Iceland–Mexico relations

Icelandic-Mexican relations refer to bilateral relations between the Republic of Iceland and the United Mexican States. Iceland and Mexico established diplomatic relations on March 24, 1964. Iceland has a non resident ambassador in Washington D.C., Mexico has a non resident ambassador in Copenhagen, Denmark. Since then the Icelandic Embassy in Washington D.C. has also served as the Icelandic Embassy for Mexico, in addition to three consulates located within Mexico in Campeche, Guaymas and Mexico City. The Mexican Embassy in Denmark serves as the Mexican Embassy to Iceland, with a consulate in Reykjavik. In 2008 Felipe Calderón said: "Our two countries joined forces under the United Nations to codify the new Law of the Sea and, in particular, work closely to achieve the Exclusive Economic Zone."

History
Iceland and Mexico established diplomatic relations on March 24, 1964.

Iceland and Mexico collaborate over a number of shared interests; in 2001 they reached an agreement on agriculture, signed in Mexico City on November 27, 2000, and effective on October 1, 2001. In 2005 they signed an agreement for the promotion and mutual protection of investments, which was signed in Mexico City on June 24, 2005, and has been in force since April 28, 2006.

On October 24, 2007 Albert Jónsson, the Iceland ambassador to Mexico presented his diplomatic credentials at the National Palace in Mexico City. After the ceremony, Felipe Calderón and Jónsson discussed the current state of Icelandic-Mexico relations. Both want to strengthen bilateral trade and Calderón wanted to cooperate on energy and fishing rights.

Ólafur Ragnar Grímsson, the President of Iceland and Felipe Calderón, the President of Mexico met in March 2008. This was the first time a President of Iceland had made a state visit to Mexico. Thorgerdur Katrín Gunnarsdóttir, Iceland's Minister of Education, Science and Culture accompanied the president and Iceland's first lady on trip. Also attending were members of the Icelandic Ministry of Foreign Affairs, and the Presidential Office, as well as a trade delegation.

Ólafur Ragnar Grímsson addressed the people of Mexico on March 11, 2008, saying: In this new century, mankind eagerly seeks and requires leadership born of the same qualities, searching for solutions to the most fundamental challenge of our times, the threat of climate change, which is so evident in the melting of the ice sheets and the glaciers and the rising sea levels all over the world. Due to the Gulf Stream, Mexico and Iceland are closely linked in this endeavour. Flowing from Mexico into the North–Atlantic, the Gulf Stream encircles my country and constitutes the core of the conveyor belt of ocean currents which in every continent regulates the climate. Cooperation between our countries is therefore both urgent and is endowed with symbolic value, reminding us how all nations now share a common fate, but also demonstrating to others new ways towards solutions. ...

The two leaders discussed common ground, including concerns over climate change, since both nations are directly affected by the Gulf Stream. Also in 2008 the two nations signed a tax treaty to avoid double taxation. The agreement to abolish double taxation was signed by Agustín Carstens, the Mexican Minister of Finance; and the Minister of Education, Science and Culture of Iceland, Thorgerdur Katrín Gunnarsdóttir.

They also signed a treaty on geothermal energy, and one abolishing visas for diplomats.

Roberto del Toro and Mario Alberto Gutierrez of PriceWaterhouseCoopers explain the tax consequences of the double taxation treaty: "Holders of less than 10% of a company's shares would be subject to a 5% withholding tax on dividends, with 15% withholding on all other dividends; withholding on interest and royalties would be 10%. A protocol to the agreement states that the contracting countries make use of provisions of their local laws relating to thin capitalisation; furthermore, interest from back-to-back loans will not be benefit with the treaty provisions."

During the meeting Mexico agreed to support the nomination of Iceland as a nonpermanent member of the United Nations Security Council for the 2009–2010 assembly. The Icelandic Government agreed to nominate Mexico for a position on the council. They also agreed to begin negotiations on an agreement for air transportation between the two countries. On the trip Olafur Ragnar Grimsson gave an interview to Organización Editorial Mexicana and said that "geothermal energy has a future in Mexico."

As of April 2009, Iceland is one of only 37 countries with which Mexico has a tax treaty and one of only 22 where an agreement for a broad exchange of information has been signed.

Trade
In 2008, Iceland was ranked 118th in total trade with Mexico and was ranked 4th among the countries of European Free Trade Association. 2008 bilateral trade was 9.2 million dollars for Mexico. Mexico's exports to Iceland were: metal tubes with threaded ends (46.0%), motor vehicles (18.7%), and lactic acid (2.0%). The major imports from Iceland to Mexico were: cod liver oil (4.6%), gutted fish (3.1%) and roe (2.8%).