The Faroe Islands in WTO? A Path to Sovereignty and Recognition or Paradiplomatic Crisis with Denmark over the Arctic?

I analyze the issue and focus on how the study of substates can contribute to a broader understanding of the dynamics within the Arctic. I include theoretical perspectives from substate literature on sovereignty, recognition, and paradiplomacy to uncover opportunities and consequences in the relationship between the substate, the Faroe Islands, and the administering country, Denmark. I analyze the Supreme Court ruling and the Faroe Islands’ admission to the WTO as an independent case study that contributes substantially to describing sovereignty dynamics for other substates and their relationship with international organizations. I analyze the Faroe Islands from an actor perspective, where Faroese leaders’ articulations, actions, and the consequences of those actions constitute knowledge about substate affairs within the Kingdom of Denmark that is interesting to investigate. I will discuss the consequences of a more sovereign Faroe Islands in the geopolitical situation in the Arctic, and its implications for the relationship between Denmark, US, EU and Russia.

I argue that the Faroe Islands’ admission to the WTO strengthens equality and consensus-based progression within the Kingdom of Denmark. It increases Faroese self-determination and contributes to the development of a closer semi-federal union with the Faroe Islands. At the same time, it places the Faroe Islands in a larger foreign and geopolitical context that is complex to navigate, where the Faroe Islands may become entangled in relations with the EU, Russia, China, and the U.S.