Iceland will not sign defence statement as ‘initial reaction’ to EU metal-trade safeguards

Iceland will not sign a security and defence statement on Thursday, as an “initial reaction” to the EU’s decision to not exempt the country from new metal-trade protective measures, said Foreign Minister Þorgerður Katrín Gunnarsdóttir.

On Tuesday, the European Commission introduced new country-specific limits on ferroalloy imports – used in steel and iron production – granting no exemption for Iceland and Norway.

“This is a heavy and great disappointment” Gunnarsdóttir told Icelandic media RÚV,  saying the move violates the fundamental principles of the country’s European Economic Area agreement with the EU.

Norway and Iceland cover almost half the EU’s needs for ferroalloys, but the bigger fear is that the move sets a precedent that leaves them vulnerable to future trade crossfire.

“I have made it clear that I will not sign the security and defence statement that was supposed to be made on Thursday. That is the initial reaction,” said Gunnarsdóttir.

The second response is to confer with Norwegian colleagues during an EEA council meeting on Thursday, she said. Norway’s Foreign Minister said it will be a “key topic” of the meeting, but ruled out trade countermeasures.

“It is not in Norway’s interest to take countermeasures. We are a small and open economy,” said Norwegian Industry Minister Cecilie Myrseth.

A Commission spokesperson declined to comment on Gunnarsdóttir’s statements.

(cp)