Icelandic officials urged to eliminate food import tariffs to reduce prices

Icelandic authorities are being urged to eliminate import tariffs on food products, as a recent announcement from the Business Council highlights that these tariffs are a primary cause of high food prices in the country. According to the Council, tariffs result in inflated prices, reduced competition, and limited access to certain products, negatively impacting the market.

By removing these tariffs, a significant reduction in food costs could be achieved, greatly benefiting Icelandic households. The Council has analyzed the potential effects of eliminating tariffs on popular grocery items for Icelanders. For instance, the price of mozzarella cheese could decrease by 38%, while Danish chicken breasts might be slashed by 43%. Additionally, Philadelphia cream cheese could see a 38% price drop, and Maarud potato chips could reduce their price by 32%.

The Council encourages the government to adopt these changes, suggesting that previous experiences have shown that removing tariffs can lead to substantial improvements for Icelandic families, including lower prices, a wider selection of goods, and enhanced quality.

Currently, protective tariffs are in place on various food products that face no domestic competition. Tariffs are applied to items where local production fails to meet consumer demand, such as various types of game, cheeses without local equivalents, organic poultry, and certain ice cream products.

The reasons cited for high food tariffs include protecting domestic food production, ensuring rural economic stability, and safeguarding the cultural, social, and historical role of Icelandic agriculture. By removing these tariffs, the Council believes it is possible to achieve both economic and societal benefits for the Icelandic population.