Iceland is closely linked with the EU through membership in the Agreement on the European Economic Area (EEA), which brings together all the 27 EU Member States and three of the European Free Trade Association (EFTA) countries, Iceland, Norway and Liechtenstein in the Single Market. Much of the cooperation and political dialogue between the EU and Iceland take place in special EEA institutions, including the EEA Council, Joint Committee, Parliamentary Committee, and Consultative Committee. Iceland is furthermore a member of the Schengen Agreement, which gives its citizens the right to travel passport-free within the area, and a signatory of the Dublin Regulation on asylum policy.
Iceland shares the EU’s support for the multilateral system and often aligns itself with the EU on foreign policy issues.
Iceland is a Member of the Arctic Council. It supports the EU in obtaining formal observer status on the Arctic Council. The EU and Iceland also work together in the framework of the Northern Dimension and the Barents Euro-Arctic Council.
Iceland applied for EU membership in July 2009 and accession negotiations commenced a year later. Following a change of leadership, Iceland's government notified in March 2015 that Iceland should not be regarded as a candidate country for EU membership.