Foreign relations of Iceland 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. Foreign relations of Iceland Iceland's closest relations are with Norway and other Nordic states, Canada and the United States. Iceland 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
Presidency of Ronald Reagan treaty also established an inspections regime designed to ensure that both parties honored the agreement. In addition to the INF Treaty, Reagan and Gorbachev discussed a potential strategic arms treaty, known as START, but SDI continued to be a major point of contention. In May 1988, the Senate voted 93-to-5 in favor of ratifying the INF Treaty. Though it was attacked by conservatives like Jesse Helms, the INF Treaty provided a major boost to Reagan's popularity in the aftermath of the Iran–Contra Affair. A new era of trade and openness between the two powers commenced, and the U.S. and the