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 fisheries waters to the West of Scotland where cod has continued to decline. It is broadly accepted that the plan has been a failure and has not delivered its objective of recovering the cod stocks in these areas because of the plan’s over reliance on effort (days-at-sea) that created an indiscriminate ‘race to fish’ which in fact increased fishing mortality on the biomass for cod, on other demersal species and had a destructive impact on the benthic zone of the seabed where it is intensely fished. On the other hand, conservation initiatives undertaken by fishermen working in cooperation with government, such