Faroe/Iceland free trade deal renewed

Foreign minister Jenis av Rana called on Parliament to cancel the termination of the free trade deal with Iceland shortly before Christmas after discussions with Icelandic authorities.

Faroese authorities terminated the so-called Hoyvíkssáttmálin (the Hoyvík Agreement) on New Year’s Eve 2018 as part of the fishery industry reform. It was decided at the time that the agreement, which dates back to 2005, would remain in force for one more year, after which it would be scrapped.

At Friday’s vote, MPs voted 16 in favour and 13 against cancelling the termination.

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The opposition submitted two amendment proposals ahead of the vote: the first sought to amend section 6 in the agreement to the effect that both parties could determine their own procedures regarding foreign ownership in the fishery industry.

The second amendment proposal aimed at removing the legal status of the agreement. Both proposals were voted down.

MPs will meet again tomorrow for the mandatory third reading of the 2020 budget.

Translated by prosa.fo