EEA member. Iceland participates in the EU single market via the EEA Agreement. Compliance scores reflect this regulatory alignment and are not directly comparable to non-EU/EEA sourcing countries.
weighted score 1.2 · nine dimensions
Country Risk Profile
Iceland
Sourcing risk, regulatory exposure and audit intelligence for Iceland-origin supply chains.
Forced & child labour
1
No forced or child labour findings. Not listed on ILAB, US TIP, or any EU watchlist. ITUC rating 1.
Worker rights & FOA
1
ILO C087 and C098 ratified. Trade union density ~90%. Collective bargaining near-universal coverage.
OHS & audit transparency
1
EU-aligned OHS standards via EEA. Labour inspectorate well-resourced. Full audit access and transparency.
Food & product safety
1
EU food safety acquis transposed via EEA. Icelandic Food and Veterinary Authority (MAST) operates to EU standards. Very low RASFF alert rate.
Environmental & regulatory
1
No EUDR-regulated commodities. No IUU card. Fisheries management considered world-leading (ITQ system). Virtually 100% renewable electricity.
Governance & anti-corruption
2
TI CPI 2025: 77. Strong rule of law and institutional transparency. Small-country governance risks (limited institutional depth) but effective anti-corruption framework.
Tariff & preferential access
2
EEA single market access for industrial goods. Fisheries products subject to bilateral protocols with reduced but non-zero tariffs. Not in the EU Customs Union.
Non-tariff barriers
1
EU product standards apply via EEA transposition. No additional non-tariff barriers for industrial goods. Minimal regulatory friction for compliant exporters.
Supply chain traceability
1
Small, transparent economy. Short supply chains. Fisheries traceability excellent (electronic catch documentation). Aluminium supply chain fully traceable to smelter.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- No forced labour findings. Iceland is not listed on any ILAB, US TIP, or EU forced labour watchlists. Very low structural risk.
- Worker rights
- ILO C087 and C098 ratified. Strong trade union density (~90%). Collective bargaining covers effectively the entire workforce. ITUC Global Rights Index rating: 1.
- Working conditions
- Occupational health and safety standards aligned with EU acquis via the EEA Agreement. Labour inspectorate (Vinnueftirlitid) is well-resourced relative to the small workforce.
- Migrant labour
- Seasonal migrant workers in fish processing and tourism sectors. Some reports of precarious conditions for temporary workers, but regulatory framework is robust and enforcement active.
EU Regulatory Exposure
EU Regulatory Exposure
- EEA status
- Iceland participates in the EU single market via the EEA Agreement (1994). EU product safety, environmental, and consumer protection legislation is transposed into Icelandic law. Not an EU member state.
- Trade access
- Full single market access for goods (excluding agriculture and fisheries). No tariffs on industrial goods. Fisheries products subject to separate bilateral protocols with reduced tariffs.
- EUDR exposure
- Minimal. Iceland has no significant production of EUDR-regulated commodities (soy, palm oil, timber, cocoa, coffee, rubber, cattle). No deforestation risk.
- CBAM exposure
- Iceland's aluminium smelting industry uses virtually 100% renewable energy (geothermal and hydro). CBAM declarations required for aluminium exports to the EU but embedded emissions are among the lowest globally.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- North Atlantic → EU ports (Rotterdam, Hamburg, Immingham)
- Key exports to EU
- Aluminium (primary and semi-finished), fish and seafood products, ferrosilicon, medicinal products
- Transit time
- 4-6 days to Northwest Europe by sea
- Infrastructure
- Reykjavik (Sundahofn) is the main cargo port. Limited port capacity relative to larger economies but adequate for trade volumes. No rail network; road transport only on the island.