Marco Rubio signals shift from free trade to bilateral agreements

US Secretary of State Marco Rubio has indicated that the era of broad free trade agreements is unlikely to return ‘for the foreseeable future.’ Speaking in Reykjavik alongside Icelandic Foreign Minister Thorgerdur Katrin Gunnarsdottir, Rubio signaled a shift in Washington’s strategy toward bilateral and reciprocal trade arrangements.

Rubio clarified that his assessment was not specific to Iceland but reflected a broader approach to international trade. He noted that the United States sees more opportunity in bilateral trade agreements and reciprocal understandings between individual nations.

Regarding Iceland specifically, Rubio mentioned that meetings to pursue such an arrangement were already being organized prior to his visit. He also highlighted potential for expanded investment and commercial cooperation in specialized sectors, including biotechnology and pharmaceuticals.