The Second Session of the feasibility study on the China-Iceland FTA was held in Reykjavik, capital of Iceland, from July 3 to 5, 2006. Vice Minister of Commerce Yi Xiaozhun and Valgerdur Sverrisdottir, Iceland's Minister of Foreign Affairs and External Trade, attended the Session.

During the two-day consultations, representatives from both China and Iceland deeply exchanged opinions on issues concerning goods trade, service trade and investment between China and Iceland, and reached a consensus on content and conclusion of the feasibility study. According to the study report, establishment of China-Iceland FTA was beneficial to improve the economic development and people's living standard of the two countries, and the report suggested that Chinese and Iceland governments should launch negotiation as soon as possible. Therefore, work for feasibility study on China-Iceland FTA completely ended.

During the Session, Mr. Yi Xiaozhun met with Valgerdur Sverrisdottir and Jon Sigurdsson, Minister for Trade and Industry of Iceland, and exchanged extensive opinions on bilateral trade and economic relations.

Iceland was the first developed county in Europe to recognize China's full market economy status and also the first one to launch feasibility study with China on free trade area. Mr. Yi Xiaozhun pointed out at the Session that China-Iceland trade and economic cooperation enhanced step by step and bilateral exchanges in other areas were broadened since the establishment of diplomatic relations 35 years ago. In recent years, the exchange of high-level visits between China and Iceland increased, strongly promoting the steady development of bilateral relations. China and Iceland were complementary to each other economically and had a great potential, to further deepen bilateral cooperation would realize mutual benefit and win-win. Iceland representatives said that the feasibility study on China-Iceland FTA was of much significance and to early set up the Free Trade Area would strengthen bilateral trade and economic cooperation and enhance bilateral relations.

Approved by:MINISTRY OF COMMERCE,PRC     Supported by:China International Electronic Commerce Center