Iceland review - 2015, Síða 108

106 ICELAND REVIEW
East Meets West
Capitalizing on its central location and
well-established relationships with both
North American and European enterpris-
es, Iceland has long since built a bridge between
international markets, providing investors a multi-
faceted and stable environment in which to grow
their businesses and foster emerging ventures.
This is true now more than ever, as Iceland has
become one of the first two European nations
(alongside Switzerland) to establish a free-trade
agreement with China. This extensive FTA, effec-
tive as of July 2014, offers unprecedented oppor-
tunities for North American and European com-
panies to gain a foothold in one of the largest
markets in the world.
Under the terms of the new FTA, there are
zero tariffs on the vast majority of products both
exported from, and imported to, China. This
includes all industrial products exported from
China to Iceland—or 99 percent of the coun-
try’s current exports to Iceland—as well as any
Icelandic products under the 7,830 tariff lines,
which currently account for 82 percent of the
country’s exports to China.
Even a quick glance at EU/US customs duties
on products exported to China reveals the imme-
diate benefits enjoyed by companies based in
Iceland: Carbon fibers and any fabric from these
fibers incur 17.5 percent customs from EU/US
exporters, fresh and/or frozen fish incurs 10-12
percent customs, and poultry 20 percent cus-
toms. None of these products would face any
tariffs if exported from Iceland.
OPPORTUNITIES TO GROW
There are currently over 20 Iceland-based firms
established on the Chinese market. While this
is a relatively small number so far, the variety of
industries represented indicates a diverse range
of opportunities for growth.
As fisheries and related industries have always
been crucial sectors in Iceland, it’s perhaps
addition to those mentioned above, the new FTA
agreement is already benefiting Icelandic firms
specializing in logistics and transport concerns,
clothing production and subcontracting, and the
manufacture of prosthetics and geothermal space
heating systems, among others.
FREE AND EXPERT GUIDANCE
Promote Iceland’s expert team of consultants
offers free and confidential guidance on all
aspects of Foreign Direct Investment in Iceland,
from providing information on existing opportu-
nities and collecting data on the business envi-
ronment, to arranging site visits and meetings
with local authorities, establishing contacts with
regulatory and inspections agencies, and more.
To learn more about the investment opportuni-
ties and benefits posed by Iceland’s new FTA with
China, go to invest.is or contact Promote Iceland
directly at info@invest.is.
not surprising that the two companies already
experiencing success in the Chinese market are
Marel and Promens, both of which have their
roots in fish processing and preservation. Over
the last decade, however, both companies have
expanded into broader, related industries: the
production of advanced food-processing systems
and insulated food containers, respectively. Under
the terms of the current FTA, both of these firms
are well positioned to further expand, for instance,
by establishing manufacturing facilities in China.
Two Icelandic firms, Icelandic Spring and
Icelandic Glacial, have also stepped into the niche
market of bottled water. Increasingly a global sym-
bol of refinement and luxe living, the export of bot-
tled water from Iceland to China could easily grow
into an extremely profitable business, particularly
given that with a seemingly endless supply of this
resource, it will be very easy for Icelandic firms to
increase supply to satisfy an increase in demand.
Another intriguing example of an Icelandic com-
pany already making inroads in the Chinese mar-
ket is that of CCP Games, which has a subscrip-
tion base of 450,000 gamers worldwide. Nearly
65,000 of these customers are located in China,
and interest in the company’s online role playing
games, including EVE Online, is only increasing.
There’s clearly a broad range of opportunities
for new and developing businesses in China. In
Iceland’s free-trade agreement with China opens a window of opportunity for investors.
SPECIAL PROMOTION