Deutsche Welle, 15 April 2013
China and Iceland have signed a free trade agreement. While Reykjavik hoped the deal would help boost its battered economy, Beijing's interest was primarily in enhancing its influence in the Arctic.
China and Iceland have signed a free trade agreement. While Reykjavik hoped the deal would help boost its battered economy, Beijing's interest was primarily in enhancing its influence in the Arctic.
The two
nations said the Chinese-Iceland free trade pact would result in the lowering
of tariffs on a wide range of goods and was expected to increase seafood and
other exports from the remote Nordic state to the world's second-largest
economy.
The deal
was inked during a five day visit to China by Icelandic Prime Minister Johanna
Sigurdardottir, highlighting Reykjavik's endeavors to diversify an economy that
was hard hit by the financial crisis in 2008.
"It
also signals the deepening of our relationship, which has been lifted to a new
height," Chinese Premier Li Keqiang said in a statement.
Strategic
move
Analysts
pointed to Iceland's unique importance to China as Beijing has been attempting
to gain a foothold in the Arctic, where melting ice is opening passages for
shipping and could create a boom in the extraction of natural resources such as
oil, gas, diamonds, gold and iron.
Chinais
seeking permanent observer status in the Arctic Council, an eight-nation body
deciding on policies in the region. Beijing recently completed what was by far
the largest embassy complex in the Icelandic capital, reportedly capable of
accommodating a staff of 500.
Trade
between China and Iceland jumped 21.1 percent last year to $180 million (137.6
million euros). Iceland exports mostly fish and imports Chinese products from
ships to shoes.
hg/slk (AP,
AFP)
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