Foreign relations of Iceland 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 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
Cod the Sacred Cod of Massachusetts, in its chambers. Apart from the long history, cod differ from most fish because the fishing grounds are far from population centers. The large cod fisheries along the coast of North Norway (and in particular close to the Lofoten islands) have been developed almost uniquely for export, depending on sea transport of stockfish over large distances. Since the introduction of salt, dried and salted cod (clipfish or 'klippfisk' in Norwegian) has also been exported. By the end of the 14th century, the Hanseatic League dominated trade operations and sea transport, with Bergen as the most