Iceland maintains diplomatic and commercial relations with practically all nations, but its ties with the Nordic countries, Germany, the US, and the other NATO nations are particularly close. Historically, and due to continuing cultural, economic and linguistic similarities, Iceland is considered politically one of the Nordic countries, and it participates in intergovernmental co-operation through the Nordic Council.
Iceland is a member of the European Economic Area (EEA), which allows the country access to the single market of the European Union (EU). It is not a member of EU, but in July 2009 the Icelandic parliament, the Althing, voted in favour of application for EU membership.[55] EU officials mentioned 2011 or 2012 as possible accession dates.[56] Iceland is also a member of the UN, NATO, EFTA and OECD.
Iceland has no standing army. The U.S. Air Force maintained four to six interceptors at the Keflavík base, until 30 September 2006 when they were withdrawn. Since May 2008 NATO nations have periodically deployed fighters to patrol Icelandic airspace under the Icelandic Air Policing mission.[57][58] Iceland supported the 2003 invasion of Iraq despite much controversy in Iceland, deploying a Coast Guard EOD team to Iraq[59] which was replaced later by members of the Icelandic Crisis Response Unit. Iceland has also participated in the ongoing conflict in Afghanistan and the 1999 bombing of Yugoslavia. Despite the ongoing financial crisis the first new patrol ship for decades was launched on 29 April 2009.[60]
Icelanders remain especially proud of the role Iceland played in hosting 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 a series of so-called Cod Wars in 1952–1956 due to the extension of Iceland's fishing zone from 3 to 4 nmi (5.6 to 7.4 km; 3.5 to 4.6 mi), 1958–61 following a further extension to 12 nmi (22.2 km; 13.8 mi), 1972–73 with another extension to 50 nmi (92.6 km; 57.5 mi); and in 1975–76 another extension to 200 nmi (370.4 km; 230.2 mi).
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