Trade between China and Iceland is expected to get a boost with the ratification of a Free Trade Agreement (FTA) by the parliament of Iceland on Wednesday. 

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Only two members of the Althing, Iceland's parliament, voted against the passing of the resolution. Two abstained while an overwhelming majority or 56 members voted for the resolution.

The new trade agreement is expected to open excellent business opportunities for the two countries and will further improve Iceland's ties with China not only in trade but in other aspects, according to Icelandic Foreign Minister Gunnar Bragi Sveinsson.

Xie Guioxiang, the Chinese Embassy's head of its economic and commercial counselor's office in iceland, said that the approval of the FTA is an indication of the strong determination of the two countries to further promote economic as well as trade ties. He lauded the FTA and considers it a major breakthrough for both countries.

China and Iceland began FTA negotiations in December 2006 but were put on hold in 2009 because of Iceland's bid for membership in the European Union.

The negotiations continued in 2012 and a final agreement resulting from 6 meetings between the two countries was signed in April 2013 during the official visit to China of Icelandic Prime Minister Johanna Sigurdardottir.

In the newly ratified FTA, no tariff will be levied by Iceland on imported fishery and industrial products from China, which make up 99.77 percent of China's total exports to Iceland.

On the other hand, no tariffs will be levied by China on goods imported from Iceland belonging to 7,380 tariff numbers which include aquatic products.  The tariff-free goods make up 81.56 percent of Iceland's total exports to China.

Upon the full implementation of the FTA, no tariff will be levied on 96 percent of goods as far as tariff number is concerned.  This accounts for 100 percent of total trade volume.