Hoyvík Agreement

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The Hoyvík Agreement is an international agreement between Iceland and the Faroe Islands . He sets up a comprehensive free trade area between the two countries.

history

The contract was signed on August 31, 2005 by the Icelandic Prime Minister Davíð Oddsson and the Faroese Prime Minister Jóannes Eidesgaard in the National Museum of the Faroe Islands in Hoyvík , a suburb of the capital Tórshavn . The treaty was ratified by both parliaments in 2006. Since the Faroe Islands belong to Denmark under constitutional law, the treaty still had to be ratified by the Danish parliament in order to become fully valid.

content

It is the most far-reaching free trade agreement between Iceland and the Faroe Islands to date. It guarantees almost unlimited freedom of movement for people, goods, services and capital. It also covers competition policy and subsidies and prohibits any inequality based on citizenship (apart from exceptions stipulated in the treaty). For Iceland it is the first contract that also includes agricultural products. The Icelandic government normally protects this economic sector from foreign influences. A major exception, however, is the fishing industry, which is not covered by the contract. Existing restrictions on foreign investment in industry remain unaffected.

In addition to the purely economic aspects, further measures for closer cooperation were decided. They relate to areas as diverse as culture, education, sport, health care, transport, communication, tourism, environmental protection, energy and resource utilization.

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