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 in the North Atlantic, and clipfish is widely eaten and appreciated in Portugal. The Basques also played an important role in the cod trade and are claimed to have found the Canadian fishing banks before Columbus' discovery of America. The North American east coast developed in part due to the vast amount of cod, and many cities in the New England area spawned near cod fishing grounds. New England profited greatly from the golden trade route between England, Africa, the West Indies, and New England in the 17th and 18th centuries. New England cod went to England and then to