The internal approval procedures for the free trade agreement between Iceland and the People's Republic of China have been completed and the agreement will enter into force on 1 July 2014. The bilateral free trade agreement was signed on 15 April last year.
The central aim of the Iceland-China free trade agreement is to promote trade by abolishing tariffs on imports and to further enhance economic ties between the two countries. It covers trade in goods and services, rules of origin, trade facilitation, intellectual property rights, competition and investment.
Furthermore, the free trade agreement entails that the two states should enhance their co-operation in a number of areas, including on labour matters and the environment. A Joint Free Trade Commission will supervise the functioning of the agreement and establishes a framework for resolving trade issues that may arise in the future.