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With the conclusion of the war, a whirlwind of opportunities, relationships, and challenges emerged for the Icelandic people. The question hung in the air: How would this resilient nation navigate its connections with neighboring countries? And what would they make of distant, inviting locales scattered across the globe?
A Little Backstory
To unpack the foreign policies of contemporary Iceland, one must first grasp the essence of its people—their origins, journeys, and aspirations. Thus, a brief historical overview is in order; for a deeper understanding of Iceland’s captivating past, see The History of Iceland.
Settled around 870 AD by Norse explorers seeking refuge from the tyrannical rule of King Harald in Norway, Iceland was a land of untouched birch forests and bounteous fisheries. Among the first settlers were Ingólfur Arnarson and his wife, Hallveig Fróðadóttr, who laid the foundation of what would become the nation’s capital.
Fast forward a few centuries, and Iceland had established itself as the Old Commonwealth, adopting Christianity, forming a parliament, and beginning to document its rich history through sagas. It was during this early period that the seeds of an Icelandic national identity took root.
After a brief civil war, the country succumbed to Norwegian control through the Old Covenant (1262–1264). In the following centuries, Iceland became part of the Kalmar Union (1397–1523) and subsequently fell under Danish rule.
Despite these turbulent changes, Icelanders maintained a fiercely independent spirit, likening the First World War to merely “Europeans fighting again.” While they seized economic opportunities—especially in wool exports—many viewed the war as nothing more than a “killing game,” as noted by MP Skúli Thoroddsen, even as about 1,200 Icelandic Canadians took part in the conflict.
The war left Iceland grappling with significant debt and dwindling living standards, starkly illustrating the profound interconnectedness of nations, even when separated by vast distances.
Any hope for lasting tranquility shattered with the onset of the Second World War, when Iceland was preemptively invaded by Allied forces aiming to thwart a German takeover. This marked the beginning of a cultural duality still present in Iceland today.
By 1944, Iceland transitioned from a Danish territory to an independent republic, taking charge of its own national priorities and governance.
Icelanders Abroad
Across the globe, substantial communities of Icelanders exist, the descendants of waves of emigration from their homeland. The first wave occurred in the late 19th century, provoked by the devastating Laki volcanic eruption in 1783. The catastrophic event obliterated approximately 80% of livestock and caused widespread famine, prompting many to seek a new life elsewhere.
Though precise figures are elusive, estimates suggest that between 10,000 and 25,000 Icelanders emigrated during this period, many landing in the Great Lakes region of North America, especially in Wisconsin and Dakota, as well as parts of Canada.
The emigration to Canada outpaced that to the U.S., partly due to the presence of a Canadian travel agent encouraging Icelanders to seize the chance for a better life. Upon arrival, many Icelanders banded together, often finding work alongside Norwegian and Danish immigrants.
As their numbers grew, a sense of community flourished. According to a 2000 census, over 42,000 Americans identified as descendants of Icelandic immigrants, proudly embracing their heritage. Interestingly, a small yet noteworthy community of Icelandic Brazilians also emerged, tracing their lineage back to a handful of Icelanders who emigrated to South America in the late 19th century.
Iceland and Scandinavia
Unsurprisingly, Iceland’s strongest ties are with its Scandinavian relatives—Sweden, Norway, and Denmark—given their shared ancestry. Icelanders, bearing strikingly similar features like blonde hair and blue eyes, remain grateful for their Scandinavian roots.
The Icelandic language is a linguistic treasure, largely unchanged from Old Norse, allowing contemporary Icelanders to read ancient sagas penned centuries ago, offering a window into their rich history and Norse mythology.
Historically, Iceland has navigated complex relationships with both Norway and Denmark, often causing internal strife as factions vied for power. The Nordic House in Reykjavík serves as an excellent resource for those seeking to understand Iceland’s deep connections to Scandinavia, featuring authentic art, a dedicated library, and traditional Scandinavian cuisine.
Iceland and the United States
The U.S.-Iceland relationship dates back to Leif Eriksson’s legendary voyage to the New World in 999 AD, centuries before Columbus’s arrival. U.S. interest in Iceland was rekindled in the 1880s, with proposals to purchase the island from Denmark ultimately set aside in favor of isolationist policies.
The U.S. again focused on Iceland during World War II, recognizing its strategic significance and preemptively invading to prevent German forces from gaining a foothold. Following a peaceful British occupation, control passed to American forces, ushering in a period of infrastructure development that helped shape modern Iceland into a thriving democracy.
At the war’s conclusion, Iceland and the U.S. formalized their partnership through the Keflavik Agreement, detailing mutual defense obligations and establishing a permanent military presence in Iceland. Over the following decades, this relationship sparked mixed reactions among the Icelandic populace—notably during the Naval Air Station Keflavik’s contentious presence in Icelandic society.
Despite earlier skepticism, the integration of American influences into Icelandic culture has broadened—from the national affection for hot dogs and hip hop to the ubiquitous presence of U.S. commercialism.
Iceland and Poland
Iceland’s diplomatic relations with Poland formally began in 1946, although awareness of each other traces back to 1658 with the publication of a Polish travelogue on Iceland. In 1924, the two countries solidified ties with a Treaty of Commerce and Navigation. A Polish consulate opened in Reykjavik in 1956.
Today, a vibrant Polish community of around 14,000 citizens enriches Iceland, primarily composed of workers who migrated in search of employment opportunities. Their numbers surged in the mid-2000s, though a notable decrease occurred post-2008 financial crisis.
Interestingly, a 2012 census revealed that many Polish immigrants found English to be a more practical language in Iceland, often mastering it before tackling the Icelandic language itself. While some have noted challenges in assimilating Polish residents, they remain the largest ethnic minority, comprising around 3% of the population.
Iceland and Germany
Both members of NATO, Iceland and Germany have cultivated a robust trade relationship, importing and exporting goods ranging from transportation machinery to fish and aluminum. The cultural connection is also significant—Germany has a growing appreciation for Icelandic literature and music, evident from Iceland’s role as the guest of honor at the 2011 Frankfurt Book Fair.
German tourists lead the way in terms of overnight stays in Iceland, with around 40,000 visitors annually drawn to the island’s stunning landscapes and outdoor activities, such as scuba diving in the renowned Silfra Fissure.
Iceland and Israel & Palestine
Diplomatic ties between Iceland and Israel were established on November 29, 1947, while relations with Palestine began on the same date in 2011. Iceland was the first Western nation to recognize Palestine as an independent state.
Iceland’s advocacy for Palestinian rights, highlighted through non-governmental organizations such as the Iceland-Palestine Association, signifies its commitment to humanitarian issues. Tensions have occasionally erupted, such as in 2015 when the Reykjavik City Council proposed a boycott of Israeli goods—a suggestion promptly refuted by the Icelandic government.
Iceland and Great Britain
Located approximately 850 kilometers from Scotland, Iceland’s relations with the British have been marked by both camaraderie and contention. In 1940, the British invaded Iceland, disregarding its neutrality but ultimately retaining a cooperative spirit among Icelanders.
However, the “Cod Wars” of the late 20th century epitomized the conflicts over fishing rights in Icelandic waters, leading to memorable protests and negotiations. The strains have ebbed and flowed, especially during the 2008 financial crisis when the British government controversially labeled Iceland in a similar light to international terrorists—a claim that sparked public outcry.
The idiosyncratic highlight in recent years? The Icelandic national football team’s remarkable victory over England in the 2016 UEFA Euros, a moment celebrated by Iceland and met with chagrin in British tabloids.
Iceland and France
Iceland and France established diplomatic relations in 1946, yet connections date back to the late 18th century when French vessels arrived to exploit Iceland’s fishing resources. French organizations played a pivotal role in building the country’s infrastructure, establishing three hospitals in the early 1900s.
Both nations now focus on expanding cultural cooperation in arts, science, and academia, with projects aiming to enhance French language presence in Iceland.
Iceland and China
Formal diplomatic relations with China began on December 8, 1971, and cooperation has evolved rapidly since then, with significant exchanges in trade and culture. Iceland was the first European nation to sign a Free Trade agreement with China, highlighting its geothermal energy expertise.
The contrasting demographics of the countries—around 335,000 Icelanders versus over 1.4 billion Chinese—highlight the unique relationship forged despite their size disparities.
Iceland and Japan
Iceland formalized diplomatic ties with Japan in 1956. The two nations foster mutual understanding through cultural exchanges, notably the annual Japan Festival at the University of Iceland, which celebrates Japanese culture through various art forms and traditions.
Both countries are commonly engaged in controversial topics, such as the practice of commercial whaling. Their shared experiences on volcanic islands have led to cooperation in fields related to disaster risk reduction.
Iceland and the Russian Federation
Diplomatic relations between Russia and Iceland were established post-World War II, leading to scientific collaborations that advanced Icelandic geological studies. During the Cold War, Iceland became a harbor for Soviet commercial interests, which significantly impacted its economy.
Today, their partnership encompasses inter-parliamentary cooperation, trade, environmental initiatives, and cultural exchanges.
Iceland and the European Union
Iceland has consistently opted out of full European Union membership, choosing instead to engage through the European Free Trade Association and the Schengen Agreement. The nation’s vital fishing industry, coupled with a strong national identity, plays a significant role in this decision.
Despite an application for membership in 2009, the government’s response was swift and dismissive, highlighting the complexities surrounding Iceland’s interactions with Europe.
Iceland and NATO
Founded in 1949 to counter the spread of communism, NATO’s establishment found Iceland as a key member despite some internal skepticism regarding its military affiliation. The country benefits profoundly from NATO’s collective defense clause, which proves vital given its lack of a standing army.
Though non-militarized, Iceland has engaged in various peacekeeping missions abroad, maintaining a significant role as NATO’s “Eye in the North.”
We would love to hear your thoughts on Iceland’s intricate relations across the globe! What stood out to you about this small yet influential country? Share your insights in the comments below!
