Iceland is in EEA. EEA is already EU-lite, where they have to comply with plenty of EU regulations, don't get a vote on those regulations, but get some exemptions (such as their fishing thing).
Other two countries in EEA are Norway and Liechtenstein.
I'm not saying that Iceland should join the EU. Nor that it shouldn't. I don't live in Iceland.
I was explaining to the commenter above me that Iceland already has to comply to EU regulations, because he seemed unaware of that.
Unsurprisingly, every thread on HN that mention EU seems to attract all sorts of people that have absolutely no idea of what the hell they are talking about.
Other two countries in EEA are Norway and Liechtenstein.