High Quality Content by WIKIPEDIA articles! Iceland applied to join the European Union on 16 July 2009. Negotiations formally began 27 July 2010 and, despite Iceland already being heavily integrated into the EU market, will face contentious issues on fisheries which could potentially derail an agreement. After an agreement is concluded, the accession treaty must be ratified by every EU state and be subject to a national referendum in Iceland. Prior to application, Iceland was part of the EU`s internal market and the Schengen Area.