Danish trade monopoly in Iceland

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 of Hamburg, increasing the power of the King of Denmark in Iceland.

Danish trading posts in Iceland during the Danish trade monopoly 1602–1786

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Middle ages Settlement of Iceland 870–930 Icelandic Commonwealth 930–1262      Farthings 965      Christianization 999–1118 Sturlung era 1180–1264      Staðamálin 1178–1297 Norwegian rule 1262–1380      Old Covenant 1262 Danish rule 1380–1918      Reformation 1536–1627      Danish trade monopoly 1602–1874 Eruption of Laki 1783–1785
Modern era Independence movement 1809–1847 Prohibition 1915–1989 Kingdom of Iceland 1918–1944      Act of Union World War II 1939–1944      British invasion of Iceland 1940      Allied occupation of Iceland 1940–1945           Invader relationships Founding of republic 1944 Iceland in the Cold War 1947–1991      Cod Wars 1948–1976      Anti-NATO riot 1949 Financial crisis 2008–2011 COVID-19 pandemic 2020–
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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) and Helsingør. From 1620, trade was limited to Copenhagen exclusively.