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 other crises, and is still an important Norwegian fish trade. The Portuguese began fishing cod in the 15th century. Clipfish is widely enjoyed in Portugal. The Basques played an important role in the cod trade, and allegedly found the Canadian fishing banks before Columbus' discovery of America. The North American east coast developed in part due to the vast cod stocks. Many cities in the New England area are located near cod fishing grounds. The fish was so important to the history and development of Massachusetts, the state's House of Representatives hung a wood carving of a codfish, known as