Why would we (as an EU member) want Iceland to compromise on such a vital issue, though? I understand that it's simpler to have common regulations among all members, but when theirs works, why mess with it? It sounds unreasonable.
It could potentially open doors for other EU states to ask for exempts.
The goal of the EU is to form a single economic area. Irish an I elandic fishers should be under same rules when fishing the same waters.
EU often is a mechanism to find a compromise (which makes the regulations so convoluted and bureaucratic ...), but too many special clauses to make a country happy means you got a similar debate on next subject.