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 fishing in Newfoundland had decreased by at least 75% in all stocks, by 90% in three of the six stocks, and by 99% in the case of 'northern' cod, previously the largest cod fishery in the world. After a 10-year moratorium on fishing begun in 1992, the cod had still not returned. It was thought that the local ecosystem might have changed, one possibility being that greater numbers of capelin, which used to provide food for the cod, might be eating the juvenile cod. The waters appeared to be dominated by crab and shrimp rather than fish. However, by 2011 it became apparent