City of Reykjavik's resolution not in line with Iceland‘s foreign policy
On Tuesday, September 15, the ruling majority of Reykjavík City Council passed a resolution instructing the Mayor's Office together with the procurement department of Reykjavík City to implement a boycott of products from Israel, “for as long as the Israeli occupation of Palestinian territory continues”, as the resolution has it.
Municipal councils, like other public entities, are bound by rule of law. Thus the City of Reykjavik must conduct its decision making in line with the law and decisions must not be in breach of current legislation, including legislation on public procurement, according to which it is prohibited to discriminate between enterprises on the basis of nationality or other related criteria.
The decision by the City of Reykjavik to amend its procurement policy by statute, with the effect of boycotting Israeli operators is neither in line with Icelandic law nor with international obligations on public procurement under the WTO, which Iceland is a member of and Reykjavik City and other municipalities are bound by.
The Ministry for Foreign Affairs reiterates that the City of Reykjavik's resolution is not in line with Iceland‘s foreign policy nor should it be seen to reflect on Iceland‘s relations with Israel.