According to a newly-adopted foreign policy from the governing Progressive Party, the time has come for Iceland to consider whether the EEA and Schengen deals are working for them.
The new policy, adopted at the party’s national conference earlier this month, states the EEA agreement formed the basis for the state’s cooperation and positive relationship with the European Union as a whole.
It also claims Icelanders “should continue to seek cooperation with European nations, inside and outside the EU, on grounds of free and fair agreements and cooperation based on equality and mutual benefits.”
But the policy also looks into Iceland’s membership of the EEA – and questions whether it is necessary for the future of the Nordic country.
One reason to quit the allegiance is the UK’s vote to leave the European Union. the report claims.
The Progressive Party claims that due to “fundamental changes” to the EEA that include Britain opting to leave the bloc, the government must look into alternatives.
The foreign policy read: ”The United Kingdom is Iceland”s largest trading partner, both regarding trade in goods and services. Iceland should initiate talks with the British government with the aim of securing at least the current level of trade between the two countries.”
However Iceland is not the only country looking to re-negotiate its ties with the EU and EEA.
Katherine Kleveland, head of NO to the EU in Norway, claims if Iceland quits the trading alliance, Norway must also reconsider its own membership.
Sigbjørn Gjelsvik, of the Centre Party in Norway, agreed – saying: “If Iceland withdraws from the EEA Agreement, it will be meaningless to maintain membership.
“Then we must also look at other options.”