The European Free Trade Area (EFTA) Surveillance Authority is threatening Iceland with legal action over its alleged failure to implement European Economic Area rules on the sale and production of farmed fish.

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It has given Reykjavik two months in which to explain how it will write directive 91/67/EEC, as amended in 1993, 1995 and 1998, into its national statutes.

An EFTA statement highlighted the fact that the legislation provides rules on fish disease programmes that can be operated by member governments, including decisions on whether a farm is judged free of a particular disease.

If Iceland fails to respond in time, it may be taken to the EFTA Court, which has similar powers to the European Court of Justice.

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