European Union Responds Positively: Key Developments

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“This was a productive meeting, even if the subject matter was serious,” said Sigurður Hannesson, executive director of the Swedish Industry Association, speaking on Sýnar’s evening news after meeting with Foreign Minister Þorgerður Katrína Gunnarsdóttir. “We went through the European Union’s tariffs on silicon iron in some detail — where things stand now and what comes next. We’re glad the government has been pushing on this, but I’d point out that we and the companies affected have had our eyes on this for several months already.”

An Atmosphere of Tension in Brussels

“Even with a decision we found deeply disappointing, it was something of a relief to feel that our concerns actually registered in Europe,” Sigurður continued. “Last week in Brussels, our representatives were in the room at significant meetings alongside ministers and members of parliament. The atmosphere was heavy — there’s no other way to put it — but our objections were heard.”

“We made clear that we needed a straight answer from the European Union — from officials and politicians alike — on whether this decision sets a dangerous precedent and whether we should expect more of the same down the line. We’ve been told it shouldn’t be read that way, and that matters,” he added.

A Call for Constructive Dialogue

According to Sigurður, the initial signals from European Union representatives after the decision were, at least, encouraging.

“What this tells me is that we need to concentrate on strengthening the EEA Agreement. Europe is our biggest market. The EEA Agreement is our most important trade arrangement, and we have to keep building on it rather than stepping back.”

The industry association has come out firmly against calls for Iceland to retaliate against the European Union. Parts of the opposition have floated the idea of stalling the adoption of new EEA regulations into Icelandic law.

“Given that the European Union has clearly taken this seriously, dragging our feet on implementation would be the wrong move. We value the lobbying efforts, but what we really need is a major step up in how we advocate our case to Europe — not just at the political and governmental level, but within the business community too,” Sigurður concluded.

Viktor Ólason
Viktor Ólason
Viktor Ólason is an Icelandic entrepreneur and founder of Iceland Now. Born and raised in Iceland, he writes about Iceland travel, culture, and news from a true local's perspective - helping readers experience Iceland more deeply and authentically.

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