ABSTRACT
ICELAND played little part in European developments during the first two decades following the Second World War. It joined the European Free Trade Association (EFTA) only in March 1970. The following November it began talks with the European Communities (EC) along with the other non-applicant EFTA states, and formal negotiations began the following year. These were hindered by Iceland’s unilateral decision in 1972 to expand its territorial fishing limits to 50 nautical miles (93 kilometres). Although a Free Trade Agreement was ratified in February 1973, the EC insisted that a satisfactory settlement of the fishing dispute had to be reached before Iceland would be allowed to obtain the full benefits of the Agreement, and an acceptable compromise was not reached until July 1976. After this, there were no significant qualitative changes in the relationship with the EC until the late 1980s, when discussions followed by negotiations on the European Economic Area began. This arrangement satisfied Iceland’s desire for access to the internal market. Hence, unlike most of her EFTA partners, Iceland did not apply for EC membership. Opposition at the level of government to an application persists. This has not, however, prevented relations with the European Union developing further. Iceland, along with Norway, has negotiated participation in the Schengen Agreement.
