Business and Commerce

Ice Fishing on Lake Winnipeg in the early part of the 20th century
Reykjavik Museum of Photography

Fishing is the main industry and export in Iceland. It is an important industry in Canada as well but not the main one, being agriculture. Not only is Iceland exporting fish it is also an important supplier of fish catching and processing equipment. They are an important supplier of such equipment to Canada. Canada does supply some of this equipment to Iceland. Iceland is well known for its expertise in fishing so often specialists are also sent to Canada to work on projects with the Canadian fish industry. There is some problems with the fishing industry in Iceland but problems are even greater in Canada. The Canadian Government has to provide vast amounts of aid to the fishing industry in Canada especially on the East Coast of Canada. Canada has been one of Iceland´s main competition in the fish markets, especially in the USA.

Iceland has greater control of its fish resources and continues to provide better and more fish to its markets in North America.

Fishing is not the only link with Canada. There are numerous Icelandic companies that have made in roads into the Canadian market. Some major companies that should be mentioned are Marel Eimskip, Oz. These companies as well as others have also developed an internet presence in Canada Marel Canada, Eimskip Canada. Marel is a food processing equipment manufacturer. It has helped modernize many of Canada’s food processing facilities in particular fish processing plants. Eimskip the Steamship Co. of Iceland has been in the shipping business since 1972 and has been operating out of Nova Scotia ports since 1989. Oz is a good example one of the high tech industry companies that has developed in of Iceland. It can be said that Oz even out grew Iceland as it has now moved its Head Office to Montreal, Canada even though its roots and its software developers remain based in Iceland. There are numerous other Icelandic companies that are also working at capturing their share of the Canadian market. This step not only provides them possible sales in Canada, it also provides them with a chance at marketing to whole North America Market.

Iceland has not been a very big market for Canadian companies but one Canadian company that has taken a big step into the economic life of Iceland is Alcan, the Aluminum Co. of Canada. It has taken a big step and now runs the largest industrial facility operating in Iceland. It owns Alcan Iceland which operates the Aluminum plant at Straumsvik just south of Reykjavik. It employs over 500 people and produced over 170,000 tones of aluminum in 2001. It represents 14% of Iceland´s total exports. It is produced with the assiatance of Iceland´s economical and clean hydro electrical power. It is then sold to mainland Europe. There are other companies that provide goods and services to Iceland from Canada. Iceland provides an entry point into the valuable European market. Alcoa is another large aluminum company that operates in Canada and expanding to Iceland. It has proven to be a reputable company and is welcomed on the East Coast of Iceland as it will provide numerous new jobs both directly and indirectly.

Photos of the Alcan facility Straumsvik

Text of an article on the Embassy of Canada in Iceland website.

Trade with Iceland

Icelandic firms have made several investments in the fisheries sector in Atlantic Canada and which have been a key component of modernization of fish processing facilities. High technology investments in Montreal and in Atlantic Canada have also been important. Both countries are members of NAFO - the Northwest Atlantic Fisheries Organization.

In 2000, bilateral trade amounted to $CDN 101 million, down from $119 million in 1999, with a significant surplus in favour of Iceland. Canadian exports to Iceland totalled $20 million in 2000, down from $30 million in 1999. The decrease is due mostly to the fish and seafood sector although the numbers do not accurately represent the growing trade in shrimp from Atlantic Canada. Other Canadian exports to Iceland include vehicles, furniture, paper and pharmaceuticals. The Atlantic provinces account for 38% of exports to Iceland, while Ontario represents 26.4% and Quebec 23.9%.

Icelandic exports to Canada declined to $81.5 million in 2000 from $89 million in 1999. Fish and seafood products are the dominant Canadian imports from Iceland accounting for almost 70% of Icelandic exports to Canada. Other Canadian imports from Iceland include machinery, animal feed, and prepared meat and fish. Icelandic exports to Canada go overwhelmingly to the Atlantic provinces (83%). Recent trade missions, mainly from Atlantic Canada, have yielded new opportunities for Canadian companies in Iceland.