HomeCountries & Areas…Iceland hide Iceland Subscribe View Fact Sheet Embassies & Consulates Bureau of European and Eurasian Affairs International Travel Information What you need to know before you go: visas, Embassy & Consulate locations, vaccinations, etc. International Travel Information: Learn More Current Travel Advisories Level 1: Exercise Normal Precautions Learn More U.S. Relationship These are excerpts from the U.S. Relations With Iceland U.S.-Iceland Relations U.S. Assistance to Iceland Bilateral Economic Relations U.S.-Iceland Relations The United States was the first country to recognize Iceland’s independence in 1944 following Danish rule. Iceland is a founding member of the North Atlantic Treaty Organization (NATO) but has no standing military of its own. The United States and Iceland signed a bilateral defense agreement in 1951; it remains in force, although U.S. military forces are no longer permanently The United States was the first country to recognize Iceland’s independence in 1944 following Danish rule. Iceland is a founding member of the North Atlantic Treaty Organization (NATO) but has no standing military of its own. The United States and Iceland signed a bilateral defense agreement in 1951; it remains in force, although U.S. military forces are no longer permanently stationed in Iceland. Collapse U.S.-Iceland Relations Read more about U.S.-Iceland Relations U.S. Assistance to Iceland The 1951 bilateral defense agreement stipulated that the U.S. would make arrangements for Iceland’s defense on behalf of NATO and provided for basing rights for U.S. forces in Iceland. In 2006 the U.S. announced it would continue to provide for Iceland’s defense but without permanently basing forces in the country. That year, Naval Air Station Keflavik closed, and the two The 1951 bilateral defense agreement stipulated that the U.S. would make arrangements for Iceland’s defense on behalf of NATO and provided for basing rights for U.S. forces in Iceland. In 2006 the U.S. announced it would continue to provide for Iceland’s defense but without permanently basing forces in the country. That year, Naval Air Station Keflavik closed, and the two countries signed a technical agreement on base closure issues (e.g., facilities return, environmental cleanup, residual value) 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. The United States also worked 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 Keflavik area. A new Joint Declaration between the United States and Iceland was signed in 2016, supplementing the 2006 declaration. Cooperative activities in the context of the agreements have included joint search and rescue, disaster surveillance, and maritime interdiction training with U.S. Navy and U.S. Coast Guard units; and U.S. deployments to support the NATO air surveillance mission in Iceland. Collapse U.S. Assistance to Iceland Read more about U.S. Assistance to Iceland Bilateral Economic Relations The United States seeks to strengthen bilateral economic and trade relations. The United States is Iceland’s single largest trading partner, although most of Iceland’s exports go to the European Union (EU) and the European Free Trade Association (EFTA) countries. The U.S. is one of the largest foreign investors in Iceland, primarily in the aluminum sector. The United States and Iceland The United States seeks to strengthen bilateral economic and trade relations. The United States is Iceland’s single largest trading partner, although most of Iceland’s exports go to the European Union (EU) and the European Free Trade Association (EFTA) countries. The U.S. is one of the largest foreign investors in Iceland, primarily in the aluminum sector. The United States and Iceland signed a Trade and Investment Framework Agreement in 2009. Collapse Bilateral Economic Relations Read more about Bilateral Economic Relations Integrated Country Strategies The Integrated Country Strategy is the four-year strategy articulating U.S. priorities in a given country. The Chief of Mission leads the strategy. View Integrated Country Strategies Investment Climate Statements The Investment Climate Statements analyze a variety of economies that are or could be markets for U.S. businesses and provide information on the business climates. View Investment Climate Statements Discover More 2022 Country Reports on Human Rights Practices 2022 Report on International Religious Freedom 2023 Trafficking in Persons Report View all Department Reports and Publications Highlights February 22, 2024 Reykjavik, Iceland: International School of Iceland: 2024 Special Needs Profile November 13, 2023 Ambassador-at-Large for Global Women’s Issues Rao Gupta Travels to Iceland November 3, 2023 Reykjavik, Iceland: International School of Iceland: 2023-2024 Fact Sheet August 25, 2023 Expanding the Global Equality Fund and Protecting Human Rights with New International Partners June 17, 2023 Iceland National Day VIEW ALL NEWS Tags Bureau of European and Eurasian Affairs Iceland