Greenland–European Union relations

Greenland-European Union relations

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Greenland has a special relationship with the European Union (EU) due to its link with the EU state of Denmark, Greenland's parent country.

Trade

In 2010, Greenland's exports to the EU amounted to €331 million (a 92.7% share of Greenland's total exports) and the Greenland imports from the EU were valued at €614 million (68.9% of all Greenland's imports). Exports to the EU were mainly food and live animals (89%). Imports from the EU included mineral fuels, lubricants (and related goods), machinery and transport equipment (together 47%). The EU is Greenland's main trading partner. However, Greenland ranks as the EU's 103rd largest trading partner.[1]

In 2009 the EU put in place an import ban on seal fur on grounds on animal cruelty, but made exemptions for Inuit communities in Greenland and Canada in order to protect their way of life. The ban only allows small scale hunts for population control and local circulation - produce is not allowed to enter the EU. The ban angered those communities in the Arctic Circle who depend on sales from large scale seal hunting.[2][3]

There are plans to open a large iron mine, called Isua, but this is put on hold since prices have declined after 2011. It would really have impact on Greenlandic economy.

OCT status

Thanks to its link with Denmark, Greenland is listed as one of the Overseas Countries and Territories (OCT) of the EU. As a result, Greenland has some integration with the EU's internal market via association agreements. It is also within the EU's common external tariff but they may charge customs in a non-discriminatory manner. Greenlandic citizens have EU citizenship.[4] OCT nationals can be granted the right to vote for and participate in the election of the European Parliament, subject to the conditions defined by the related member states in compliance with Community law.[5]

Up to 2006, all EU funds to Greenland (then €42.8 million per year) went via the EU – Greenland fishing agreement. Between 2007 and 2013, the EU provided €25 million per year outside of fishing.[6] It has been given aid since it pulled out of the EU (see below) in 1985 to roughly the same amount it was previously receiving in EU structural funds (which it lost the right to receive due to its secession). This amounted to about 7% of Greenland's budget. The amount paid via the fishing agreement was in return for EU vessels fishing in Greenland's waters and to help restructure Greenland's fishing fleet. However, this deal was struck down by the European Court of Auditors, who felt the amount the EU was paying was too high for the quantity of fish caught.[7]

Outside the EU

Greenland originally joined the then-European Communities with Denmark in 1973. However, it left following a referendum in 1985, with 53% voting for withdrawal after a dispute over fishing rights.[8] The Greenland Treaty formalized their exit.

There has been some speculation as to whether Greenland may consider rejoining the European Union, although this seems highly unlikely to occur any time soon. On 4 January 2007, the Danish daily Jyllands-Posten quoted the former Danish minister for Greenland, Tom Høyem, as saying "I would not be surprised if Greenland again becomes a member of the EU ... The EU needs the Arctic window and Greenland cannot alone manage the gigantic Arctic possibilities".[9] The debate has been reignited[10] in light of the 2008–2012 Icelandic financial crisis. The EU Common Fisheries Policy is an important reason that Greenland, Norway and Iceland stays outside the EU. There was hope that the Icelandic negotiations on EU membership 2011-2013 could create an exception to the policy but the negotiations never got that far.


Footnotes

  1. ↑ EU BILATERAL TRADE AND TRADE WITH THE WORLD (PDF), European Commission
  2. ↑ Arctic communities angered by EU seal product ban Copenhagen Post 2009
  3. ↑ EU takes aim at Canada, bans seal products, Guardian 2009
  4. ↑ Article 17 of European Union Treaty as of 1999
  5. ↑ Green paper on future relations between EU and overseas countries/territories, 3. 1. 1. http://ec.europa.eu/development/icenter/repository/1_EN_ACT_part1_v8.pdf
  6. ↑ EU Relations with Greenland, EEAS
  7. ↑ A new deal for Greenland and the EU?, EFC
  8. ↑ European Commission (2005-11-10). "1985". The History of the European Union. Retrieved 2006-01-18.
  9. ↑ "Greenland could re-join the EU". EUobserver Review. 2007-01-05. Retrieved 2007-06-25.
  10. ↑ EU membership debate, Sermitsiaq

See also

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