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Iceland

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Last reviewed: 03 April 2009 

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INTERNATIONAL RELATIONS

The Icelandic government has made clear its continued support for the EEA agreement between EFTA and the European Union, which came into force in January 1994 and was extended to cover the 10 new EU members in May 2004, but opted for a two-year delay in allowing the free movement of labour provision, which has now been implemented. The same delay two-year delay has been applied to Romania and Bulgaria following their EU accession in January 2007. Iceland's EU membership has still to find itself onto the political agenda, with the most frequently heard comment being that the EEA addresses Iceland's needs in full. However, this may change following the formation of a new coalition government in May 2007, though EU membership was not an election issue. The Social Democratic Alliance are supportive of EU accession, and PM Geir Haarde, though not outwardly supportive, is at least prepared to allow discussion of the issue, unlike his predecessor David Oddsson. The coalition agreement between the Independence Party and the Social Democratic Alliance advocates the creation of an Althing committee to monitor how EU developments might impact on Iceland’s interests and how changes in Iceland (such as instability of the Krona) might prompt a rethink on EU membership.

Iceland is active in Nordic and Arctic regional co-operation. It chaired the Nordic Council of Ministers in 2004, and the Arctic Council from 2002-2004. In July 2005, Iceland took over the Chair of the Council for Baltic Sea States for 12 months. Iceland shares the main ideals and objectives of its NATO allies in world affairs. It has no armed forces but in 2001 established an Icelandic Crisis Response Unit (ICRU) with a roster of over 100 experts (police, medical, legal, engineers etc) specially trained to be deployed to trouble spots at short notice. The ICRU successfully managed Pristina airport in Kosovo in 2003/04 and took over management of Kabul airport in Afghanistan on 1 June 2004. It recently provided two eight person mobile observation teams, one based in the city of Meymana in northern Afghanistan and the other in Chaghcharan in the western part of the country and will provide additional support to the running of Kabul airport. Iceland has also committed funds to NATO (£500,00 approx) to pay for airlift of equipment to Afghanistan.

The United States has undertaken to defend Iceland under the terms of the 1951 bilateral defence agreement and Iceland also benefits from the mutual defence provisions of NATO. On 30 September 2006, the US withdrew the last of its aircraft and air-sea rescue helicopters together with personnel, from the Keflavik base. The US has, however, agreed to continue to abide by obligations under the 1951 defence agreement to defend Iceland. Iceland is campaigning for a seat on the UN Security Council for the 2009/10 session.

Iceland's relations with the UK

Despite the hiatus of the Cod Wars in the mid 1970s, bilateral relations are excellent, reflecting historical ties and many common interests including free trade, defence, environmental protection and international peace and good order. 2006 is the 30 Anniversary of the end of the last Cod War. There is a steady flow of visits in both directions, most recently by the Icelandic Foreign Minister and Prime Minister in January and February 2006.

However, there have been disagreements about whaling. The UK, on behalf of 22 other countries, presented a demarche to Iceland on 10 September 2003, which was followed in 2005 by a joint statement by the Ambassadors of the UK, France and Germany, protesting against the killing of Minke whales for scientific purposes. In October 2006, Iceland announced it was to resume commercial whaling, in contravention of a global moratorium. The British Government was swift to condemn this move. Marine Affairs Minister Ben Bradshaw summoned the Icelandic Ambassador to the UK to explain this decision and convey the British government’s dismay. On 1st November 2006, the British Ambassador to Iceland, H.E. Alp Mehmet, delivered a demarche on behalf of 25 countries, including Britain, expressing extreme disappointment at Iceland’s decision. The text of the demarche declared: “We repeat our countries’ opposition to this operation and urge the Government of Iceland to reconsider its position and reverse this unnecessary decision and to abandon its current whaling operations.”

Recent Visits

Outward to Iceland

  • Denis MacShane, FCO Europe Minister - 20-22 July 2004
  • Ben Bradshaw, Fisheries Minister - 10-12 August 2004
  • Cherie Blair - 26-30 August 2004, University of Reykjavik Conference on Women and Law
  • Sylvia Heal, Deputy Speaker of the House of Commons - 6 October 2004
  • Suzanna Becks, Deputy Assistant Commissioner, Metropolitan Police - 8 October 2004, to the Icelandic Police Chiefs Annual Conference
  • Sir Howard Davies, Director of the London School of Economics - January 2005
  • Cherie Blair- 27-31 August 2005, Conference: "Women's Empowerment: Measuring the Global Gender Gap."
  • Sir Michael Jay, Permanent Under Secretary, Foreign & Commonwealth Office, 9-11 October 2005
  • Baroness Amos, 1 December 2005
  • George Reid, MSP, Presiding Officer, Scottish Parliament, and Scottish Parliamentary delegation, 10-13 April 2006
  • Sir John Bourn, Auditor General, 8-11 September 2006
  • Allan Wilson, MSP, Deputy Enterprise Minister, Scottish Executive, 11-13 October 2006

Inward to the UK

  • Prime Minister David Oddsson - 27 April 2004, to give a speech at Oxford University
  • MFA Permanent Secretary Gunnar Snorri Gunnarsson and Political Director Sturla Sigurjonsson - 23 November 2004
  • Thorgerdur Katrin Gunnarsdottir, Minister of Education, Science and Culture - January 2005
  • Geir Haarde, Foreign Minister to meet Jack Straw on 18 January 2006
  • Halldor Asgrimsson, Prime Minister, to meet Tony Blair, 22 February 2006
  • Fisheries Minister Einar Kristinn Gudfinnsson to meet Ben Bradshaw, UK Fisheries Minister 23 March 2006
  • Olafur Ragnar Grimsson, President of Iceland opened UK/Iceland inward investment seminar at Lancaster House, 25 May 2006
  • President Grimsson unveiled Seafarers' Sculpture by Steinun Thorarinsdottir in Hull, 22 June 2006
 

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