The Danish–Icelandic Trade Monopoly (Icelandic: ''Einokunarverslunin'') was the monopoly on trade held by Danish merchants in Iceland in the 17th and 18th centuries. Iceland was during this period a territory controlled by the Danish-Norwegian Crown. The origins of the monopoly may be traced to the mercantilist policies of Denmark-Norway, and its aim was to support Danish merchants and Danish trade against the

Hanseatic League The Hanseatic League (; gml, Hanse, , ; german: label=Modern German, Deutsche Hanse) was a medieval commercial and defensive confederation of merchant guilds and market towns in Central and Northern Europe. Growing from a few North German to ...

of Hamburg, increasing the power of the

King of Denmark The monarchy of Denmark is a constitutional political system, institution and a historic office of the Kingdom of Denmark. The Kingdom includes Denmark proper and the autonomous administrative division, autonomous territories of the Faroe ...

in Iceland. The monopoly was enacted by a set of laws passed in 1602 and lasted until 1786. Trade took place in 20 (later 25) designated trading posts, according to a fixed rate of prices determined by the king. The merchants divided the trading posts between themselves in exchange for a fixed rent. The Westman Islands were rented at a higher price. Danish merchants were forbidden to participate in economic activities in the country other than trade until 1777. From 1602 until 1619, the trading monopoly was tied to the Danish cities of Copenhagen, Malmö (now in

Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...

) and Helsingør. From 1620, trade was limited to Copenhagen exclusively.

Sources

* Gísli Gunnarsson, ''Upp er boðið Ísaland: einokunarverslun og íslenskt samfélag 1602–1787'', Reykjavík, Örn og Örlygur, 1987. Denmark–Iceland relations Trade blocs Economic history of Denmark History of international trade 17th century in Iceland 18th century in Iceland 1602 establishments in Denmark Former monopolies Foreign trade of Denmark {{iceland-stub