The Danish–Icelandic Trade Monopoly was a system implemented by Denmark in the 17th and 18th centuries, during a period when Iceland was under Danish-Norwegian rule. Established in 1602, this monopoly granted Danish merchants exclusive rights to trade with Iceland, part of Denmark’s mercantilist strategy to strengthen its economy and power, particularly against the Hanseatic League.
Danish trading posts in Iceland during the Danish trade monopoly 1602–1786. © HistoryMaps
Trade was conducted at designated trading posts, with prices set by the Danish king. Merchants rented these posts, with the Westman Islands fetching higher rents due to their strategic location. The monopoly initially allowed merchants from several Danish cities, but from 1620, trade was restricted to Copenhagen alone. The monopoly was lifted in 1786, marking the end of Danish merchants' control over Icelandic trade, though Danish influence remained strong in the country.