3.5 



ICELAND 



Iceland has a long tradition of fishing. Most of its fishing takes place in the frigid waters of the North Atlantic 

 within its 200-mile Exclusive Economic Zone (EEZ). Iceland's high-seas fleet increased dramatically from 28 

 vessels in 1984 to 61 vessels in 1992. Icelanders fish in the North Atlantic and until recently showed little interest 

 in distant-water fishing. Iceland, however, has vessels built to fish in distant waters and it is likely that Icelandic 

 companies will increase their catch in internationals waters in the near future. Reductions in cod quotas, which were 

 reduced by 25 percent in the 1993-94 fishing year,' will impose economic hardships on some Icelandic firms,^ 

 possibly resulting in the sale of some Icelandic vessels to foreign buyers. Iceland and the European Community 

 reached agreement on fisheries and the marine environment on June 24, 1993. This agreement provides for annual 

 consultations on the allocation of fishing possibilities and could lead to an exchange of access in the coming years. 



CONTENTS 



1. General Background 213 



2. Fleet Background 214 



3. Modernization Programs 215 



4. Decommissioning Programs 215 



5. Shipyards 215 



6. International Agreements 215 



7. Fleet Dispersal Plans 216 



Sources 216 



Endnotes 220 



1. General Background 



Fierce gales and icy conditions require sturdy 

 vessels in order to operate safely in the waters around 

 Iceland. Despite a doubling of the high-seas fleet 

 from 30 vessels in 1986 to 61 vessels in 1992, the 

 Icelandic catch declined from 1.7 million tons 1.5 

 million tons in the same years. The return of capelin 

 from 254,400 tons in 1991 to 794,600 tons in 1992 

 and a projected harvest of over 1 million tons in 

 1993,^ helped increase quantities landed. But these 

 increases have been offset by a decline in cod catches 

 which traditionally have provided an excellent source 



of revenue for the Icelandic economy. Iceland's cod 

 catch peaked at 390,000 tons in 1987. 



Iceland's Fisheries Management Act sets fishing 

 quotas based on the Marine Research Institute's 

 (MRI) research on the state of the various fish stocks. 

 The Ministry of Fisheries has reduced the fishing 

 quotas in recent years in order to secure a larger 

 catch in later years. From the catch quotas for the 

 1993-94 fishing year, it is estimated that the value of 

 the fish catch (in real terms) will decline in 1993 by 



213 



