Greenland in Focus: Sovereignty & International Agreements
Greenland occupies a unique position in international affairs, balancing its extensive self-rule with its constitutional ties to Denmark. As the world’s largest island, situated in the Arctic with significant geopolitical and economic importance, Greenland's sovereignty and international relations are shaped by historical agreements, evolving governance structures, and strategic alliances. This article explores Greenland’s legal framework, sovereignty considerations, and the international agreements that define its role.
The Danish constitution governs Denmark, the Faroe Islands, and Greenland, legally binding them together in a union under the Danish Crown. This union includes a shared currency (DKK), defense and foreign policy, citizenship (passport), and the national church.
Greenland has a population of approximately 57,000 inhabitants and covers an area of 2,166,086 km², mostly in the northern Arctic region. Around 79% of Greenland is covered by ice.
Under the Self-Government Act, Greenland has a self-rule government (Naalakkersuisut), its own parliament (Inatsisartut), and local elections in which only Danish citizens with permanent residence in Greenland may vote. Additionally, two members of the Danish Parliament in Copenhagen are elected in Greenland.
A key provision of the Self-Government Act is that any decision regarding Greenland’s sovereignty, including whether Greenland initiates the process of becoming independent from Denmark (the so-called “Article 21 procedure”), must be made by the Greenlandic Parliament and confirmed by a referendum in Greenland. The same applies to any decision to join another country, such as the United States.
Under the Self-Government Act, Greenland enjoys autonomy in various areas, including trade (Greenland is not a member of the EU), labor and employment regulations, and the exploration of natural resources. Greenland also has the opportunity, at its own discretion, to take over more governmental responsibilities, a process that was strengthened in 2009 and is expected to continue.
Denmark provides the majority of Greenland’s total income through annual grants exceeding DKK 4 billion (€550 million). Denmark also finances and administers Greenland’s healthcare system, as well as infrastructure, including roads, the legal system, education, and police services. Additionally, Denmark funds administration and IT services, which account for an equivalent amount.
Greenland is covered by NATO and UN treaties through Denmark’s membership. Based on these agreements and a treaty between Denmark and the United States (the Washington Treaty), a large U.S. military base, Pituffik Space Base (formerly Thule Air Base), has been operating in northwestern Greenland since the 1940s. NATO and the U.S. already play a significant role in Greenland’s security due to its strategic position.
Decision-Making in Foreign Relations
Foreign policy decisions related to Greenland remain under Denmark’s jurisdiction, as established by the Danish constitution. However, over time, a collaborative approach has developed, allowing Greenland to take a more active role in shaping foreign policy related to its interests. This involvement is expected to increase in the future.
Legal Precedents Regarding Foreign Interest in Greenland’s Territory
In 1994, the International Court of Justice (ICJ) ruled on a case between Denmark and Norway concerning the maritime boundary between Denmark (Greenland territory) and Norway near Jan Mayen. The ICJ ruled in favor of Denmark, reaffirming Denmark’s sovereignty over the maritime areas based on Greenland’s territorial status. You can read more about the case here: ICJ Case 78.
Trade & Economic Policy
As a member of the EU, Denmark is subject to EU trade policies. Any U.S. sanctions imposed on Denmark would be considered EU sanctions and addressed at the European level. Tariffs are generally viewed as counterproductive, as they hinder international trade, specialization, and competition. If tariffs were introduced, prices would likely rise, making it more challenging for Danish companies to compete. However, past cases, such as tariff increases in the transport sector, have shown that markets can absorb price increases over time.
At present, Danish companies with U.S. ties are closely monitoring the situation, and no significant adjustments have been made. However, as uncertainty grows, businesses are expected to explore alternative markets.
Denmark participates in detailed trade agreements between the EU and the U.S. As an EU member state, Denmark follows EU directives and negotiations in trade matters. The European Commission has expressed its support for Denmark, and the EU is expected to maintain a unified stance on the issue. Consequently, Denmark will not act independently regarding trade and tariffs with the U.S.
