fishing industry. The perception that EU membership will have an adverse effect on Iceland's agricultural sector. Iceland's strong ties with the United States, which included significant economic, diplomatic and military assistance, decreased Iceland's dependence on European countries. The victories in the Cod Wars may have strengthened Icelandic nationalism and boosted the perception that Iceland can succeed through unilateral or bilateral means rather than compromise in multilateral frameworks. The Icelandic electoral system favors rural areas, which are more eurosceptic. The tendency for Icelandic elites to pursue education in the United States or eurosceptic European countries (such as the United Kingdom or the Nordic countries), and to cooperate more closely with political elites from those countries. Icelandic nationalism and the legacy of Iceland's past as a colonial entity. The impact of the Icesave dispute with the Netherlands and the UK. Trade relations Economic relations between Iceland and the European Union are primarily governed by two agreements: a bilateral free trade agreement signed in 1972, and the agreement on the EEA in 1994. The EEA was established to give Iceland, among other European countries outside the EU, access to the EU market. Iceland's access to the EU market in respect of agriculture and fisheries is dealt with by separate bilateral agreements. Iceland is legally bound to implement into its own law all EU directives applicable to the free movement of goods, persons, services and capital. This is complemented by regular meetings between EU and Icelandic officials, including a twice-yearly meeting of EEA foreign ministers. 78% of Iceland's exports went to the EU and 52% of Iceland's imports came from it, making the EU Iceland's most important trading partner, followed by Norway. Traditionally, Iceland's economy has focused on fisheries and renewable energy, but it has been diversifying into aluminium production, pharmaceuticals, information technologies, tourism and the financial sector. Iceland is still a large exporter of fish (the third largest exporter to the EU after Norway and China) with a world trade surplus of €1.1 billion in 2008. In fisheries, the EU had a 2009 trade deficit of €879 million. Until Iceland's 2009 financial crisis, its commercial services sector had been growing rapidly, accounting for almost 35% of total exports (goods and services combined). EU membership Iceland applied to join the European Union on 16 July 2009 and formal negotiations began on 27 July 2010. However, on 13 September 2013 the Government of Iceland dissolved