Iceland. A. Definitions and sources of data

Iceland A. Definitions and sources of data Data on the stock and flow of foreign direct investment (FDI) in Iceland are compiled by Sedlabanki Islands (Central Bank of Iceland). Quarterly and annual statistics on the aggregated flow and stock of FDI are published in the Bank s annual report and the quarterly publication Monetary Bulletin (which replaced Economic Statistics) and are published on the Bank s website (www.sedlabanki.is). Data compilation by Sedlabanki Islands is in line with international standards. Inward and outward flow and stock data are compiled through annual surveys and are available, from 1988 onwards, with a breakdown by region and by industry. FDI data by region are classified according to the concept of ultimate beneficial ownership. The industry classification follows the United Nations International Standard of Industrial Classification and represents the economic activity of the non-resident direct investment enterprise (outward) and the resident direct investment enterprise (inward). Data do not include bonds and money market instruments, financial leases, and financial derivatives. Cross-border transactions in real estate by non-resident investors are not included. Stock data are reported as book values. The Invest in Iceland Agency, an independent agency of the Ministry of Industry and Commerce, the National Power Company and the Trade Council of Iceland, operates as a one-stop shop for foreign companies interested in investing in Iceland and provides information on investment opportunities and the business climate. In 2000, there were a number of 18 Icelandic parent companies, owning 212 affiliates abroad, and 55 affiliates of foreign transnational corporations operating in Iceland, as reported by Sedlabanki Islands. No further information are presently available on the operations of transnational corporations in Iceland, their affiliates abroad nor foreign affiliates in Iceland. Posting date: 19 September 2005

B. Statistics on FDI and the operations of TNCs

UNCTAD WID Country Profile: ICELAND Page 3 of 22 Table 1. Summary of FDI (Millions of kronur) Variable Inward Outward 1. FDI flows, 2001-2004 (annual average) 19 280.8 70 886.9 2. FDI flows as a percentage of GFCF, 2001-2004 (annual average) 20.7 76.1 3. FDI stocks, 2004 110 410 255 121 4. FDI stocks as a percentage of GDP, 2004 14.2 32.7 Sources : Based on tables 3a and 4; UNCTAD, FDI/TNC database. Notes : Table 2. Summary of international production Variable Home-based TNCs Affiliates of foreign TNCs in Iceland Foreign affiliates of home-based TNCs abroad 1. Number of foreign affiliates, 2000 18 55 212 Source: Based on estimates provided by Sedlabanki Islands (Central Bank of Iceland).

UNCTAD WID Country Profile: ICELAND Page 4 of 22 Table 3a. FDI flows, by type of investment, 1988-2004 (Millions of kronur) Inward investment Outward investment Intra- Intra- Reinvested company Reinvested company YEAR Equity earnings loans Total Equity earnings loans Total 1988.. 455.1 90.5 545.6 7.1-280.7-4.4-278.0 1989 134.5 1 557.3-343.9 1 347.8 129.5 239.7 74.8 444.0 1990 39.0-762.4 1 997.0 1 273.7 233.2 365.1-5.2 593.1 1991 428.5-2 016.1 2 663.6 1 075.9 114.3 113.6 1 319.2 1 547.0 1992 2 379.5-1 832.7-1 255.2-708.4 177.7 140.7-84.7 233.7 1993 1 274.2-1 366.0 141.3 49.6 550.9 194.4 81.9 827.2 1994-172.1 778.4-713.1-106.7 730.5-194.0 1 065.0 1 601.5 1995 476.6 160.0-1 204.5-567.9 268.9-187.0 1 426.1 1 508.0 1996-454.1 930.7 5 093.4 5 570.0 640.6 360.1 3 178.0 4 178.7 1997 4 857.7 1 440.6 4 305.2 10 603.5 2 507.3 40.9 1 337.2 3 885.4 1998 11 278.0 1 126.7-1 573.3 10 831.4 1 684.9 138.3 3 407.0 5 230.2 1999 6 738.9-3 793.8 2 013.2 4 958.3 4 721.8 1 211.9 2 789.3 8 722.9 2000 16 549.8-1 551.6-1 537.3 13 461.0 31 378.9 421.3-1 166.2 30 633.9 2001 21 173.2-2 393.7-1 867.8 16 911.7 26 802.7 4 449.1 2 273.4 33 525.2 2002 10 257.4-3 267.1 1 332.2 8 322.5 21 638.9 12 508.7-4 761.2 29 386.4 2003 5 213.9 5 820.3 13 385.5 24 419.7 20 405.2 13 706.6-5 844.3 28 267.5 2004 11 904.0 23 861.1-8 296.0 27 469.1 143 951.4 18 987.1 29 430.0 192 368.5 Source : Sedlabanki Islands (Central Bank of Iceland), Economic Statistics, Bulletin, various issues and unpublished data. various issues, Monetary

UNCTAD WID Country Profile: ICELAND Page 5 of 22 Year Equity Table 3b. FDI flows, by type of investment, 1976-2003 Inward investment Reinvested earnings Intracompany loans (Millions of dollars) Total Equity 1976.... 5 5........ 1977.... 4 4........ 1978.... 8 8........ 1979.... 3 3........ 1980.... 22 22........ 1981.... 53 53........ 1982.... 36 36........ 1983.... - 23-23........ 1984.... 14 14........ 1985.... 24 24........ 1986 3.. 5 9 2.... 2 1987 6.. - 4 2 1.... 1 1988 4.. - 19-15 1.. 1 1 1989 5.. - 32-27 6.. 2 8 1990 1-13 34 22 5 6 0 12 1991 7-34 45 18 4 2 22 29 1992 41-32 - 22-13 5 2-1 6 1993 18-20 2 0 10 3 1 15 1994-2 11-10 - 1 11-3 15 23 1995 7 2-19 - 9 6-3 22 25 1996-7 14 77 83 10 5 48 64 1997 67 20 61 148 37 1 19 57 1998 161 12-23 150 25 2 49 75 1999 91-52 27 65 68 17 40 125 2000 199-19 - 24 155 391 5-22 375 2001 203-13 - 28 162 265 42 24 331 2002 140-7 - 9 124 265 22-59 228 2003 149-48 46 147 136 31 2 169 Source : International Monetary Fund, Balance of Payments CD ROM, March 2005. Outward investment Intracompany Reinvested earnings loans Total

UNCTAD WID Country Profile: ICELAND Page 6 of 22 Table 4. FDI stocks, by type of investment, 1988-2004 (Millions of kronur) Inward investment Outward investment Intracompany Intra- YEAR Reinvested Reinvested company Equity earnings loans Total Equity earnings loans Total 1988 4 704.. - 676 4 028 1 356.. 1 378 2 734 1989 7 886.. - 1 259 6 627 1 842.. 1 835 3 677 1990 7 418.. 710 8 129 2 328.. 1 825 4 152 1991 5 864.. 3 335 9 199 2 535.. 3 079 5 614 1992 5 652.. 2 225 7 877 3 113.. 3 175 6 288 1993 5 880.. 2 620 8 500 4 651.. 3 635 8 285 1994 6 610.. 2 045 8 655 5 541.. 4 650 10 192 1995 7 448.. 972 8 419 5 733.. 5 989 11 722 1996 7 719.. 5 616 13 335 6 632.. 9 469 16 101 1997 14 364.. 9 882 24 246 8 838.. 10 766 19 603 1998 24 006.. 8 297 32 303 9 822.. 13 902 23 724 1999 25 062.. 9 598 34 660 16 576.. 16 396 32 972 2000 33 177.. 8 959 42 136 40 988.. 15 182 56 170 2001 62 872.. 7 780 70 652 66 829.. 19 941 86 770 2002 56 116.. 8 190 64 305 82 291.. 18 982 101 273 2003 61 824.. 22 798 84 622 110 455.. 12 052 122 507 2004 97 189.. 13 221 110 410 217 984.. 37 138 255 121 Sources : Sedlabanki Islands (Central Bank of Iceland), Economic Statistics, various issues; Monetary Bulletin, various issues; and unpublished data.

UNCTAD WID Country Profile: ICELAND Page 7 of 22 Table 5. FDI flows in the host economy, by industry, 1991-2004 (Millions of kronur) Sector / industry 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total 1 076-708 50-107 - 568 5 570 10 562 10 831 4 958 13 461 16 912 8 322 24 420 27 469 Primary 7-143 - 63-3 31-10 - 14 144 56 26 41-144 - 6-2 Agriculture, hunting, forestry and fishing 4-135 - 21-2 9-1 10-21 55 3-21 - 4 3 1 Mining, quarrying and petroleum 3-7 - 42-1 22-9 - 24 165 1 23 62-140 - 8-3 Secondary 1 073-747 - 81 298-1 335 5 451 9 361 1 756 2 801 11 456 1 317 5 623 4 641 8 171 Food, beverages and tobacco 6 14 4 7 6 92 263-46 2 344 1 173-1 927 423 553 475 Textiles, clothing and leather - 10 2-11 - 2 4 - - - 8 - - 2 - - - - Wood and wood products - - - - - - -.. -.. - - - - Chemicals and chemical products - - - - - - - 100-110 4 004 2 592 1 056 3 376 3 000 Non-metallic mineral products 5-7 - 6 45 31 60 36 - - - - - - - Metal and metal products 1 072-754 - 69 248-1 378 5 278 9 008 1 709 567-74 409 2 108 578 3 126 Machinery and equipment - - - - 2 21 53.............. Office, accounting and computing machinery - - - - - - - - - 6 355 243 2 036 133 1 570 Tertiary - 4 182 194-402 735 129 1 215 8 932 2 101 1 979 15 555 2 843 19 784 19 300 Construction 1-29 5 29 12 34 52 529 535 165 1 808 43-28 - 38 Trade - 100 4 209-740 251 221 46 2 176 705 1 103-462 6 093-6 665 276 Hotels and restaurants - - 9-3 4-20 - - - - 4-1 154 13 31 Transport, storage and communications 5 4-7 108 387-3 1 255-33 - 294 126 19 1 054-1 335-3 352 Transport and storage 5 4-7 108 387-3 448 131-138 - 151-22 2 372-1 043 1 773 Post and communications - - - - - - 807-164 - 156 276 41-1 318-292 -5 125 Finance 90 146-40 40 112-521 - 152 3 268-255 559 2 473 686-771 93 Financial Intermediation 35 166 4 26 28-350 - 0 3 268-255 559 202 655-771 93 Insurance and Pension Funding 55-21 - 45 14 84-170 - 152 - - - 2 272 30 - - Business activities 1-0 - 80 11 395 104 2 874 1 292 6 12 826-5 234 28 656 21 417 Computer and related activities 1-0 - 7 9 67 129 - - - - - - - Research and development - - - 4-138 - 28 - - - - - - - Other business activities - - - 70 2 190 3 - - - - - - - Other services - 58 18 84-42 22-90 119 118 23-1 108 47-85 873 Unspecified - - - - - - - - - - - - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data. Note : Textiles refers also to wood products. Chemicals refers also to petroleum and rubber and plastics. Metal refers also to machinery.

UNCTAD WID Country Profile: ICELAND Page 8 of 22 Table 6. FDI flows in the host economy, by geographical origin, 1991-2004 (Millions of kronur) Region/economy 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total world 1 076-708 50-107 - 568 5 570 10 562 10 831 4 958 13 461 16 912 8 322 24 420 27 469 Developed countries 1 076-709 50-107 - 568 5 551 10 561 10 658 4 889 9 529 14 222 5 920 21 909 24 420 Western Europe 1 459-458 24 363-582 5 334 5 769 6 165 3 817 9 794 219 11 071 24 805 24 149 European Union 309 209 104 254 846 23 627 6 106 1 487 9 885 878 9 584 17 673 25 850 Austria - - - - - - - - 1 - - 1 - - Belgium / Luxembourg - - - 70 2 152 45 5 074-1 880 8 112 5 284 6 208 16 401 24 743 Denmark 22 77-7 97 325 153 184 393 2 705 1 261-3 625 904-2 080 945 Finland 8-1 - 23 2 10 29 25 28-22 62-25 13 368 14 France - - - - - - - - 1 8-561 - 1-1 - 1 Germany 8 30 4 85 397 28 135 73-119 - 2 21-8 5 380-1 944 Ireland - - - - - - - - - 1 - - - - Netherlands 5 4-7 - - 34-1 11 24 39-17 299 14-121 51 Spain - - - - - 9-9 - - - - - - - Sweden 237 106 155-15 129-440 - 15 426 568 657-1 212 2 652-361 2 060 United Kingdom 29-7 - 18 14 19 93 250 89 194-196 697-202 - 1 913-19 Other Western Europe 1 151-667 - 80 109-1 428 5 311 5 142 59 2 330-91 - 659 1 488 7 132-1 701 Faeroe Islands 6 1 19-96 - 1 - - - 3 - - 3 3-5 - 12 Gibraltar - - - - - 28-5 - 3-4 4-7 - 60 15 7 Norway - 146-170 161 83 158 232 1 091 175 1 794 176 1 040 36-428 - 1 958 Switzerland 1 291-498 - 259 122-1 587 5 050 4 056-112 543-270 - 1 689 718-1 419-591 North America - 310-166 - 55-512 - 76 154 4 773 4 137 1 230-203 14 063-4 957-2 844 269 Canada - - - - - 7 - - - 137 119 259 378 229 United States - 310-166 - 55-512 - 76 147 4 773 4 137 1 229-340 13 944-5 216-3 222 40 Other developed countries - 73-85 80 42 90 63 20 356-158 - 63-60 - 195-52 1 Australia - - - - - - - 171 - - - - 136 - - Israel - - - - - - 18 147-142 - 16 - - - - Japan - 73-85 80 42 90 63 2 39-16 - 46-60 - 59-52 1 Developing economies - - - - - - - - - 3 959 2 650 2 267 2 354 2 933 Latin America and the Caribbean - - - - - - - - - 1-2 267-1 140 - South America - - - - - - - - - 1 - - - - Chile - - - - - - - - - 1 - - - - Asia - - - - - - - - - 3 958 2 650-3 494 2 934 West Asia - - - - - - - - - 3 958 2 650-3 494 2 934 Cyprus - - - - - - - - - 3 958 2 650-3 494 2 934 Central and Eastern Europe - - - - - 19 1 173 70-26 40 136 157 116 Latvia - - - - - - - 173 70-26 40 136 157 116 Russian Federation - - - - - 19 1 - - - - - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 9 of 22 Table 8. FDI flows abroad, by industry, 1991-2004 (Millions of kronur) Sector / industry 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total 1 547 234 827 1 602 1 528 4 179 3 885 5 230 8 723 30 634 33 525 29 386 28 267 192 368 Primary - 116 113-322 127 1 239 630 510-246 - 221 249-892 - 351 1 995 Agriculture, hunting, forestry and fishing - 116 113-322 127 1 239 630 510-246 - 221 249-892 - 351 1 995 Secondary 956-68 139 1 045 975-354 2 277 1 937 4 583 5 995 11 591 6 560 10 230 36 344 Food, beverages and tobacco 936-33 132 812 1 002-242 1 462 1 605 2 582-701 9 510 2 321 1 662 22 691 Textiles, clothing and leather 20-40 14 103-70 - 18 43 94 126 154 252 108 190 214 Wood and wood products - - - - 4 3 11 7 - - 174 6.... Chemicals and chemical products - 5-7 130 39-119 - 34 10 672 2 601 1 501 2 796 4 671 11 767 Rubber and plastic products - - - - - 14 15-5 951 479........ Metal and metal products - - - - - - - 179 299 74 217 105 183 141 Machinery and equipment - - - - - 7 781.............. Office, accounting and computing machinery - - - - - - - 46-47 3 388-64 1 225 3 523 1 531 Motor vehicles and other transport equipment - - - - - 1 - - - - - - - - Other transport equipment - - - - - 1 - - - - - - - - Tertiary 591 186 575 879 426 3 293 978 2 783 4 386 24 860 21 685 23 718 18 388 154 030 Electricity, gas and water - - - - - 10 - - - - - - - - Trade 330 106 525 458 109 1 288 598 2 741 2 428-2 057 13 228-448 10 334 2 372 Transport, storage and communications 262 70 49 223 227 1 754 447-331 - 682 2 896-455 - 920-103 10 919 Transport and storage 267 94 31 261 232 1 818 484-283 - 682 2 882-490 - 920-1 201 10 954 Post and communications - 5-24 18-39 - 5-64 - 37-48 - 14 35-1 097-35 Finance - - - - - 169 147 90 154 5 595 2 326 7 850 5 841 115 721 Financial Intermediation - - - - - 169 147 90 154 5 595 2 326 7 850 5 841 115 721 Business activities - 10 1 198 90 73-215 282 2 486 18 427 6 585 17 237 2 317 25 018 Computer and related activities - 9 1 5-5 - 3-194 - 44 67 827 - - - - Research and development - - - - - - - 34 7 270 - - - - Other business activities - 1 1 193 95 76-21 293 2 411 17 330 - - - - Unspecified - - - - - - - - - - - - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data. Note : Textiles refers also to wood products. Chemicals refers also to petroleum and rubber and plastics. Metal refers also to machinery.

UNCTAD WID Country Profile: ICELAND Page 10 of 22 Table 9. FDI flows abroad, by geographical destination, 1991-2004 (Millions of kronur) Region/economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2001 2003 2004 Total world 593 1 547 234 827 1 601 1 528 4 179 3 885 5 230 8 723 30 634 33 525 29 386 33 525 28 267 192 368 Developed countries 606 1 347 92 755 1 262 1 733 3 980 2 887 4 753 7 825 27 242 32 301 27 180 32 301 26 539 181 075 Western Europe 758 382 191 598 672 1 561 4 366 2 088 4 150 6 000 14 471 30 290 24 941 30 290 23 942 180 118 European Union 758 382 201 594 622 1 398 4 233 1 433 3 544 5 725 14 008 18 938 28 559 18 938 24 355 175 207 Belgium / Luxembourg - - - - - 17 105 138 335 2 400 7 322 4 606 17 140 4 606 3 703 18 705 Denmark 33 14 9-39 6 0 71 706 123 238 887 770 440 770 967 85 288 Finland - - - - - - - - - - 18 660 154 660 3 031 1 586 France 343 386 25 121 43 303 705 28 1 408 1 044 759 978-702 978 423 10 503 Germany 5 38 28 44-287 88 622 220 270 53-1 161-143 - 526-143 350 1 847 Greece - - - - - - - - 64 29 63 65-91 65 24 114 Ireland - - - - - - - - - 50 41 40 83 40 1 194-18 Netherlands - 3 108 46 3 541 1 556 36-715 - 69 3 049 696-434 696 1 112 2 121 Portugal - 4 20-40 14 101-89 - 56 24-5 4-23 - 27 12-27 - 7 147 Spain 2 2-4 - 3 404-122 78 373 1 079 1 054-1 115-124 388-124 39 879 Sweden - - - - - - 1 14-2 1 196 545 4 891 6 842 4 891 564 12 282 United Kingdom 379-81 75 411 352 658 1 152-105 987-273 3 622 6 526 5 210 6 526 12 929 41 763 Other Western Europe - - - 10 4 50 163 133 656 606 274 463 11 352-3 619 11 352-413 4 912 Faeroe Islands - - - - 52 134 162 319 162-225 96 222-19 222-259 1 579 Guernsey - - - - - - - - 1 9-9 - 2-6 - 2 6 - Isle of Man - - - - - - - - 100-29 68 10 775-3 332 10 775-96 - 66 Jersey - - - - - - - 140-124 28 232 - - 74 - - - Norway - - - 10 4-2 29-29 195 468 491 79 411-205 411-14 3 421 Switzerland - - - - - - - 2-2 - - 3-54 16-54 - 49-22 North America - 152 962-257 135 571 366-532 826 344 1 304 13 199 2 310 1 990 2 310 2 402 867 Canada 12 21-5 - 12 1 39 64 477 196 462-114 10 13 10 1 990 403 United States - 164 941-252 147 570 327-596 349 149 842 13 313 2 300 1 977 2 300 412 463 Other developed countries - 4 158 22 18-194 147-28 259 522-428 - 299 250-299 195 90 Australia - - - - - 0 - - - - - - 78-176 58 Japan - 4 158 22 18-194 147-28 204 467-414 - 309 166-309 16 28 New Zealand - - - - - - - - 55 55-14 10 5 10 3 5 Developing economies - 12 200 141 72 204-254 266 952 301 810-679 317 319 317 415 11 456 Africa - - - - 62-26 - 8 19 31-4 103 68 29 68-699 7 Namibia - - - - 62-26 - 8 19 31-4 103 68 29 68-699 7 Latin America and the Caribbean 12 49 232 26 123-271 291 341 297 58-52 482 101 482 61 140 South America - - 116 106-5 - 3 45 10 34 120 59 32 74 32 67 79 Chile - - 116 106-5 - 3 2-1 34 120 59 32 74 32 67 79 Falkland Islands (Malvinas) - - - - - - 44 11 - - - - - - - - Other Latin America and Caribbean 12 49 116-80 128-269 246 331 263-62 - 111 450 27 450-7 61 Antigua and Barbuda 12 49 91-68 126-291 89 163-30 - - - - - - - Belize - - - - - - 25 - - - - - - - - - - Greenland - - - - - - 81 32 15-74 - 106 270 18 270-7 61 Mexico - - - - - 71 48 112 243 12-5 181 8 181 - - Panama - - 25-12 2-24 28 24 35 - - - - - - - Asia - 24 151-91 46 19 44-17 592-27 756-730 - 234 190-234 178 10 916 West Asia - 24 151-91 46 19 44-31 577-22 751-726 - 245 197-245 186 10 910 Cyprus - 24 151-91 46 19 44-31 577-22 751-726 - 245 197-245 186 4 374 South, East and South- East Asia - - - - - - 14 15-5 5-4 11-8 11-8 6 India - - - - - - 14 15-5 5-4 11 4 11 2 3 Central and Eastern Europe - - 1 1 135 48-67 47 175 88 4 071 908 1 887 908 1 313-162 Bulgaria - - - - - - - - - - 3 487 527 2 016 527 783 - Estonia - - - - - 2 1-1 - 77 633-99 - 600-99 107-147 Latvia - - - - - 6 9 40 187 39-143 469 295 469 325-274 Lithuania - - - - 135 34-90 - 29-20 - 28 78 10 177 10 109 286 Poland - - - - - 4 5 11 7-14 - - - - - Russian Federation - - - - - - - 24 - - - - - - - 10-26 Slovakia - - 1 1-2 8 2 1-1 1-1 - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 11 of 22 Table 11. FDI stocks in the host economy, by industry, 1991-2004 (Millions of kronur) Sector / industry 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total 9 199 7 877 8 500 8 655 8 419 13 335 24 206 32 303 34 660 42 136 70 652 64 305 84 622 110 410 Primary 451 304 340 282 324 338 331 564 551 488 246 99 65 59 Agriculture, hunting, forestry and fishing 68-77 - 27-13 - 3 13 24 59 117 69 57 54 61 59 Mining, quarrying and petroleum 383 381 367 295 327 325 308 504 434 419 189 46 4 - Secondary 6 195 4 943 5 419 6 004 5 071 9 605 19 186 21 633 22 837 27 558 36 681 35 536 35 409 42 366 Food, beverages and tobacco 44 23 28 34 41 108 365 314 1 076 1 753 2 320 2 613 2 983 3 220 Textiles, clothing and leather 38 40 25 11 15 15 16 3 3 3 - - - - Wood and wood products - - - - - - -.............. Chemicals and chemical products - - - - - - - 1 057 974 1 559 3 540 6 471 9 659 10 793 Non-metallic mineral products 128 105 102 145 176 242 305 - - - - - - - Metal and metal products 5 973 4 764 5 253 5 803 4 824 9 212 18 312 20 259 20 784 23 619 29 914 25 178 21 510 26 507 Machinery and equipment 12 11 12 12 15 28 188.............. Office, accounting and computing machinery - - - - - - - - - 623 907 1 272 1 257 1 845 Tertiary 2 553 2 630 2 741 2 369 3 025 3 393 4 688 10 106 11 272 14 090 33 725 28 670 49 147 67 985 Construction 247 223 233 273 279 300 349 564 681 1 036 2 774 1 300 1 398 1 470 Trade 2 111 2 165 2 283 1 629 1 907 2 154 2 266 2 562 3 615 5 284 6 101 11 203 2 974 3 293 Hotels and restaurants - - 9 6 10 - - - - 2 3 279 267 272 Transport, storage and communications 24 30 23 72 306 325 1 594 1 006 380-24 160 3 568 3 410 2 526 Transport and storage 24 30 23 72 306 325 730 853 380 133 273 1 469 671 1 691 Post and communications - - - - - - 864 153-1 - 157-113 2 099 2 739 835 Telecommunications - - - - - - - 153-1 - 157-113 2 099 2 739 835 Finance 170 208 175 215 323 69 4 2 281 1 781 2 455 3 376 3 013 1 341 727 Financial Intermediation 53 91 98 126 153 4 4 2 281 1 781 2 455 2 565 2 473 1 341 727 Insurance and Pension Funding 117 117 77 90 170 66 - - - - 811 540 - - Business activities 1 1 2 99 106 418 467 3 431 4 196 4 756 19 255 9 061 39 511 59 085 Computer and related activities 1 1 2 8 11 43 115.............. Research and development - - - 4 4 142 130.............. Other business activities - - - 87 91 234 223.............. Other services - 4 17 75 94 126 8 261 619 581 2 057 246 246 612 Unspecified - - - - - - - - - - - - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data. Note: Chemicals and chemical products inclued petroleum refining as well as rubber and plastic products. Textiles includes wood products.

UNCTAD WID Country Profile: ICELAND Page 12 of 22 Table 12. FDI stocks in the host economy, by geographical origin, 1991-2004 (Millions of kronur) Region/economy 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total world 9 199 7 877 8 500 8 655 8 419 13 335 24 206 32 303 34 660 42 136 70 652 64 305 84 622 110 410 Developed countries 9 199 7 877 8 500 8 655 8 419 13 316 24 186 32 058 34 324 41 198 67 639 62 646 79 934 103 065 Western Europe 7 392 6 593 7 137 7 844 7 523 12 193 18 174 21 759 23 157 29 915 38 848 43 937 66 451 86 568 European Union 1 822 1 877 1 959 2 230 2 921 3 173 3 938 7 547 8 086 12 663 17 522 18 659 36 582 57 534 Austria - - - - - - - - 1 1 2 3 3 3 Belgium / Luxembourg - - - 87 91 193 228 2 687 2 023 4 391 10 152 10 040 25 213 46 598 Denmark 769 813 856 969 1 250 1 416 1 740 2 149 3 203 4 472 4 013 4 935 4 180 4 351 Finland 75 63 40 43 52 85 111 138 123 186 187 68 41 54 France - - - - - - - 1-2 2 156 - - 2-3 - 4 Germany 123 161 174 209 435 470 552 626 112 61 85 76 5 456 4 370 Netherlands 24 30 23 25 16 17 28 51 102 100 400 322 239 379 Spain 0 1 1 1-9 - - - - - - - - Sweden 353 320 376 392 541 346 391 845 964 1 687 804 1 875 1 305 1 652 United Kingdom 477 490 489 504 537 637 888 1 053 1 556 1 609 1 880 1 338 146 131 Other Western Europe 5 570 4 716 5 177 5 614 4 602 9 020 14 236 14 211 15 070 17 252 21 326 25 278 29 869 29 034 Faeroe Islands 26 40 57-8 8 3 3 3 6 5 4 6 813 753 Gibraltar - - - - - 32 31 25 21 35 43-41 - 26-19 Jersey - - - - - - - - - - - - - - Norway 869 190 385 475 639 890 2 066 2 335 2 918 3 454 6 212 6 528 6 870 6 523 Switzerland 4 676 4 486 4 736 5 147 3 954 8 095 12 136 11 848 12 125 13 757 15 068 13 183 10 615 9 073 North America 1 375 1 191 1 173 573 565 725 5 603 9 533 10 536 10 716 28 178 18 661 13 438 16 453 Canada - - - - - 7 6-0 85 76 188 329 337 United States 1 375 1 191 1 173 573 565 719 5 596 9 533 10 535 10 631 28 101 18 474 13 109 16 116 Other developed countries 432 93 191 238 331 398 409 767 632 567 613 48 45 44 Australia - - - - - - - 171 171 171 171 35 - - Israel - - - - - - 18 161 16 - - - - - Japan 432 93 191 238 331 398 391 435 445 396 442 13 45 44 Developing economies - - - - - - - - - 623 2 631 1 145 3 993 6 490 Latin America and the Caribbean - - - - - - - - - 1 1 1 145 438 - South America - - - - - - - - - 1 1 - - - Chile - - - - - - - - - 1 1 - - - Other Latin America and Car - - - - - - - - - - - 1 146 438 - British Virgin Islands - - - - - - - - - - - 1 146 438 - Asia - - - - - - - - - 622 2 630-3 556 6 490 West Asia - - - - - - - - - 622 2 630-3 556 6 490 Cyprus - - - - - - - - - 622 2 630-3 556 6 490 Central and Eastern Europe - - - - - 19 20 245 336 315 382 514 695 856 Latvia - - - - - - - 245 336 315 382 514 695 856 Russian Federation - - - - - 19 20 - - - - - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 13 of 22 Table 14. FDI stocks abroad, by industry, 1991-2004 (Millions of kronur) Sector / industry 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total 5 614 6 288 8 286 10 192 11 722 16 101 19 603 23 724 32 972 56 170 86 770 101 273 122 507 255 121 Primary - 106 669 800 760 1 869 2 351 2 690 2 508 3 375 3 807 2 468 1 663 1 977 Agriculture, hunting, forestry and fishing - 106 669 800 760 1 869 2 351 2 690 2 508 3 375 3 807 2 468 1 663 1 977 Secondary 4 251 4 371 5 102 5 886 6 811 6 647 8 879 9 965 14 143 18 324 31 328 32 803 39 816 63 827 Food, beverages and tobacco 4 212 4 363 5 066 5 599 6 530 6 422 8 227 8 868 11 146 10 444 21 792 21 438 22 975 39 720 Textiles, clothing and leather 40-35 139 52 138 178 290 413 680 1 255 1 119 1 176 1 210 Wood and wood products - - - - 4 7 24.............. Coke, petroleum products and nuclear fuel - - - - - - - - - -........ Manufacture of refined petroleum products - - - - - - - - - -........ Chemicals and chemical products - 8 1 148 225 58 127 160 1 763 6 118 7 013 8 668 12 115 18 241 Rubber and plastic products - - - - - 14 15.............. Metal and metal products - - - - - - - 451 672 892 1 206 1 392 1 568 1 578 Machinery and equipment - - - - - 7 309.............. Electrical and electronic equipment - - - - - - - 196 148 191 63 186 1 981 3 080 Office, accounting and computing machinery - - - - - - - 196 148 191 63 186 1 981 3 080 Motor vehicles and other transport equipment - - - - - 1 - - - - - - - - Other transport equipment - - - - - 1 - - - - - - - - Tertiary 1 363 1 810 2 515 3 506 4 151 7 585 8 374 11 069 16 320 34 471 51 634 66 002 81 029 189 317 Electricity, gas and water - - - - - 8 8 10 10 - - - - - Trade 852 1 131 1 806 2 355 2 505 3 853 4 146 6 794 8 858 6 231 14 159 9 142 17 597 19 590 Transport, storage and communications 511 668 697 924 1 331 3 163 3 468 3 094 2 343 5 415 4 944 4 274 4 589 9 331 Transport and storage 323 464 475 710 1 097 2 950 3 282 2 817 2 343 5 413 4 933 4 263 3 388 8 328 Telecommunications 188 204 222 214 234 214 186 276-1 11 11 1 201 1 003 Finance - - - - - 179 362 566 580 5 148 8 717 12 878 19 465 97 390 Financial Intermediation - - - - - 179 362 566 580 5 148 8 717 12 878 19 465 97 390 Business activities - 11 12 226 315 383 392 605 4 530 17 678 23 814 39 708 39 378 63 006 Computer and related activities - 9 10 26 33 20 46.............. Research and development - - - - - - -.............. Other business activities - 2 2 201 282 363 345.............. Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data. Note: For the years 1998-2003 Chemicals and chemical products inclued petroleum refining as well asrubber and plastic products. Textiles includes wood products.

UNCTAD WID Country Profile: ICELAND Page 14 of 22 Table 15. FDI stocks abroad, by geographical destination, 1991-2004 (Millions of kronur) Region/economy 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total world 5 614 6 288 8 285 10 192 11 722 16 101 19 603 23 724 32 972 56 170 86 736 101 273 122 507 255 121 Developed countries 5 354 5 858 7 848 9 322 10 922 15 001 17 426 21 408 30 040 48 813 78 225 91 635 112 327 238 872 Western Europe 2 080 2 182 3 486 4 500 6 134 10 506 11 722 15 065 20 691 33 461 58 063 77 269 96 286 222 985 European Union 2 076 2 179 3 482 4 435 5 935 10 167 10 717 13 563 18 737 31 590 51 447 74 514 94 031 216 199 Belgium / Luxembourg - - - - 11 111 237 686 3 457 11 392 16 311 33 690 36 463 53 979 Denmark 52 63 16 25 25 103 347 418 684 1 415 2 011 1 833 3 093 61 058 Finland - - - - - - - - - - 5 655 593 3 586 4 800 France 710 702 871 944 1 296 1 934 1 805 2 566 2 906 3 544 4 968 4 389 5 009 8 937 Germany 26 66 588 646 669 1 292 1 417 1 838 1 523 1 553 1 737 1 124 1 304 1 519 Greece - - - - - - - 61 89 160 225 130 164 261 Ireland - - - - - - - - 23 228 300 338 1 527 1 333 Italy - - - - - - - - - - 20 21 3-8 Netherlands 3 113 167 178 742 2 226 2 089 1 405 1 317 4 547 5 920 5 191 6 391 8 163 Portugal 40 0 35 137 50 100 116 119 141 90 76 122 46 180 Spain 15 11 7 359 267 335 679 1 798 2 292 1 236 1 345 1 402 1 517 2 257 Sweden - - - - - 1 6-997 771 4 292 8 893 9 302 12 501 United Kingdom 1 231 1 223 1 799 2 146 2 876 4 066 4 022 4 673 5 308 6 660 13 585 16 789 25 626 61 220 Other Western Europe 3 3 4 65 198 339 1 005 1 502 1 954 1 871 6 616 2 754 2 256 6 786 Faeroe Islands - - - 64 190 343 634 844 650 606 736 653 348 1 721 Guernsey - - - - - - - 1 10 2 495 3 9 - Isle of Man - - - - - - - 99 204 197 3 945 164 53 3 Jersey - - - - - - 151 29 18 122 - - 70 - - Norway 3 3 4 1 8-4 219 529 1 072 946 1 499 2 104 1 995 5 234 Switzerland - - - - - - 1 - - - 2-59 - 100-150 - 171 North America 3 270 3 494 4 103 4 529 4 695 4 283 5 526 5 839 8 313 14 665 19 747 13 784 15 252 15 120 Canada 34 30 20 19 55 118 589 711 1 270 1 532 1 804 1 469 3 944 3 995 United States 3 236 3 464 4 083 4 510 4 640 4 164 4 937 5 128 7 043 13 133 17 943 12 315 11 307 11 125 Other developed countries 4 182 259 293 93 213 179 504 1 036 687 415 583 789 767 Australia - - - - 0 - - - - - - 62 260 257 Japan 4 182 259 293 92 213 179 450 927 581 278 396 403 389 New Zealand - - - - - - - 54 109 106 136 125 125 121 Developing economies 260 428 436 717 511 914 1 847 1 849 2 459 1 594 2 106 2 328 2 917 15 019 Africa - - - 103 5 19 41-2 - 24 81 103 114 125 119 Namibia - - - 103 5 19 41-2 - 24 81 103 114 125 119 Latin America and the Caribbean 179 355 368 552 308 634 944 1 176 983 884 1 412 1 329 833 935 South America - 106 184 246 194 239 255 272 378 449 546 464 542 610 Chile - 106 184 246 194 188 255 272 378 449 546 464 542 610 Falkland Islands (Malvinas) - - - - - 50 - - - - - - - - Other Latin America and Caribbean 179 248 184 305 114 395 689 903 605 435 866 864 290 325 Antigua and Barbuda 179 175 111 228-3 91 269 349 - - - - - - Belize - - - - - 8 - - - - - - - - - Greenland - - - - - 79 72 90 85 83 273 271 290 325 Mexico - - - - 72 146 254 346 402 352 594 594 - - Panama - 73 73 78 54 79 94 118 118 - - - - - Asia 81 73 68 63 198 261 862 676 1 500 629 591 886 1 033 12 713 West Asia 81 73 68 63 198 247 847 650 1 475 616 559 847 1 005 12 688 Cyprus 81 73 68 63 198 247 847 650 1 475 616 559 847 1 005 10 156 South, East and South- East Asia - - - - - 14 15 26 24 13 32 39 28 25 India - - - - - 14 15 26 24 13 32 28 26 25 Central and Eastern Europe - 2 2 153 290 186 331 467 473 5 763 6 406 7 310 7 264 1 230 Bulgaria - - - - - - - - - 4 636 4 678 6 190 5 911 - Estonia - - - - 2 1 - - 24 680 710 30 86 - Latvia - - - - 56 84 116 308 364 228 738 849 1 023 870 Lithuania - - - 151 224 83 155 129 54 203 260 240 225 360 Poland - - - - 4 8 24 17 17 13 17 - - - Russian Federation - - - - - - 25 - - - - - 18 - Slovakia - 2 2 2 4 10 10 13 12 3 3 - - - Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 15 of 22 Table 86. Largest home-based TNCs, 2001 (Millions of kronur and number) Company Industry Sales Employees A. Industrial Samherji hf Fishing 13 043 798 a Marel hf Food 8 481 679 Össur hf Precision instruments 6 765 392 Bakkavör hf. Food 6 114 408 Pharmaco hf Pharmaceuticals 4 845 4 713 Grandi hf Fishing 4 750 281 Hampiðjan hf. Machinery and equipment 3 293 404 Sæplast hf Machinery and equipment 2 467 250 B. Tertiary SÍF/ÍS hf Trade 60 518 1 690 SH hf Trade 55 203 1 224 Baugur hf Trade 41 604 1 674 a Flugleidir hf Transport and storage 37 971 2 487 Eimskip hf (The Iceland Steamship Company Ltd) Transport and storage 18 392 1 145 Landsíminn hf (Iceland Telecom) Telecommunications 18 263 1 305 Samskip hf Transport and storage 14 257 805 C. Finance and Insurance Assets Employees Landsbanki Íslands hf (The National Bank of Iceland L Finance 268 926 1 061 Kaupþing hf (Kaupthing Investment Bank) Finance 117 981 369 Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data. a 1999.

UNCTAD WID Country Profile: ICELAND Page 16 of 22 Table 87. Largest foreign affiliates of home-based TNCs, 2001 (Millions of dollars and number) Company Host Economy Industry Sales Employees A. Industrial SIF France (SIF hf) France Food 96 550 SIF Canada Ltd (SIF hf) Canada Food 37 70 Carnitech AS (Marel hf) Denmark Machinery and equipment 23.. Iceland Seafood Corporation (SIF hf) United States Food 21 200 Marel USA United States Machinery and equipment 3 4 Iceland Seafood France SA (SIF hf) France Food 1.. Balmar - Fios, Cordoaria E Redes Lda (Hampiðjan hf) Portugal Textiles.. 76 Katsouris Fresh Foods (Bakkavör Group hf) United Kingdom Food.... Bakkavör Sweden (Lyse) Sweden Food.... Trawl Investments (Hampiðjan hf) Ireland Textiles.... Balkanpharma (Pharmaco hf) Bulgaria Pharmaceuticals.... Icelandic Iberica SA (SH hf) Spain Food.... Coldwater Seafood Corp. (SH hf) United States Food.... SH UK (SH hf) United Kingdom Food.... Iceland Seafood Spain (SIF hf) Spain Food.... SIF Ltd. (Iceland Seafood Limited) United Kingdom Food.... Ossur USA United States Prosthetics.... B. Tertiary Eimskip UK Ltd United Kingdom Transport and storage 4 70 Arcadia Group plc. (Baugur hf) United Kingdom Trade.... Bonus Stores Inc (Baugur hf) United States Trade.... Eimskip Nederland BV. Netherlands Transport and storage.... C. Finance and Insurance R Raphael & Sons Plc (Íslandsbanki hf) United Kingdom Finance 1 9 BI International SA Luxembourg (Bunadarbanki Islands) Luxembourg Finance.... Heritable and General Investment (Landsbanki Íslands hf) United Kingdom Finance.... Kaupthing Bank Luxemburg Luxembourg Finance.... Sources: The Banker's Almanac, 2001 (London, Reed Information Services Ltd, 2001); City Guide to Hungary (Budapest Business Journal/ITD Hungary, 1999); Classic Ratings Database, 2001 (New York, McGraw-Hill Companies, 2001); Foreign Investment in Latin America & the Caribbean (ECLAC, United Nations 2000); Thomson Financial Piranhaweb (http://www.piranhaweb.com); Who Owns Whom, 2001 (London, Dun and Bradstreet Ltd, 2001); Worldscope Database, June 2001, World Investment Directory Asia and the Pacific (Geneva, United Nations, 2000); World Investment Directory Central & Eastern Europe (Geneva, United Nations, forthcoming); Wright Company Analysis (http://profiles.wisi.com/); various company websites, and Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 17 of 22 Table 88. Largest affiliates of foreign TNCs in the host economy, 2001 (Millions of kronur and number) Company Home Economy Industry Sales Employees A. Industrial Íslenska járnblendifélagið hf. Norway Metal and metal products 5 456 173 Íslenska álfélagið hf. Switzerland Metal and metal products.. 500 Norðurál hf. United States Metal and metal products.. 150 Kísiliðjan hf. United States Metal and metal products.. 51 Ísaga ehf. Sweden Chemicals and chemical products.. 29 AFA JCDecaux Ísland ehf. Denmark Printing and publishing.. 6 B. Tertiary Skeljungur hf. United Kingdom Trade 16 160 370 Olíuverslun Íslands hf. Denmark Trade 12 446 306 Íslensk erfðagreining hf. United States Research and development.. 500 C. Finance and Insurance.......... Source : Sedlabanki Islands (Central Bank of Iceland), unpublished data.

UNCTAD WID Country Profile: ICELAND Page 18 of 22 C. Legal framework for FDI 1. National policy framework Iceland has a welcoming attitude towards FDI. As of December 2001, the main features of the national FDI regime includes the following: Entry and establishment: Non-residents may invest in a business enterprise in Iceland with some limitations, which are stipulated in the Act on Investment by Non-residents in Business Enterprise or in specific legislation, and upon the fulfilment of other conditions and acquisition of licences required by law. Restrictions apply in the energy area where only Icelandic entities and entities domiciled in another member state of the European Economic Area, are permitted to own energy exploitation rights as regards waterfalls and geothermal energy for other than domestic use. The same applies to enterprises which distribute energy. Ownership and control: Foreign ownership of business is basically unrestricted. There are however a few ownership and control restrictions in specific fields of strategic importance, such as fishing operations and fish processing. Also, the maximum total shareholding owned by non-residents (except residents from the EEA) in Icelandic airline companies is 49 per cent. Special permission must be obtained in the case of investment in Icelandic enterprises by foreign states, foreign municipalities or other foreign authorities. Board membership of Icelandic companies by individuals resident outside the EEA/OECD is subject to restrictions but the Ministry of Commerce may grant exemptions. Operational conditions: Private individuals and companies domiciled in other EEA countries may purchase property if it is to be used as a permanent residence or business premises. Non-residents need permission from the Ministry of Justice to purchase real estate. A company domiciled in any of the other member countries of the EEA or OECD has essentially the same right to operate in Iceland as an Icelandic-domiciled company. Citizens of EEA countries do not need a work permit in Iceland. New foreign enterprises operating in Iceland that set up a branch or subsidiary are obliged to register with the Register of Limited Companies. Specific licences may be requested for certain types of operations in Iceland. Foreign exchange controls: No restrictions are imposed in Iceland on buying or selling of foreign exchange. Investment Incentives: Broadly speaking, Iceland does not offer direct subsidies for foreign investment. Its prime incentives lie in low corporation tax, competitive labour costs and payroll costs, and low electricity prices. Industrial sites are available around Iceland at competitive cost. Local communities may offer certain incentives. However, as a member of the EEA, Iceland has access to European Union research funds for R&D programmes and joint ventures undertaken with companies from at least one other EEA country. Grants are issued for specific projects on a case-by-case basis by bodies including the New Business Venture Fund and Science Fund. Starting in 1999, special incentives are granted for film and TV production in Iceland. Source: Ministry of Industry and Commerce of Iceland, Invest in Iceland (2001). Internet (http://www.invest.isl);(http://brunnur.stjr.is/interpro/ivr/ivreng.nsf/pages/ 1D0BF7F2BFA75BE400256896004 1EE44). Main legislations relating to FDI

UNCTAD WID Country Profile: ICELAND Page 19 of 22 Industrial Act No 42 of 1978; amended by Act No. 23 of 1991; Act No. 70 of 1993; Act No. 40 of 1997. Patents Act No. 17 of 1991; amended by Act No. 67 of 7 May 1993; Act No. 36 of 10 May 1996; Act No. 91 of 29 May 1996. Design Protection Act No. 48 of 1993; amended by Act No. 36 of 1996; effective 1 June Registration of a Design Regulation No. 178 of 1994; amended by Regulation No. 285 of 1996.1996. Trade Marks Act No. 45 of 1997; effective 1 June 1997. Investment by Non-residents in Business Enterprise, Act No. 34 of 25 March 1991; amended by Act No. 121 of 27 December 1993, Act No. 46 of 22 May 1996. Operation and Marketing of Non-resident Undertakings for Collective Investment in Transferable Securities (UCITS) in Iceland Regulation No. 369 of 31 August 1993. Foreign Exchange Act No. 87 of 17 November 1992; Foreign Exchange Regulation No. 679 of 29 December 1999. Activities of Stock Exchanges and Regulated Over-the-Counter (OTC) Markets Act No 34 of 6 April 1998. Obligation to Provide Information Regarding Foreign Exchange Transactions and Capital Movements between Countries Rules No. 13 of 1995. Branch and a Representative Office of a Credit Institution Established in a Country Outside the European Economic Area Regulation No. 307 of 25 May 1994; Regulation No. 308 of 25 May 1994. Establishment of the Icelandic Investment Bank Ltd Act No. 60 of 26 May 1997. Competition Act No. 8 of 25 February 1993; amended by Law No. 24 of 1994; Law No. 83 of 1997; and Law No. 82 of 1998. Private Limited Companies Act No. 138 of 1994; amended by Act No. 2 of 1995. Establishment of Limited Liability Companies to Operate Landsbanki Islands and Búnaoarbanki Islands Act No. 50 of 1997. Industrial Act Regulation No. 620 of 1995. Official Supervision of Financial Operations Law No. 87 of 16 June 1998. Securities Transactions Act No. 13 of 28 March 1996. The European Economic Interest Grouping Act No 159 of 1994. New Business Venture Fund Act No 61 of 26 May 1997. International Trading Companies Act No. 31 of 10 March 1999. 2. International framework a. Multilateral instruments

UNCTAD WID Country Profile: ICELAND Page 20 of 22 Paris Convention for the Protection of Industrial Property of 20 March 1883, as amended and revised. Convention on the Settlement of Investment Disputes between States and Nationals of Other States of 18 March 1965, signed on 25 July 1966, effective 14 October 1966. ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, adopted on 16 November 1977. The Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, adopted on 5 December 1980 by the General Assembly of the United Nations (resolution 35/63). Convention Establishing the Multilateral Investment Guarantee Agency of 11 October 1985, signed on 24 July 1998. Agreement on Trade-Related Investment Measures, signed on 15 April 1994; in force on 1 January 1995. General Agreement on Trade in Services, signed on 15 April 1994; in force on 1 January 1995. Fourth Protocol to the General Agreement on Trade in Services of 15 February 1997. Fifth Protocol to the General Agreement on Trade in Services of 12 December 1997. Agreement on Trade-Related Aspects of Intellectual Property Rights, signed on 15 April 1994; in force on 1 January 1995. b. Regional instruments Convention Establishing the European Free Trade Association, signed in Stockholm on 4 January 1960, in force on 3 May 1960. The Convention was amended on serveral occasions. Code of Liberalisation of Capital Movements, adopted by the Council of the Organization for Economic Cooperation and Development on 12 December 1961. The Code was amended on several occasions. Code of Liberalisation of Current Invisible Operations, adopted by the Council of the Organisation for Economic Cooperation and Development on 12 December 1991. The Code has been amended on several occasions. Declaration on International Investment and Multilateral Enterprises, adopted by the Council of the Organisation for Economic Cooperation and Development on 21 June 1976. The Declaration and the Guidelines for Multinational Enterprises attached to the Declaration were revised on several occasions (1979, 1984, 1991 and 2000). Energy Charter Treaty of 17 December 1994; effective since16 April 1998. c. Bilateral treaties 1. Bilateral investment treaty for the protection and promotion of investments with China 31 March 1994; Latvia 11 June 1998; Lithuania 20 Sept 2002; Slovakia 05 April 2002; Viet Nam 20 Sept 2002.

UNCTAD WID Country Profile: ICELAND Page 21 of 22 2. Bilateral treaties for the avoidance of double taxation with Belgium 23 May 2000; Canada 19 June 1997; Canada 17 Dec 2003; China 03 June 1996; Czech Republic 18 Jan 2000; Estonia 16 June 1994; France 29 Aug 1990; Germany 18 March 1971; Greenland 05 July 2002; Ireland 17 Dec 2003; Italy 10 Sept 2002; Latvia 19 Oct 1994; Lithuania 13 June 1998; Luxembourg 29 April 1975; Luxembourg 04 Oct 1999; Netherlands 25 Sept 1997; Poland 19 June 1998; Portugal 02 Aug 1999; Russian Federation 26 Nov 1999; Slovakia 15 April 2002; Spain 22 Jan 2002; Switzerland 03 June 1988; United Kingdom 27 April 1928; United Kingdom 27 April 1997; United Kingdom 30 Sept 1991; United States 27 Dec 1962; United States 07 May 1975; Viet Nam 01 April 2002.

UNCTAD WID Country Profile: ICELAND Page 22 of 22 D. Sources of information Official Sedlabanki Islands Invest in Iceland Agency Secondary 1. Economist Intelligence Unit, Country Profile: Iceland 2000/2001 (London, Economist Intelligence Unit, 2000). 2. Economist Intelligence Unit, Country Report: Iceland (London, Economist Intelligence Unit, 2000). 3. Kelly, Robert C., Debra Ewing, Stanton Doyle and Denise Youngblood (ed.), Iceland Country Review 2000 (CountryWatch.com, 1999), 80 p. 4. Lyons, Maryanne B. Investment in Iceland, Marketing on Iceland, Overseas Business Reports (US Department of Commerce, September 1992), pp. 17-19. 5. Reina, Peter and Jonathan Barnes, "Largest Iceland investment draws environmentalist fire", ENR, April 7, 2003, 250 (13), p. 18. 6. USA International Business Publications, Iceland Business & Investment Opportunities Yearbook, 3 rd ed., vol. 1 (USA: International Business Publications, forthcoming) 350 p. 7. WTO, Trade Policy Review: Iceland (Geneva: WTO, 2000).