Iceland has become the first European country to sign a trade agreement with China as Beijing seeks to boost its influence in the Arctic region.
The agreement to abolish tariffs – particularly important for protecting Icelandic fish exports – gives a timely boost to the Nordic island’s economy as it struggles to generate growth five years after becoming one of the biggest victims of the financial crisis.
The deal was announced on Monday, when Iceland’s prime minister, Jóhanna Sigurdardóttir, began a three-day visit to China; both sides have stressed their desire to co-operate on Arctic issues as well on culture and tourism.
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