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THE United States has threatened to impose trade sanctions against Iceland for increasing its whale hunting quota - and it could include a ban on Icelandic fish imports to America.
The warning , which led last night to a diplomatic war of words between the two countries, would, if implemented, be a threat to Iceland's fragile economy. The US is one of its major markets for cod, haddock and shellfish.
The move was announced by US Secretary of Commerce Gary Locke, who is taking the action under the Pelly Amendment, a piece of legislation little known about outside US shores.
The Pelly Amendment to the US Fisheries Protective Act states that "when the Secretary of Commerce or the Secretary of the Interior feels a foreign country is engaging in a trade which diminishes the affect of any international programme for endangered or threatened species, they shall convey this fact to the President. The President may then direct the imposition of trade sanctions on any products from the offending country for any periods that is appropriate, provided it is under the provisions of the General Agreement on Trade and Tariffs (GATT)."
President Obama has two months to decide on what type of sanctions (if any) should be imposed. The move is certainly more decisive and speedier than any possible EU sanctions against Iceland over its controversial mackerel stance.
It has also taken Iceland by surprise with anger being expressed in many quarters. Fisheries Minister Jon Bjarnason expressed his "astonishment" at the announcement. He said in reply that Iceland's whaling was based on sound scientific evidence and was sustainable. Iceland was taking just 216 minki whales from a total population of 70,000 mammals. He pointed out that whale hunting and the trade in whale meat was perfectly legal and in accord with international regulations.
Mr Bjarnason also accused the US of double standards,saying the government criticised fin whale hunting on one hand but ignored the fact that Iceland supported the US in its request for a whale hunt off the north coast of Alaska.
Some in Reykjavik point out that previous administrations have used the Pelly Amendment to warn countries like Norway against minke whale hunting, but in the end did not follow through with trade or diplomatic sanctions. The next two months will tell.
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