Political overview
Iceland is a parliamentary republic with legislative powers vested in the Althing (Parliament). The Althing is made up of 63 members directly elected by proportional representation for four-year terms. Following each election, the President gives a leader of a political party the authority to form a cabinet, usually beginning with the leader of the largest party. If unsuccessful; the President will ask another political party leader to form a government.
The president is elected by direct popular vote for a term of four years, with no term limit. Judicial power lies with the Supreme Court, Court of Appeal and the district courts.
Foreign policy
Iceland is a member of the United Nations (1946) and a founding member of the North Atlantic Treaty Organisation (NATO, 1949), the Organization for Economic Cooperation and Development (OECD, 1960), the Organization for Security and Cooperation in Europe (OSCE, 1973) and the World Trade Organization (WTO, 1995).
Iceland is not a member of the European Union (EU) but is a member of the European Free Trade Association (EFTA) and the European Economic Area, which entitle it to access the EU market.
Bilateral relations
Australia and Iceland established diplomatic relations on 17 April 1984 and enjoy friendly relations. Australia and Iceland are likeminded partners who share a commitment to democratic values, human rights, gender equality, defending internationally agreed rules and norms and promoting trade liberalisation.
Australia and Iceland continue to pursue ever closer cooperation, including on green transition and further multilateral engagement.
Fast Facts
- Icelandic visitors to Australia (2023) – 950
- Australian visitors to Iceland (2023) – 5,920
- Resident Australian population born in Iceland (2021 census) – 267
- Australian residents of Icelandic descent (2021 census) – 1,328
High Level Engagement
2022 – Prime Minister Albanese met Katrín Jakobsdóttir at the NATO Summit in Madrid in June.
Agreements and arrangements with Iceland
- Double taxation (2022)
- (with the United States) Cooperation in geothermal technology (2008)
- (with Liechtenstein and Norway) Mutual Recognition in Relation to Conformity Assessment, Certificate and Markings (2000
Texts of bilateral agreements are available at the Australian Treaties Database.
Economic diplomacy
In 2023, two-way goods and services trade between Australia and Iceland was valued at approximately $403.7 million. That year, Australia’s principal exports to Iceland were aluminium ores, services, recreational travel and business-related travel. Imports from Iceland to Australia were mainly recreational travel, manufactured articles, medical electrodiagnostic apparatus and business-related travel.
More economic and trade information can be found in the Iceland country fact sheet [PDF].
Australian Embassy
The Australian Embassy in Copenhagen has diplomatic accreditation to Iceland.
Travel
See Smartraveller for Information on travelling to Iceland.