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.

The monopoly was enacted by a set of laws passed in 1602 and lasted until 1786. During this period, trade was permitted to take place in 20 (later 25) designated trading posts, according to a fixed rate of prices determined by the king. The merchants acquired the rights to the trading posts in exchange for a fixed rent, with the Vestmannaeyjar being rented at a higher price. For the majority of this period, these leases were managed by Danish trading companies, however, from 1759–1763 and 1774–1787 the leases were managed by the Crown directly.

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 merchants based in Copenhagen exclusively. Danish merchants were forbidden to participate in economic activities in the country other than trade until 1777.