"In general an FTA serves to lower the prices for consumers in both countries, and to enable a greater market reach by eliminating tariffs. This will be very important for producers in Iceland especially in the fish processing industry," he said.

"The FTA will give the Icelandic fishing industry an advantage with regard to the competing nations to create a good market for our traditional fish products, such as cod, herring, even mackerel, " he said.

"I also have hopes for markets in China for Icelandic lamb products. Such products already are competitive with regard to prices, and with zero tariffs this might lead to important trade for the agricultural sector in Iceland with China." he added.

Skarphedisson said that Iceland has, as part of the EEA, an unlimited access to the EU market.

"That, in combination with the FTA and the green renewable energy on offer in Iceland this invites the possibility of Chinese investments in Iceland to produce goods to export to the EU market without tariffs. That seems a very attractive option that needs to be examined," he said.

"I always have maintained that the FTA should eventually lead to cooperation between Chinese and Icelandic flight operators on direct flights between Iceland and China. Iceland could become a hub for Chinese travelers to Europe and the United States, and I believe the time has come to explore such possibilities very seriously," he added.

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