Free trade deal with Iceland terminated
On New Year’s Eve, Faroese authorities terminated the Hoyvíkssátmálin (the Hoyvík Agreement), which is a free trade agreement between the Faroes and Iceland.
The agreement, which dates back to 2005, will remain in force for one more year, after which it will no longer apply.
A key reason for the contract termination is that Icelandic authorities refused to remove the Faroese fishery industry from the agreement, as the Faroese authorities requested.
Faroese trade minister Poul Michelsen is, however, not worried about the consequences of the termination, saying he has no doubt that the Hoyvík Agreement will be replaced by some other commercial treaty.
The new marine resources regulations state that Icelandic capital investments in Faroese fishing vessels must be withdrawn no later than 1 January 2025. This would not be possible under the Hoyvík Agreement.
Translated by prosa.fo