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Iceland's closest relations are with Norway and other Nordic states, Canada and the United States. Iceland also hosted the historic 1986 Reagan-Gorbachev summit in Reykjavík, which set the stage for the end of the Cold War.
Iceland's principal historical international disputes involved disagreements over fishing rights. Conflict with the United Kingdom led to the so-called Cod Wars in 1952–56 because of the extension of the fishing zone from 3 to 4 nautical miles (6 to 7 km), 1958–61 because of extending the fishing zone to 12 nautical miles (22 km) in 1972–73 because of its further extension to 50 nautical miles (93 km) and in 1975–76 because of its extension to 200 nautical miles (370 km). Disagreements with Norway and Russia over fishing rights in the Barents Sea were successfully resolved in 2000. Certain environmentalists are concerned that Iceland left the International Whaling Commission (IWC) in June 1992 in protest of an IWC decision to refuse to lift the ban on whaling, after the IWC Scientific Committee had determined that the taking of certain species could safely be resumed. That year, Iceland established a separate commission – along with Norway, Greenland and the Faroe Islands – for the conservation, management, and study of marine mammals. Since then, Iceland has resumed whaling for scientific purpose and has rejoined the IWC (in October 2002).
The Icelandic Fisheries Ministry issued a permit to hunt 39 whales for commercial purposes on 17 October 2006.[1] 25 states delivered a formal diplomatic protest to the Icelandic government on 1 November concerning resumed commercial whaling. The protest was led by the United Kingdom and supported by others such as Finland and Sweden.[2]
Iceland was the first country to recognise the regained independence of Armenia and Azerbaijan from the USSR in 1990–1991. Similarly, it was the first country to recognise Montenegro's independence from its former union with Serbia.[3] Iceland was also the first country to recognise Croatia, having done so on 19 December 1991.[4] Significantly, Iceland was also the first Western state to recognise Palestine when it did so in 2011. Iceland also is the greatest Nordic contributor per capita to NATO-led troops in Bosnia and Kosovo, to the police in Bosnia and to Bosniab/Kosovan reconstruction, resettlement and relief efforts.
Through the various international organisations in which it participates, Iceland has also increased its involvement in Third World affairs, focusing on development assistance and trade.
Iceland is a member of the following organisations: International Whaling Commission. The Icelandic government currently finances two Programs of the United Nations University that are located in Iceland: the Geothermal Training Programme since 1979 and the Fisheries Training Programme since 1998.
Iceland has an ongoing dispute with Denmark (on behalf of the Faroe Islands) on the one hand and with the UK and Ireland on the other hand, concerning claims to the continental shelf in the Hatton–Rockall area of the North Atlantic under the UN Convention on the Law of the Sea (1982).[5] Iceland's claim covers virtually the entire area claimed by the other three countries, except for a small portion in the south-east corner of the Irish claim,[6] while the Faroes claim most of the area claimed by the UK and Ireland.[7] Negotiations continue between the four countries in the hope of making a joint proposal to the United Nations Commission on the Limits of the Continental Shelf by May 2009.
Following the collapse of Icesave sparking the 2008–2012 Icelandic financial crisis, the U.K. and the Netherlands offered to insure the deposits of the bank's customers. They then sought repayment from Iceland, which held a referendum on the issue in 2010 and 2011, both of which failed. The two governments then said they would take the issue to European courts to seek redress they alleged is owed to them. In January 2013 the EFTA court cleared Iceland of all charges.
Iceland has had a close relationship with the European Union (EU) throughout its development, but has remained outside (instead, joining the European Free Trade Area or EFTA). In 1972, the two sides signed a free trade agreement and in 1994 Iceland joined the European Economic Area which let itself and other non-EU states have access to the EU's internal market in exchange for Iceland contributing funds and applying EU law in relevant areas. The EU is Iceland's most important trading partner with a strong trade surplus in 2008/9 in terms of goods, services and foreign direct investment. Iceland also participates in the Schengen Area (as well as relevant police and judicial cooperation) and has non-voting representation in some EU agencies.[8][9]
However after Iceland's financial crash in 2008, it has sought membership of the EU and the euro. Iceland applied on 16 July 2009 and negotiations formally began 17 June 2011.[10] After an agreement is concluded, the accession treaty must be ratified by every EU state and be subject to a national referendum in Iceland.[11] Since the application was submitted, popular support has declined and contentious issues around Icelandic fisheries may derail negotiations. However the Icelandic government is confident an agreement can be reached based on the flexibility shown by the EU in its previous negotiations with Norway.[12]
The Agreed Minute was a statute governing the nature of the U.S. military presence in Iceland. The Agreed Minute was last renegotiated in 2001. At the time, the U.S. Air Force committed itself to maintaining four to six interceptors at the Keflavík base, supported by a helicopter rescue squad. The Air Force, in order to cut costs, announced plans to remove the four remaining jets in 2003. The removal was then delayed to address Icelandic demands for continued presence of the jets. After an unfruitful series of negotiations and two reshuffles of the Icelandic government the issue lay dormant until early 2006 when the U.S. Air Force issued an official statement that withdrawal of the aircraft was already being prepared. U.S. officials have since then argued that Iceland is in no need of a military presence.
NATO allies since then conduct air policing after the U.S. Air Force withdrawal.
Iceland has its representation in the Philippines through its embassy in Tokyo, Japan, and the Philippines' ambassador in Oslo, Norway is also accredited to Iceland; although both countries established honorary consulates in Reykjavík[54] and Makati City, Metro Manila,[55] respectively.
Sweden, Oslo, Iceland, Russia, Finland
Sweden, Norway, Finland, Denmark, Copenhagen
Sweden, Finland, Iceland, Denmark, Norway
Sweden, Russia, European Union, Turku, Estonia
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Iceland, Althing, Cabinet of Iceland, Icelandic parliamentary election, 2007, Icelandic parliamentary election, 2009
Iceland, Finland, Foreign relations of Finland, Foreign relations of Iceland, Reykjavík
Iceland, South Korea, Foreign relations of Iceland, Foreign relations of South Korea, Beijing
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