Iceland

 

Bureau of European and Eurasian Affairs                                       
July 2007                                                                     
                                                                       
  Background Note: Iceland                                                    
                                                
  A boardwalk leads to the warm-water                                         
  Blue Lagoon in Svartsengi, Iceland,                                         
  May 11, 2002. [© AP Images]                                                 
                                                                       
  Flag of Iceland is blue with a red cross outlined in white extending to the 
  edges of the flag; the vertical part of the cross is shifted to the hoist   
  side.                                                                       
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Iceland                                                         
                                                                       
  Geography                                                                   
  Area: 103,000 sq. km. (39,600 sq. mi.); about the size of Virginia or       
  slightly larger than Ireland.                                               
  Cities: Capital--Reykjavík (pop. 117099). Other towns--Kópavogur (27,835),  
  Hafnarfjörður (24,111), Akureyri (16,887).                                  
  Terrain: Rugged.                                                            
  Climate: Maritime temperate.                                                
  Highest elevation: Hvannadalshnjúkur at Vatnajökull Glacier, at 2,111 meters
  (6,925 ft.).                                                                
                                                                       
  People                                                                      
  Nationality: Noun--Icelander(s). Adjective--Icelandic.                      
  Population (April 1, 2007): 309,699.                                        
  Annual growth rate: 2.6%.                                                   
  Ethnic group: Relatively homogenous mixture of descendants of Norwegians and
  Celts.                                                                      
  Religion: Evangelical Lutheran, 86%.                                        
  Language: Icelandic.                                                        
  Education: Compulsory up to age 16. Attendance--99%. Literacy--99.9%.       
  Health: Infant mortality rate--2.9/1,000. Life expectancy--men 79.4 years,  
  women 83 years.                                                             
  Work force (2007, 176,300): Commerce--30.7%; manufacturing--9.5%; fishing/  
  fish processing--5.0%; construction--8.7%; transport and                    
  communications--7.0%; agriculture--3.8%; government, education, and         
  health--27.7%; other services--7.6%. Unemployment (2007): 2.0%.             
                                                                       
  Government                                                                  
  Type: Semi-presidential, parliamentary.                                     
  Independence: 1918 (became "sovereign state" under Danish Crown); 1944      
  (establishment of republic).                                                
  Constitution: 1874.                                                         
  Branches: Executive--president (head of state), prime minister (head of     
  government), cabinet (12 ministers). Legislative--63-member unicameral      
  parliament (Althingi). Judicial--Supreme Court, district courts, special    
  courts.                                                                     
  Subdivisions: 26 administrative districts and 79 municipalities.            
  Major political parties: Independence (IP), Progressive (PP), Social        
  Democratic Alliance (SDA), Left-Green Party (LGP), Liberal Party (LP).      
  Suffrage: Universal 18 years and above.                                     
  National holiday: June 17, anniversary of the establishment of the republic.
                                                                       
  Economy                                                                     
  GDP (2006): $18.4 billion.                                                  
  GDP growth rate (2005): 5.8%; (2006): 2.6%.                                 
  Per capita GDP (2006): $53,766.                                             
  Inflation rate (2007): 4%.                                                  
  Budget (2007): $6 billion.                                                  
  Annual budget surplus (2006): 1.4% of GDP.                                  
  Net public debt (2007): 17% of GDP.                                         
  Foreign aid as part of 2005 budget: 0.18% of GDP.                           
  Natural resources: Marine products, hydroelectric and geothermal power.     
  Agriculture: Products--potatoes, tomatoes, cucumbers, turnips, livestock.   
  Industry: Types--aluminum smelting, fishing and fish processing technology, 
  ferro-silicon alloy production, hydro and geothermal power, tourism,        
  information technology.                                                     
  Trade: Exports of goods (2006)--$3.9 billion: marine products 51.2%,        
  industrial products 38.3%, agriculture 1.8%, and miscellaneous 8.7%.        
  Partners--EU 74.8% (U.K. 18%, Germany 17%, Netherlands 11%, Spain 6%, Denmark
  5%); U.S. 10.8% ($421 million); Japan 2.1%. Imports (2006)--$6.9 billion:   
  industrial supplies 27%; capital goods, parts, accessories 23%; consumer    
  goods 20%; transport equipment 21.1%; food and beverages 9%; fuels and      
  lubricants 8%. Partners--EU 64.7% (Germany 13%, Denmark 9%, U.K. 8%, Sweden 
  7%, Netherlands 7%); U.S. 12.8% ($208 million); EFTA 9%; Japan 4.1%.        
                                                                       
  GEOGRAPHY                                                                   
  Iceland is a volcanic island in the North Atlantic Ocean east of Greenland  
  and immediately south of the Arctic Circle. It lies about 4,200 kilometers  
  (2,600 mi.) from New York and 830 kilometers (520 mi.) from Scotland. About 
  79% of Iceland's land area, which is of recent volcanic origin, consists of 
  glaciers, lakes, a mountainous lava desert (highest elevation 2,000         
  meters--6,590 ft.--above sea level), and other wasteland. About 28% of the  
  land is used for grazing, and 1% is cultivated. The inhabited areas are on  
  the coast, particularly in the southwest where about 60% of the population  
  lives. Because of the Gulf Stream's moderating influence, the climate is    
  characterized by damp, cool summers and relatively mild but windy winters. In
  Reykjavík, the average temperature is 11°C (52°F) in July and -1°C (30°F) in
  January.                                                                    
                                                                       
  PEOPLE                                                                      
  Most Icelanders are descendants of Norwegian settlers and Celts from the    
  British Isles, and the population is remarkably homogeneous. According to   
  Icelandic Government statistics, 93% of the nation's inhabitants live in    
  urban areas (localities with populations greater than 200) and about 60% live
  in the Reykjavík metropolitan area. Of the Nordic languages, the Icelandic  
  language is closest to the Old Norse language and has remained relatively   
  unchanged since the 12th century. About 91% of the population belongs to the
  state church, the Evangelical Lutheran Church, or other Lutheran Churches.  
  However, Iceland has complete religious liberty, and about 20 other religious
  congregations are present.                                                  
                                                                       
  Most Icelandic surnames are based on patronymy, or the adoption of the      
  father's first given name. For example, Magnus and Anna, children of a man  
  named Pétur, would hold the surname Pétursson and Pétursdóttir, respectively.
  Magnus' children, in turn, would inherit the surname Magnusson, while Anna's
  children would claim their father's first given name as their surname. Women
  normally maintain their original surnames after marriage. This system of    
  surnames is required by law, except for the descendants of those who had    
  acquired family names before 1913. Most Icelanders, while reserved by nature,
  rarely call each other by their surnames, and even phone directories are    
  based on first names. Because of its small size and relative homogeneity,   
  Iceland holds all the characteristics of a very close-knit society.         
                                                                       
  Cultural Achievements                                                       
  The Sagas, almost all written between 1180 and 1300 A.D., remain Iceland's  
  best-known literary accomplishment, and they have no surviving counterpart  
  anywhere in the Nordic world. Based on Norwegian and Icelandic histories and
  genealogies, the Sagas present views of Nordic life and times up to 1100 A.D.
  The Saga writers sought to record their heroes' great achievements and to   
  glorify the virtues of courage, pride, and honor, focusing in the later Sagas
  on early Icelandic settlers. The best-known Icelandic writer of the 20th    
  century is the 1955 Nobel Prize winner Halldór Kiljan Laxness. The literacy 
  rate is 99.9%, and literature and poetry are a legendary passion with the   
  population. Per capita publication of books and magazines is the highest in 
  the world.                                                                  
                                                                       
  Unlike its literature, Iceland's fine arts did not flourish until the 19th  
  century because the population was small and scattered. Iceland's most famous
  painters are Ásgrímur Jónsson, Jón Stefánsson, and Jóhannes Kjarval, all of 
  whom worked during the first half of the 20th century. The best-known modern
  sculptor, Ásmundur Sveinsson (1893-1982), drew his inspiration from Icelandic
  folklore and the Sagas for many of his works. Today, Kristján Jóhannsson is 
  Iceland's most famous opera singer, while pop singer Björk and progressive  
  rock band Sigur Rós are well known internationally.                         
                                                                       
  HISTORY                                                                     
  Iceland was settled in the late 9th and early 10th centuries, principally by
  people of Norse origin. In 930 A.D., the ruling chiefs established a        
  republican constitution and an assembly called the Althingi (Alþingi) the   
  oldest parliament in the world. Iceland remained independent until 1262, when
  it entered into a treaty establishing a union with the Norwegian monarchy.  
  Iceland passed to Denmark in the late 14th century when Norway and Denmark  
  were united under the Danish crown.                                         
                                                                       
  In the early 19th century, national consciousness revived in Iceland. The   
  Althingi had been abolished in 1800 but was reestablished in 1843 as a      
  consultative assembly. In 1874, Denmark granted Iceland limited home rule,  
  which was expanded in scope in 1904. The constitution, written in 1874, was 
  revised in 1903, and a minister for Icelandic affairs, residing in Reykjavík,
  was made responsible to the Althingi. The Act of Union, a 1918 agreement with
  Denmark, recognized Iceland as a fully sovereign state united with Denmark  
  under a common king. Iceland established its own flag, but Denmark continued
  to represent Icelandic foreign affairs and defense interests.               
                                                                       
  German occupation of Denmark in 1940 severed communications between Iceland 
  and Denmark. Consequently, Iceland moved immediately to assume control over 
  its own territorial waters and foreign affairs. In May 1940, British military
  forces occupied Iceland. In July 1941, responsibility for Iceland's defense 
  passed to the United States. Following a plebiscite, Iceland formally became
  an independent republic on June 17, 1944. In October 1946, the Icelandic and
  U.S. Governments agreed to terminate U.S. responsibility for the defense of 
  Iceland, but the United States retained certain rights at Keflavík. Iceland 
  became a charter member of the North Atlantic Treaty Organization (NATO) in 
  1949. After the outbreak of hostilities in Korea in 1950, and pursuant to the
  request of NATO military authorities, the United States and Iceland agreed  
  that the United States should again make arrangements for Iceland's defense.
  A bilateral defense agreement signed on May 5, 1951, remains in force, even 
  though the U.S. military forces are no longer permanently stationed in      
  Iceland. Iceland is the only NATO country with no standing military of its  
  own.                                                                        
                                                                       
  GOVERNMENT                                                                  
  The president, elected to a 4-year term, has limited powers. When Iceland   
  became a republic in 1944, the post of president was created to fill the void
  left by the Danish king. Although the president is popularly elected and has
  limited veto powers (he can force a public referendum on a proposed law by  
  refusing to sign it--a power that has only once been exercised), the        
  expectation is that the president should play the same limited role as a    
  monarch in a traditional parliamentary system.                              
                                                                       
  The prime minister and cabinet exercise most executive functions. The       
  parliament is composed of 63 members, elected every 4 years unless it is    
  dissolved sooner. Suffrage for presidential and parliamentary elections is  
  universal for those 18 and older, and members of the parliament are elected 
  on the basis of parties' proportional representation in six constituencies. 
  The judiciary consists of the Supreme Court, district courts, and various   
  special courts. The constitution protects the judiciary from infringement by
  the other two branches.                                                     
                                                                       
  Principal Government Officials                                              
  President--Ólafur Ragnar Grímsson                                           
  Prime Minister--Geir H. Haarde                                              
  Foreign Minister--Ingibjörg Sólrún Gísladóttir                              
  Minister of Finance--Árni M. Mathiesen                                      
  Minister of Justice and Ecclesiastical Affairs--Björn Bjarnason             
  Minister of Agriculture and Fisheries--Einar Kristinn Guðfinnson            
  Minister of Communications--Kristján L. Möller                              
  Minister of Industry and Nordic Cooperation--Össur Skarphéðinsson           
  Minister for the Environment--Þórunn Sveinbjarnardóttir                     
  Minister of Commerce--Björgvin G. Sigurðsson                                
  Minister of Health--Guðlaugur Þór Þórðarson                                 
  Minister of Social Affairs--Jóhanna Sigurðardóttir                          
  Minister of Education, Science and Culture--Þorgerður Katrín Gunnarsdóttir  
  Speaker of Althingi--Sturla Böðvarsson                                      
  Ambassador to the U.S.--Albert Jónsson                                      
  Ambassador to the UN--Hjálmar W. Hannesson                                  
  Ambassador to NATO--Gunnar Gunnarsson                                       
  Ambassador to the EU-- Stefán Haukur Jóhannesson                            
                                                                       
  transliteration key:                                                        
  Þ is "th" ð is "d"                                                          
                                                                       
  Iceland maintains an embassy in the United States at 1156 - 15th Street, NW,
  Suite 1200, Washington, DC 20005 [tel. (202) 265-6653], and a consulate     
  general at 800 Third Ave, 36th floor, New York, NY 10022 [tel. (212)        
  593-2700]. Iceland also has 25 honorary consulates in major U.S. cities.    
                                                                       
  POLITICAL CONDITIONS                                                        
  Iceland's current government coalition was formed after the May 2007        
  parliamentary elections by the conservative Independence Party (IP) and the 
  center-left Social Democratic Alliance. The two parties hold a large majority
  in parliament, with 43 out of 63 seats.                                     
                                                                       
  The current government replaced a coalition of the Independence Party and the
  Progressive Party (PP) that had been in power since 1995. Longtime IP leader
  Davíð Oddsson was Prime Minister 1991-2004, making him the longest-serving  
  prime minister in Europe (from 1991 to 1995, the IP was in coalition with the
  Social Democratic Party). PP chairman and former Foreign Minister Halldór   
  Ásgrímsson took over as Prime Minister on September 15, 2004, as part of a  
  post-election deal with the Independence Party, and Oddsson became Foreign  
  Minister. Oddsson retired from his ministerial position September 27, 2005, 
  with former Finance Minister Geir Haarde becoming Foreign Minister. Oddsson 
  also announced his intention shortly to step down as IP chairman, with Haarde
  elected to the post at a party national conference in October. In early June
  2006 Ásgrímsson announced his withdrawal from politics as Prime Minister,   
  parliamentarian, and chairman of the Progressive Party. Haarde became the   
  third Prime Minister during the current electoral term on June 15, 2006, and
  Valgerður Sverrisdóttir (Progressive Party) took over as Foreign Minister. In
  May 2007 the Independence Party and the Social Democratic Alliance formed a 
  new government after an abysmal showing by the Progressive Party. Geir Haarde
  continued as Prime Minister, and the chairman of the Social Democratic      
  Alliance, Ingibjörg Sólrún Gísladóttir, took over the reins at the Ministry 
  for Foreign Affairs.                                                        
                                                                       
  The centrist agrarian Progressive Party has been a party to government for  
  over 30 years in the past 4 decades. Its support dropped from 23% in the 1995
  parliamentary election to 12% in 2007. The party has dealt with internal    
  instability in the past few years, and power struggles have lead to frequent
  change in the party's leadership. Chairman Jón Sigurðsson stepped down after
  the 2007 elections and was replaced by the deputy chairman, Guðni Águstsson.
                                                                       
  Three left-wing parties--the Social Democratic Party, the People's Alliance,
  and the Women's List--formed an electoral coalition prior to the 1999       
  parliamentary election in the hope of mounting a credible challenge to the  
  long-dominant Independence Party. But the dream of creating a united left   
  coalition failed when disaffected leftists formed a new splinter party called
  the Left Green Movement, led by former deputy People's Alliance leader      
  Steingrímur Sigfusson. With this defection, the left coalition won a        
  disappointing 27% of the vote (17 seats) in the 1999 election, four         
  percentage points below what the three parties had won running separately in
  1995. Their 31% (20 seats) showing in 2003 recaptured this ground but did not
  suffice to topple the government. The Left Greens won a respectable 9% of the
  vote (5 seats) in 2003, but in the 2007 election they improved significantly,
  with 14% of the total vote (9 seats). Another new faction, the Liberal Party,
  won just over 7% (4 seats) in 2003 based on its strong opposition to the    
  current fishing management system, and clung to roughly 6% in 2007.         
                                                                       
  Despite the poor electoral showing in 1999, the three left-wing parties     
  decided to merge formally in 2000, creating a new party, the Social         
  Democratic Alliance, led by Ingibjörg Sólrún Gísladóttir. The party has found
  it difficult to reconcile the widely varying foreign policy views of its    
  members, which range from strong support for NATO membership to pacifism and
  a desire for neutrality.                                                    
                                                                       
  Iceland's current President is Ólafur Ragnar Grímsson, a former political   
  science professor who led the far-left People's Alliance in 1987-95 and     
  served as Finance Minister in 1988-91. Although Grímsson won office with only
  a 41% plurality in 1996, he was not challenged for re-election in 2000. This
  follows a well-established tradition of giving deference to sitting         
  presidents. He was re-elected again on June 26, 2004. Once in office, a     
  president can generally count on serving as many terms as he or she likes,  
  assuming good behavior. Reflecting the belief that the president is "above  
  politics," presidential candidates run for election as individuals--since   
  1952, political parties have played no role in nominating or endorsing      
  candidates. President Grímsson has occasionally drawn criticism that he     
  breaches the bounds of presidential etiquette by being too outspoken on     
  sensitive political issues.                                                 
                                                                       
  ECONOMY                                                                     
  Marine products account for the majority of Iceland's exports of goods. Other
  important exports include aluminum, ferro-silicon alloys, equipment and     
  electronic machinery for fishing and fish processing, and pharmaceuticals.  
  Information technology and life sciences and related services are important 
  growth areas. The vast majority of Iceland's exports go to the European Union
  (EU) and the European Free Trade Association (EFTA) countries, followed by  
  the United States and Japan. The U.S. is by far the largest foreign investor
  in Iceland, and the country's largest supplier of imported services (e.g.,  
  financial and franchise services, movies/TV programs/music, tourism).       
  Iceland's relatively liberal trading policy was strengthened by accession to
  the European Economic Area in 1994 and by the Uruguay Round agreement, which
  also brought significantly improved market access for Iceland's exports,    
  particularly seafood products. However, the agricultural sector remains     
  heavily subsidized and protected.                                           
  In recent decades, Iceland's economy has been prone to inflation due to     
  periods of rapid growth and its dependence on just a few key export sectors 
  (i.e., fish, and increasingly tourism and aluminum production), which can   
  fluctuate significantly from one year to the next. The 1970s oil shocks hit 
  Iceland hard. Inflation rose to 43% in 1974 and 59% in 1980, falling to 15% 
  in 1987 but rising to 30% in 1988. Since 1990, due to economic reforms and  
  deregulation, inflation has dramatically fallen, averaging around 4% in the 
  1990s. Due to several years of strong economic growth, Iceland experienced  
  the most positive economic period in its history during that decade. However,
  as with many advanced countries, Iceland's economy experienced a mild       
  recession during 2002 due to global conditions. That recession was          
  short-lived, and healthy growth of 3% was registered during 2003. In 2005 the
  economy boomed, growing 5.8%, and inflation was close to the Central bank's 
  upper limit (4%) at 3.95%, while unemployment decreased to about 3.2%. The  
  economy suffered a setback in spring 2006 when credit rating agencies and   
  other international financial firms released a number of reports raising    
  questions about the state of the Icelandic economy and the activities and   
  stability of Iceland's major banks. These reports were widely covered in the
  international financial press, causing a marked drop in the value of the    
  Icelandic krona and of shares listed on the Icelandic stock exchange. Since 
  then the situation has calmed down, but there is no question that certain   
  imbalances have emerged in the Icelandic economy, including a high current  
  account deficit, high inflation and high private sector debt levels. It     
  remains an open question whether these imbalances render Iceland particularly
  vulnerable to an economic crisis. Foreign confidence in the Icelandic economy
  is important to maintain the country's skillful use of foreign capital.     
  Icelandic businessmen have become well known for risk taking, decisiveness, 
  and swiftness in their investments. Wealthy Icelanders have successfully    
  invested overseas, especially in the retail and real estate markets in      
  Denmark and U.K. and telecom, pharmaceutical, banking, and financial sectors
  in Eastern Europe. This recent success has for the first time created a     
  "super-rich" elite in Icelandic society.                                    
                                                                       
  Iceland has few proven mineral resources. Abundant hydroelectric and        
  geothermal power sources allow over 90% of the population to enjoy          
  electricity and heating from these natural resources. The Kárahnjúkar       
  hydroelectric project is the largest single station, with capacity of 690   
  megawatts (mw). The other major hydroelectric stations are at Búrfell (270  
  mw), Hrauneyjarfoss (210 mw), Sigalda (150 mw) and Blanda (150 mw). Iceland 
  is exploring the feasibility of exporting hydroelectric energy via submarine
  cable to mainland Europe and also actively seeks to expand its              
  power-intensive industries, particularly aluminum smelting plants.          
  Iceland-based Nordural Aluminum is a wholly owned investment by Century     
  Aluminum of Monterey, California. The plant employs more than 450 people and
  recently expanded to a production capacity of 220,000 tons per year. A new  
  smelter owned by Alcoa, another U.S.-owned aluminum company, began operations
  in June 2007. The smelter will have a production capacity of 346,000 tons per
  year when fully operational. The Kárahnjúkar hydroelectric power plant,     
  completed in early 2007, was built in connection with Alcoa's smelter. A    
  total of over $2 billion has been invested in the power plant and smelter,  
  the largest economic project in Icelandic history.                          
                                                                       
  Iceland has no railroads. Organized road building began about 1900 and has  
  greatly expanded in the past decade. The current national road system       
  connecting most of the population centers is largely in the coastal areas and
  consists of about 13,000 kilometers (8,125 mi.) of roads with about 4,330   
  kilometers (2,706 mi.) paved. Regular air and sea service connects Reykjavík
  with the other main population centers. The national airline, Icelandair,   
  flies from Iceland to Europe and North America, and is one of the country's 
  largest employers. Iceland became a full member of the European Free Trade  
  Association in 1970 and entered into a free trade agreement with the European
  Community in 1973. Under the European Economic Area agreement, which took   
  effect January 1, 1994, there is basically free cross-border movement of    
  capital, labor, goods, and services between Iceland, Norway, and the EU     
  countries.                                                                  
                                                                       
  DEFENSE                                                                     
  The U.S. and Iceland signed a bilateral agreement in 1951 stipulating that  
  the U.S. would make arrangements for Iceland's defense on behalf of NATO and
  providing for basing rights for U.S. forces in Iceland. In March 2006 the   
  U.S. announced it would continue to provide for Iceland's defense but without
  permanently basing forces in the country; Naval Air Station Keflavik closed 
  in September 2006 after 55 years. The Government of Iceland expressed       
  disappointment, and even opposition politicians opposed to the U.S. military
  presence criticized the manner of the closing, but bilateral discussions    
  ensued to explore new ways of ensuring the country's security, with an      
  emphasis on a "visible defense." Negotiations concluded with a Technical    
  Agreement on base closure issues (e.g., facilities return, environmental    
  cleanup, residual value) signed on September 29, 2006, and a "Joint         
  Understanding" on future bilateral security cooperation (focusing on        
  defending Iceland and the North Atlantic region against emerging threats such
  as terrorism and trafficking) signed by the Secretary of State, Prime       
  Minister Haarde and Foreign Minister Sverrisdóttir in Washington on October 
  11, 2006. The U.S. also cooperated with local officials to mitigate the     
  impact of job losses at the Air Station, notably by encouraging U.S.        
  investment in industry and tourism development in the Keflavík area. The    
  Government of Iceland announced in spring 2007 that a large portion of the  
  former base site would be converted into the university-level "Atlantic     
  Center of Excellence" with operations scheduled to begin in fall 2007.      
                                                                       
  Cooperative activities in the context of the new agreements began almost    
  immediately, with the arrival of the amphibious ship USS Wasp in Reykjavík on
  October 12, 2006 (the first U.S. Navy port visit since 2002) to demonstrate 
  the Navy's rapid reaction capability and to support counterterrorism training
  by units of Iceland's Coast Guard and police. In November 2006 a U.S. Navy  
  P-3 patrol aircraft arrived at Keflavík for joint search and rescue, disaster
  surveillance, and maritime interdiction training. Further joint endeavors,  
  including a U.S.-led air defense exercise, are slated for the summer of 2007.
                                                                       
  The Government of Iceland contributes financially to NATO's international   
  overhead costs and recently has taken a more active role in NATO            
  deliberations, planning, and peacekeeping. Iceland hosted the NATO Foreign  
  Ministers' Meeting in Reykjavík in June 1987 and again in May 2002. Iceland 
  hosted the NATO Military Committee in April 2007 and will host the NATO     
  Parliamentary Assembly in October 2007.                                     
                                                                       
  FOREIGN RELATIONS                                                           
  Iceland maintains diplomatic and commercial relations with practically all  
  nations, but its ties with other Nordic states, with the U.S., and with the 
  other NATO member states are particularly close. Icelanders remain especially
  proud of the role Iceland played in hosting the historic 1986 summit in     
  Reykjavík between President Reagan and Soviet leader Gorbachev, which set the
  stage for the end of the Cold War.                                          
                                                                       
  Iceland has greatly increased its international profile since the early     
  1990s. Since the mid-1990s, Iceland has opened a number of missions overseas
  for a total of 22, including an embassy in Beijing, giving Iceland a        
  diplomatic presence in all five permanent member countries of the UN Security
  Council. Not coincidentally, it has announced its candidacy to serve on the 
  UN Security Council in 2009-2010. In the past few years, Iceland has also   
  established missions to the Council of Europe in Strasbourg and to the      
  Organization for Security and Cooperation in Vienna. In 1998, it bolstered  
  its delegation to NATO, assigning a permanent representative to the military
  committee for the first time ever.                                          
                                                                       
  Notwithstanding its status as an unarmed nation, Iceland has been eager to do
  its part to contribute to the maintenance of international peace and        
  security. One of the niches it is helping to fill is in civilian peacekeeping
  and crisis management. It took a significant step forward in this area in   
  2001 by launching its Icelandic Crisis Response Unit (ICRU). In setting up  
  the ICRU, the Ministry for Foreign Affairs established a roster of over 100 
  experts in various occupations (police officers, nurses, doctors, lawyers,  
  engineers, journalists, etc.) who will be specially trained and prepared to 
  deploy to trouble spots abroad on short notice.                             
                                                                       
  Peacekeeping has been a permanent item in the Icelandic state budget since  
  1994, and Iceland has been an active member of the UN Peacekeeping Committee
  since 1997. With the formal establishment of the ICRU, the government decided
  to increase the number of deployed peacekeepers to 50 by 2006. The key      
  emerging niche capability of the ICRU is airport administration following the
  successful management of the airport in Pristina, Kosovo, in 2003 and of the
  airport in Kabul, Afghanistan, in 2004-2005.                                
                                                                       
  Icelanders have a strong emotional bond with the Baltic states, and Iceland 
  prides itself on being the first country to have recognized these countries'
  claim for independence in 1991.                                             
                                                                       
  Membership in International Organizations                                   
  Iceland is a member of the following organizations: Arctic Council, Barents 
  Euro-Arctic Council; Council of Baltic Sea States; Council of Europe;       
  European Economic Area; European Free Trade Organization; EFTA Court; EFTA  
  Surveillance Authority; North Atlantic Treaty Organization; Organization for
  Security and Cooperation in Europe; Organization for Economic Cooperation and
  Development; International Criminal Police Organization; International      
  Council for the Exploration of the Sea; International Hydrographic          
  Organization; International Maritime Satellite Organization; International  
  Union for the Publication of Custom Tariffs; Nordic Council; North-East     
  Atlantic Fisheries Commission; North Atlantic Salmon Conservation           
  Organization; the International Whaling Commission; and the North Atlantic  
  Marine Mammal Commission.                                                   
                                                                       
  It also is a member of the United Nations and most of its related           
  organizations, specialized agencies, and commissions, including the         
  International Monetary Fund, World Trade Organization, World Tourism        
  Organization, Food and Agricultural Organization, International Atomic Energy
  Agency, International Civil Aviation Organization, International Fund for   
  Agricultural Development; Industrial Development Organization; International
  Labor Organization, International Maritime Organization, International      
  Telecommunications Union, UN Educational, Scientific, and Cultural          
  Organization, Universal Postal Union, World Health Organization, and World  
  Meteorological Organization; World Intellectual Property Organization;      
  International Bank for Reconstruction and Development; International        
  Development Association; International Finance Corporation Multilateral     
  Investment Guarantee Agency and International Center for Settlement of      
  Investment Disputes; UN Conference on Disarmament; Economic Commission for  
  Europe; UN High Commissioner for Refugees; Office for the High Commissioner 
  for Human Rights; Commission of Human Rights; UN Conference on Trade and    
  Development.                                                                
                                                                       
  U.S.-ICELANDIC RELATIONS                                                    
  U.S. policy aims to maintain close, cooperative relations with Iceland, both
  as a NATO ally and as a friend interested in the shared objectives of       
  enhancing world peace; respect for human rights; economic development; arms 
  control; and law enforcement cooperation, including the fight against       
  terrorism, narcotics, and human trafficking. Moreover, the United States    
  endeavors to strengthen bilateral economic and trade relations.             
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Carol van Voorst                                                
  Deputy Chief of Mission--Neil Klopfenstein                                  
  Political Officer--Brad Evans                                               
  Economic/Commercial Officer--Fiona Evans                                    
  Management Officer--Richard Johnson                                         
  Information Management Officer (acting)--Steve Ackerman                     
  Public Affairs Officer--Sally Hodgson                                       
  Consular Officer--Allen Kepchar                                             
  Regional Security Officer--Peter A. Dinoia                                  
  The U.S. Embassy in Iceland is located at Laufasvegur 21, Reykjavík [tel.   
  (354) 562-9100]. The Embassy's web site is http://reykjavik.usembassy.gov/  
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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