The Danish–Icelandic Trade Monopoly (Icelandic: ''Einokunarverslunin'') was the monopoly on trade held by
Danish merchants in
Iceland
Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...
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
Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce a ...
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
(male), (female) en, Hamburger(s),
Hamburgian(s)
, timezone1 = Central (CET)
, utc_offset1 = +1
, timezone1_DST = Central (CEST)
, utc_offset1_DST = +2
, postal ...
, increasing the power of the
King of Denmark
The monarchy of Denmark is a constitutional institution and a historic office of the Kingdom of Denmark. The Kingdom includes Denmark proper and the autonomous territories of the Faroe Islands and Greenland. The Kingdom of Denmark was ...
in
Iceland
Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...
.
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
Vestmannaeyjar (, sometimes anglicized as Westman Islands) is a municipality and archipelago off the south coast of Iceland.
The largest island, Heimaey, has a population of 4,414, most of whom live in the archipelago's main town, Vestmannaeyja ...
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
Copenhagen ( or .; da, København ) is the capital and most populous city of Denmark, with a proper population of around 815.000 in the last quarter of 2022; and some 1.370,000 in the urban area; and the wider Copenhagen metropolitan ...
,
Malmö
Malmö (, ; da, Malmø ) is the largest city in the Swedish county (län) of Scania (Skåne). It is the third-largest city in Sweden, after Stockholm and Gothenburg, and the sixth-largest city in the Nordic region, with a municipal popul ...
(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 countries, Nordic c ...
) and
Helsingør
Helsingør ( , ; sv, Helsingör), classically known in English as Elsinore ( ), is a city in eastern Denmark. Helsingør Municipality had a population of 62,686 on 1 January 2018. Helsingør and Helsingborg in Sweden together form the norther ...
. 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
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