The Greenland flag in the village of Igaliku in Greenland on July 5, 2024.Ida Marie Odgaard/The Associated Press
Bart Édes is a professor of practice at the Institute for the Study of International Development, McGill University, and a distinguished fellow at the Asia Pacific Foundation of Canada. He is the author of Learning from Tomorrow: Using Strategic Foresight to Prepare for the Next Big Disruption.
U.S. president-elect Donald Trump is apparently in an expansionist mood. Coercing Canada to become part of the United States through “economic force” is not the only such threat he has made. Mr. Trump has also revived his idea of taking over the self-governing Danish territory of Greenland, which during his first term he had mused about buying. On Jan. 7, Donald Trump Jr. travelled to Nuuk, Greenland’s capital, to bring attention to his father’s expressed wish to take over the world’s largest island.
Denmark has been put on the defensive, and its government responded by insisting that the territory is not for sale. The head of state, King Frederik X, visually drove home the point that Greenland remains part of Denmark by enlarging the territory’s representation (a polar bear) on the royal coat of arms.
Amid the geopolitical tug-of-war between Washington and Copenhagen over Greenland’s future, one critical fact is often overlooked: It is Greenlanders themselves who will determine their destiny. They have shown little interest in subjugation under a New World imperialist, but they also have a complex and uneasy relationship with their European colonizer. For the government in Nuuk, the path forward is clear – breaking away from the Kingdom of Denmark is essential to addressing historical injustices and achieving full sovereignty. Public support for independence is strong, and Greenland’s Prime Minister, Múte Bourup Egede, has declared that it is time to “remove the shackles of colonialism.”
If Greenland does become independent, to have some sort of special relationship with a bigger economy is not in itself an outlandish idea. Once Greenland steps into a new chapter of sovereignty, it will find itself at a crossroads – a very lightly populated state on a very large landmass, once heavily dependent on subsidies from distant Denmark. What should Greenland do next?
The answer is right next door: enter into an economic union with Canada. The logic for such a union between friendly Arctic democracies is compelling and would be constructed on intertwined history, geographic proximity, complementary strengths, and shared ethnic ties.
By partnering with Canada, Greenland could achieve economic self-reliance while preserving its cultural and environmental heritage. Unlike Greenland’s current and aspiring foreign masters, Canada is not approaching the island as some sort of conqueror. An economic union represents a chance to deepen the two countries’ collaborative leadership in the Arctic and forge a lasting legacy of co-operation and unity.
Once an economic union has been successfully implemented and proven beneficial, the two sovereign countries could even explore the possibility of forging a complete political union if they assess that their respective aspirations could be achieved within a common federal state. Benelux, a regional co-operation agreement among three European states (Belgium, the Netherlands, and Luxembourg) provides a model that could inform the structure of the Canada-Greenland partnership.
Most of Greenland’s population traces its history back to settlers who migrated from what is today Northern Canada. The Thule people, ancestors of today’s Inuit, reached Greenland in the 1200s. As in Greenland, more than four-fifths of the population of Nunavut, which borders on Greenland, is Inuit. Historically, Inuit in both Nunavut and Greenland have relied on hunting, fishing, and subsistence living to survive the harsh environment. This has fostered similar traditions, tools, and practices.
The Inuit Circumpolar Council links Inuit across the Arctic, including those in Greenland and Nunavut. It advocates for their cultural, environmental, and political rights on a global stage. Through the council, Greenlanders and Nunavummiut co-operate on initiatives on climate change adaptation, sustainable development, and the protection of Arctic sovereignty.
Canada is the only country with which Greenland shares a land border (on Tartupaluk, or Hans Island, situated in the Kennedy Channel of the Nares Strait, an island once disputed between Canada and Denmark). Last year, the Inuit-owned airline Canadian North launched a seasonal route between Ottawa and Nuuk via Iqaluit, Nunavut’s largest city and seat of government. Indeed, Greenland and Arctic Canada have become increasingly connected by shipping routes and air travel, enabling the exchange of goods, ideas, and people.
By forging an economic union, Canada and Greenland could create a model of co-operation that advances economic growth, environmental sustainability, and cultural preservation. It would also anchor Greenland more securely in its natural continental home of North America.
What would such a union look like? The two partners would remove trade barriers, adopt common economic policies, and align their economies to foster greater economic co-operation. They would also adopt a common market, shared regulations, and replace the anachronistic Danish krone with the Canadian dollar. Citizens of the two countries would have the right to move, reside, study and work anywhere within the union.
Greenland, with its vast untapped natural resources, complements Canada’s established expertise in resource management and Arctic development. Greenland boasts rich deposits of rare earth minerals essential for technologies such as wind turbines, electric vehicles, and advanced electronics. As the world transitions to a green economy, these resources are becoming increasingly vital.
Canada, with its world-class mining industry and commitment to sustainable practices, can provide the investment, technology, and know-how needed to responsibly develop these resources, ensuring that Greenland benefits economically while preserving its fragile environment.
In addition, Greenland’s fisheries – already a cornerstone of its economy – would find a natural partner in Canada, which has a long history of sustainable fisheries management. By co-ordinating policies and sharing best practices, both countries can protect marine ecosystems while ensuring the long-term viability of this critical industry.
Tourism is another area of immense potential. The Arctic is one of the world’s last frontiers for adventure and eco-tourism. Together, Canada and Greenland can develop infrastructure, create joint marketing campaigns, and offer seamless travel experiences that attract global visitors while respecting the cultural and environmental integrity of the region.
Greenland’s path to independence brings opportunities. While the country has immense resource potential, its economy remains underdeveloped and heavily reliant on the generosity of its benefactors on the Old Continent. An economic union with Canada would provide Greenland with the tools to diversify its economy and build a sustainable foundation for long-term growth. It would also closely link Greenland to a G7 country that ranks among the best in the world in terms of quality of life and a place to work.
By joining forces, Greenland can benefit from Canada’s established financial systems, trade networks, and infrastructure expertise. Canadian investment in Greenland’s ports, roads, and energy projects would unlock economic opportunities while creating jobs and improving quality of life. For Canada, this partnership would open doors to a new market and strengthen its strategic presence in the Arctic.
The Arctic has become a region of global significance, with climate change, resource competition, and geopolitical tensions reshaping its future. A Canada-Greenland economic union would position both countries as leaders in Arctic governance, providing a united voice in international forums such as the Arctic Council and the United Nations.
Together, Canada and Greenland can champion policies that prioritize sustainable development, Indigenous rights, environmental protection and climate action. Joint investments in Arctic research and renewable energy would set an example for other countries, demonstrating how economic growth and environmental stewardship can go hand-in-hand.
The union would also enhance security and sovereignty in the Arctic. As ice melts and shipping routes open, Canada and Greenland would be better equipped to manage maritime traffic, enforce environmental regulations, and protect their shared interests against external pressures from global powers.
One of the most compelling arguments for an economic union is the opportunity to empower Indigenous communities on both sides of the Davis Strait. The Inuit and other Indigenous groups have historically faced marginalization, but a partnership focused on cultural preservation and economic inclusion can reverse this trend.
A Canada-Greenland economic union would prioritize Indigenous leadership in decision-making processes, ensuring that economic development aligns with cultural values and traditional knowledge. Joint initiatives in education, language preservation, and cultural exchange would strengthen ties between communities and create a sense of shared identity and purpose.
The 1993 Nunavut Land Claims Agreement provides a positive signal for how Canada would engage a sovereign Greenland. The agreement granted the Inuit of Nunavut control over their lands, resources, and governance while also ensuring their participation in economic, political, and social decisions. It also laid the groundwork for collaborative decision-making, recognition of cultural identity, and economic development tailored to the specific needs of the Inuit people.
It is true that geographical and logistical barriers pose challenges. Greenland’s remote location and limited infrastructure require significant investment to support trade and integration. However, these challenges are not insurmountable, especially with Canada’s extensive experience in developing Northern infrastructure.
In the spirit of the connections that first brought people from Canada to Greenland many centuries ago, forging stronger bilateral relations and integrating their economies would be a modern continuation of a shared journey. It would honour the past, embrace the present, and create enormous opportunities in the coming decades.