regards economic well-being and living standards. This is an example of the vital importance of external trade for a small open economy.

Iceland is a close partner of the EU. EU-Iceland trade in goods amounted to 9,3 billion euro in 2022. Services exchanged between the EU and Iceland are on an increasing path since 2010 and amounted to 3,2 billion euro. The EU is by far Iceland's most important trade partner.

Trade relations between the EU and Iceland are covered by our free trade agreement from 1972 and the European Economic Area Agreement. This year marks the 30^th anniversary of the entry into force of the European Economic Area Agreement, which unites 30 countries and nearly half a billion people to long-term shared prosperity, peace and stability. The EEA Agreement extends the EU Single Market, with free movement of goods, services, capital and persons and with a few exceptions notably on agricultural products and fisheries. As a Member of the EEA, many of Iceland's trade and trade-related policies and laws are closely related to those of the European Union.

Within this general overall positive context, the EU considers that there are still room for improvement notably on the use of auctions to attribute tariff rate quotas that could negate the benefits for consumers of these quotas.

Lastly, the EU is pleased to note that all capital control measures that were introduced to ensure economic stability were removed.

I would like to commend Iceland for its support for the multilateral trading system and its active participation in the work of this Organisation. In particular, let me highlight Iceland’s leadership and contribution to the fisheries subsidies negotiations. Iceland was among the first members to formally accept the Agreement on Fisheries Subsidies and to contribute to the WTO fisheries funding mechanism. I would like to thank in particular Ambassador Gunnarsson as Chair of the Negotiating Group on Rules and also State Secretary Eyjolfsson who facilitated the phase 2 negotiations at MC13 on fisheries subsidies for their dedication and tenacity. They brought us the closest we have ever been to an agreement on the comprehensive disciplines on fisheries subsidies.

Iceland is party of the plurilateral Agreements on Government Procurement and Information Technology and participates in all joint initiatives on e-commerce, investment facilitation for development, domestic regulation in services and MSMEs.  Iceland is actively participating in important environment and climate related WTO work including on Dialogue on Plastic Pollution, Fossil Fuel Subsidies Reform, and Trade and Environmental Sustainability Structured Dialogue and in the last one was also a facilitator for one of the Working Groups.

Restoring a fully functioning dispute settlement system remains the EU’s number one reform priority. We recognise that Iceland is participating in the Multi-party interim appeal arbitration (MPIA) arrangement that provides a temporary framework for resolving WTO disputes.

The EU has posed some advance questions to Iceland in the area of customs procedures, tariffs and fisheries and we thank for the replies received in advance of the meeting due to Iceland using the alternative timeline for its TPR.

On behalf of the EU, I wish Iceland a very productive and successful 6^th Trade Policy Review.