Iceland: A small state in search of its niche

Increased instability in the North Atlantic region has raised Iceland's strategic importance again, which can be detected in its foreign policy and the current emphasis on the increased importance of the Arctic region. This article explores how Iceland's foreign policy has evolved from the time of the Cold War until the present day with a specific focus on its relations with its Nordic neighbors. An effort is made to describe Iceland's current foreign policy and how Iceland has tried to create its niche in the international arena, using its smallness as a strength, rather than a weakness. The main elements presently apparent in Iceland's foreign policy include skepticism towards EU membership although committed to participation in the EEA and Schengen, increased interest in Nordic cooperation especially relating to security and defense, a growing interest in the Arctic seen as fostering new opportunities for Iceland, and finally, a continued commitment towards NATO and the bilateral defense agreement with the US.