The Law Library of Congress, Global Legal Research Center 

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Trade Implications of Brexit: 

Lessons from Austria’s Accession 

and Greenland’s Withdrawal 

April 2017
This report is provided for reference purposes only. 

It does not constitute legal advice and does not represent the official 

opinion of the United States Government. The information provided 

reflects research undertaken as of the date of writing. 

It has not been updated.
Contents 

Introduction ......................................................................................................................................1 

Austria ..............................................................................................................................................3 

Greenland .......................................................................................................................................12 
Introduction 

Jenny Gesley

Foreign Law Specialist

On June 23, 2016, the United Kingdom (UK) held a referendum on whether to leave or to remain 

in the European Union (so-called “Brexit”), with 51.9% of the people voting in favor of leaving.1

The procedure for withdrawal from the European Union (EU) is governed by article 50 of the

Treaty on European Union (TEU),2as introduced by the Treaty of Lisbon in 2007.3 It states that 

“[a]ny Member State of the EU may decide to withdraw from the Union in accordance with its 

own constitutional requirements.”4 Before the Treaty of Lisbon, a Member State’s right to 

withdraw from the EU had been highly controversial. 

Article 50 of the TEU has never been used and presents uncharted political and legal territory. It 

is only applicable to the withdrawal of Member States. The UK’s withdrawal process was 

officially commenced on March 29, 2017, when British Prime Minister Theresa May notified the 

European Council of the UK’s intention to leave the EU.

5

 The notification triggered a two-year 

period of negotiations.6 The EU intends to finish the withdrawal process (“divorce”) before it 

negotiates its future relationship and trade deal with the UK. There will be no parallel 

negotiations of the two issues.7

As there is no precedent for a Member State leaving the EU, negotiations surrounding the 

accession of new member states or the withdrawal of countries or territories that are associated 

with an EU Member State might provide some guidance for trade implications and a future trade 

deal. This report will look at the accession of Austria to the EU as an example of a General 

Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) member joining 

the EU. Austria has been a member of GATT since October 19, 1951 and a WTO member since 

January 1, 1995. Its relationship with the EU slowly intensified from 1960 to 1989, when it

submitted an application to become a full member. It joined the EU after its accession was 

1 EU Referendum Results, THE ELECTORAL COMMISSION, http://www.electoralcommission.org.uk/find-informationby-subject/elections-and-referendums/past-elections-and-referendums/eu-referendum/electorate-and-countinformation (last visited Apr. 12, 2017), archived at http://perma.cc/NR4X-35PH. 

2 Treaty on European Union (TEU), 2012 O.J. (C 326) 13, http://eur-lex.europa.eu/resource.html?uri=cellar: 

2bf140bf-a3f8-4ab2-b506-fd71826e6da6.0023.02/DOC_1&format=PDF, archived at http://perma.cc/D6TR-LVCF. 

3 Treaty of Lisbon, 2007 O.J. (C 306) 1, http://publications.europa.eu/resource/cellar/688a7a98-3110-4ffe-a6b3-

8972d8445325.0007.01/DOC_19. (File too large to archive). 

4 Id. art. 50, para. 1. 

5 Article 50 Notification Letter from Theresa May, Prime Minister of the United Kingdom, to Donald Tusk, 

President of the European Council (Mar. 29, 2017), http://www.consilium.europa.eu/en/press/press-releases/ 

2017/03/pdf/070329_UK_letter_Tusk_Art50_pdf/, archived at http://perma.cc/6FJJ-JJK8. 

6 Id. art. 50, para. 3.

7 European Commission, Speech by Michel Barnier, Chief Negotiator for the Preparation and Conduct of the 

Negotiations with the United Kingdom, at the Plenary Session of the European Committee of the Regions (Mar. 22, 

2017), http://europa.eu/rapid/press-release_SPEECH-17-723_en.htm, archived at http://perma.cc/9CYK-MHWL. 

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approved in a referendum in 1995. The different stages of cooperation between Austria and the 

EU, and the evolving trade relationship as well as the negotiations to become a full member, 

could serve as an example of how the relationship between the EU and the UK can be 

disentangled or what a future trade relationship could look like. 

As an example of a withdrawal, this report will examine the withdrawal of Greenland, an 

autonomous territory within the EU Member State Denmark, from the EU’s predecessor, the 

European Economic Community (EEC). Greenland was part of the EEC from 1973 until 1985. 

It acceded to the EEC in 1973 with Denmark, after Denmark as a whole voted in favor of joining 

while a substantial majority of voters in Greenland opposed. When Greenland attained greater 

authority over its sovereignty, it withdrew from the EEC following a referendum in 1982. It is 

now associated to the EU under the Overseas Association Decision.8 The Overseas Countries 

and Territories (OCTs) are twenty-five countries and territories that have special links to 

Member States Denmark, France, the Netherlands, or the UK.9 As a consequence of the 

withdrawal, Greenland needed to renegotiate its fisheries agreement with the EEC. Its fisheries 

rights now are similar to those it had while still part of the EEC, but it has the opportunity to 

renegotiate the agreement every six years, and tariffs and quotas are renegotiated on an 

annual basis. 

Another example sometimes mentioned with regard to a “withdrawal” from the EU is Saint 

Barthélemy (St. Barths). In 2007, St. Barths, at the time an outermost region (OR) of France, 

separated from Guadeloupe. That decision had no influence on its position under EU law. In 

2010, France submitted an initiative based on article 355, paragraph 6 of the Treaty on the 

Functioning of the European Union (TFEU) to the European Council to change the EC law status 

of St. Barths from an OR to an OCT. The status change became effective on January 1, 2012.10 

The relationship between the EU and St. Barth is now governed by the Overseas 

Association Decision. 

8

 Council Decision 2013/755/EU of 25 November 2013 on the Association of the Overseas Countries and Territories 

with the European Union (Overseas Association Decision), 2013 O.J. (L 344) 1, http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32013D0755&from=EN, archived at http://perma.cc/T5E2-8Z8R. 

9

 Consolidated Version of the Treaty on the Functioning of the European Union (TFEU) art. 198, 2012 O.J. (L 326) 

47, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:12012E/TXT&from=en, archived at 

http://perma.cc/6ZXF-JAHS. 

10 Council Decision 2010/718/EU, European Council Decision of 29 October 2010 amending the Status with Regard 

to the European Union of the Island of Saint-Barthélemy, art. 1, 2010 O.J. (L 325) 4, http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32010D0718&qid=1492547878104&from=en, archived at http://perma.cc/ 

6F7P-VRNT. 
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Austria 

Jenny Gesley 

Foreign Law Specialist

SUMMARY The relationship between Austria and the EU intensified slowly from 1960 until 1995 

when Austria became a full member. In 1960, Austria and six other states founded the 

European Free Trade Association (EFTA) to provide a framework for the liberalization of 

trade in goods. After unsuccessful attempts to conclude an association agreement with the 

EU, the trade relationship between Austria and the EU was first governed by a general free 

trade agreement and other bilateral agreements. The conclusion of the European 

Economic Area Agreement between the EFTA members and the EU allowed Austria to 

participate in the EU internal market. In 1989, Austria submitted an application for full 

membership. Formal negotiations were conducted from 1993 until 1994. The Austrian 

people approved the accession to the EU in a referendum in June 1994.

I. General Membership Criteria 

According to article 49 of the Treaty on European Union (TEU), “[a]ny European State which 

respects the values referred to in Article 21 and is committed to promoting them may apply to 

become a member of the Union.”2

 Any country wishing to join has to fulfill key political and 

economic criteria for accession, as defined at the 1993 European Council in Copenhagen 

(“Copenhagen criteria”).3

 The Copenhagen criteria overlap to some extent with the conditions 

spelled out in article 49 of the TEU. They must be taken into account when a membership 

application is considered.4

The Copenhagen criteria state that a country must have stable institutions guaranteeing 

democracy, the rule of law, human rights, and respect for and protection of minorities; a 

functioning market economy and the capacity to cope with competition and market forces; and 

the administrative and institutional capacity to effectively implement the acquis communautaire 

(acquis)5

 and the ability to take on the obligations of membership. In addition, the EU must have 

the capacity to integrate a new member. When the EU decides that a country is ready to fulfill 

these criteria, it becomes an official candidate for membership.6

1

 The values referred to are human dignity, freedom, democracy, equality, the rule of law, and respect for human 

rights, including the rights of persons belonging to minorities. 

2

 Treaty on European Union (TEU) art. 49, 2012 O.J. (C 326) 13, http://eur-lex.europa.eu/resource.html?uri=cellar: 

2bf140bf-a3f8-4ab2-b506-fd71826e6da6.0023.02/DOC_1&format=PDF, archived at http://perma.cc/D6TR-LVCF. 

3

 Presidency Conclusions, Copenhagen European Council (June 21–22, 1993), http://www.europarl.europa.eu/ 

summits/copenhagen/co_en.pdf, archived at http://perma.cc/AN3K-ZKVC. 

4

 TEU art. 49, para. 1, sentence 4. 

5

 The acquis is a constantly evolving body of EU primary and secondary law and obligations that are binding on all 

EU member states. 

6

 Presidency Conclusions, supra note 3. 
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The application for membership is addressed to the Council of the European Union (EU 

Council), which is made up of one government representative from each EU Member State.7

 

The European Parliament and the national parliaments are notified of the application. Formal 

membership negotiations with a candidate country cannot start until all EU member governments 

agree on a framework or mandate for negotiations with the candidate country in an 

intergovernmental conference. The framework will address the conditions and timing of the 

applicant country’s adoption, implementation, and enforcement of the EU acquis. The acquis is 

divided into thirty-five different chapters (covering topics such as the four EU freedoms of the 

internal market, transport, energy, environment, financial arrangements, etc.), each of which is 

negotiated separately.8

 For some chapters, rules will be phased in gradually. The process is 

monitored by the EU Commission, which regularly updates the EU Parliament and the EU 

Council on its progress.9

 The duration of the negotiations varies depending on how prepared a 

country is to join. 

At the end of the screening and monitoring process, the EU Commission delivers a final opinion 

to the EU Council on whether it recommends accepting the application. In addition, the EU 

Parliament must approve the application by a majority of its members. The requirement that the 

EU Parliament has to consent was added in 1986.10 The EU Parliament can therefore prevent the 

accession of new members. 

The EU Council has the final say on whether the candidate country should be allowed to join. 

The Council’s decision must be unanimous.11 After the application is accepted, the political 

agreements are codified in a legal text (known as an accession treaty) which is then signed by the 

EU Member States and the candidate country. The accession treaty spells out the conditions for 

admission of the candidate country and the adjustments to EU treaties.12 Each EU Member State 

and the candidate country need to ratify the accession treaty in accordance with their respective 

constitutional requirements and deposit the instrument of ratification with the 

Italian government.13

 

 

7

 TEU art. 16, para. 2. 

8 Chapters of the Acquis, EUROPEAN COMMISSION, https://ec.europa.eu/neighbourhood-enlargement/policy/ 

conditions-membership/chapters-of-the-acquis_en (last updated Dec. 6, 2016), archived at http://perma.cc/5CM2-

4VTY. 

9 Conditions for Membership, EUROPEAN COMMISSION, https://ec.europa.eu/neighbourhood-enlargement/policy/ 

conditions-membership_en (last updated Dec. 6, 2016), archived at http://perma.cc/C7NG-H9RK. 

10 Single European Act art. 8, 1987 O.J. (L 169) 1, http://eur-lex.europa.eu/resource.html?uri=cellar:a519205f-924a4978-96a2-b9af8a598b85.0004.02/DOC_1&format=PDF, archived at http://perma.cc/SV5Y-T99L. 

11 TEU art. 49, para. 1 

12 TEU art. 49, para. 2, sentence 1. 

13 TEU art. 40, para. 2, sentence 2. As the original EEC Treaty was signed in Rome, the Italian government is the 

depository for EU treaties and any amending treaties and acts. 
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II. Austria’s EFTA Membership 

Austria was one of the founding members of the European Free Trade Association (EFTA), an 

intergovernmental organization established by the Stockholm Convention on January 4, 1960.14 

The other founding members were Denmark, Norway, Portugal, Sweden, Switzerland, and the 

United Kingdom. Finland became a full member in 1986. Iceland acceded to EFTA in 1970. 

The aim of EFTA is to provide a framework for the liberalization of trade in goods amongst its 

member states. At the time, it was also seen as a counterbalance to the emerging European 

Economic Community (EEC).15 EFTA is only a free trade agreement and not a customs union, 

so members retain responsibility to set their own tariffs with countries outside of EFTA and may 

conclude other free trade agreements with third countries. 

On May 2, 1992, the European Economic Area Agreement (EEA Agreement) was signed by the 

EU Member States and the EFTA states.16 It entered into force on January 1, 1994. 

Liechtenstein joined on May 1, 1995. Switzerland rejected the EEA Agreement in a referendum 

held on December 6, 1992.17 

One of the aims of the EEA Agreement was “to contribute, on the basis of market economy, to 

worldwide trade liberalization and cooperation, in particular in accordance with the provisions of 

the General Agreement on Tariffs and Trade.”18 It obligated the EFTA countries to implement 

EU legislation covering the free movement of goods, services, persons, and capital in order to 

participate in the internal market, but left them without the possibility of taking part in the 

decision making.19 The EEA members therefore already fulfilled approximately half of the 

conditions of accession to the EU. The EEA Agreement did not cover the Customs Union, the 

Common Trade Policy, the Common Foreign and Security Policy, Justice and Home Affairs, the 

Economic and Monetary Union, or the Common Agriculture and Fisheries Policies (although it 

did contain provisions on various aspects of trade in agricultural and fish products).20

 

14 Übereinkommen zur Einrichtung der Europäischen Freihandelsassoziation [Convention Establishing the European 

Free Trade Association], Jan. 4, 1960, BUNDESGESETZBLATT [BGBL.] [FEDERAL LAW GAZETTE] No. 100/1960, 

https://www.ris.bka.gv.at/Dokumente/BgblPdf/1960_100_0/1960_100_0.pdf, archived at http://perma.cc/V3P2-

8T66. 

15 The EEC was later renamed the European Community (EC) and would eventually become the EU. 

16 Agreement on the European Economic Area (EEA Agreement), 1994 O.J. (L 1) 3, http://eur-lex.europa.eu/legalcontent/EN/TXT/HTML/?uri=CELEX:31994D0001&from=EN, archived at http://perma.cc/9FEX-D4ZJ. 

17 Bundesratsbeschluss über das Ergebnis der Volksabstimmung vom 6. Dezember 1992 (Europäischer 

Wirtschaftsraum [EWR]) [Decision of the Federal Council on the Result of the Referendum of Dec. 6, 1992 

(European Economic Area [EEC]), 1993 BUNDESBLATT [BBL.] [FEDERAL GAZETTE] I at 167, https://www. 

amtsdruckschriften.bar.admin.ch/viewOrigDoc.do?id=10052502, archived at http://perma.cc/AP4Z-P4NM. 

18 EEA Agreement pmbl. 

19 EEA Agreement art. 1. 

20 EEA Agreement, EFTA, http://www.efta.int/eea/eea-agreement (last visited Apr. 18, 2017), archived at

http://perma.cc/KGU5-SV5J. 
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For most countries, membership in EFTA was only the first step to joining the European 

Economic Area (EEA) and/or subsequently becoming a member of the EU. Membership in 

EFTA was the first step for Austria towards European integration. 

III. Application for Association 

In 1961, Austria applied for the first time for association with the European Community along 

with the other neutral EFTA members Sweden and Switzerland on the basis of former article 238 

of the Treaty Establishing the European Economic Community (EEC Treaty). Article 238 of the 

EEC Treaty allowed the EEC to conclude agreements “establishing an association involving 

reciprocal rights and obligations, common action and special procedure” with one or more third 

countries or international organizations.21 The negotiations failed mainly as a result of the 

neutrality issue.22 Austrian and Finnish neutrality in the post-World War II period resulted from 

their situation as smaller and weaker states located between powerful countries in the East and 

West. For them it was more opportune to act as a buffer between the powerful military 

alliances.23 Austria’s neutrality is laid down in the Federal Constitutional Law on the Neutrality 

of Austria.24

In 1963, Austria submitted another application for association based on article 238 of the EEC 

Treaty. Negotiations were conducted from 1965 to 1967, but failed because of various political 

problems, among them the hostility of the Soviet Union towards a closer relationship between 

the EEC and Austria and the question of autonomy of South Tyrol between Italy and Austria.25

IV. Free Trade and Bilateral Agreements between Austria and the EEC 

Due to the failure of the conclusion of a far-reaching association agreement, Austria and the EEC 

instead entered into negotiations to abolish tariffs for goods. In 1972, on the basis of former 

article 113 of the EEC Treaty,26 Austria and the EEC concluded an interim free trade 

 

21 EEC Treaty art. 238 (as in effect 1961) (now Consolidated Version of the Treaty on the Functioning of the 

European Union (TFEU) art. 217, 2012 O.J. (L 326) 47, http://eur-lex.europa.eu/legal-content/EN/TXT/ 

PDF/?uri=CELEX:12012E/TXT&from=en, archived at http://perma.cc/6ZXF-JAHS). 

22 European Parliament, Directorate-General for Internal Policies of the Union, The Accession Negotiations with 

Austria, Sweden, Finland, and Norway at 6 (June 1994), http://bookshop.europa.eu/en/the-accession-negotiationswith-austria-sweden-finland-and-norway-pbQAPOLIE02/downloads/QA-PO-LI-E02-EN-N/QAPOLIE02ENN 

_002.pdf;pgid=GSPefJMEtXBSR0dT6jbGakZD00009LKmv2EI;sid=xhB2Wflml3R2WaGQyXXo_ptDwcNwiluluk

A=?FileName=QAPOLIE02ENN_002.pdf&SKU=QAPOLIE02ENN_PDF&CatalogueNumber=QA-PO-LI-E02-

EN-N, archived at http://perma.cc/A4KP-6FYX. 

23 Id. at 29. 

24 Bundesverfassungsgesetz vom 26. Oktober 1955 über die Neutralität Österreichs [Federal Constitutional Law of 

October 26, 1955 on the Neutrality of Austria], Oct. 26, 1955, BGBL. No. 211/1955, https://www.ris.bka.gv.at/ 

GeltendeFassung/Bundesnormen/10000267/Neutralitätsgesetz, Fassung vom 24.04.2017.pdf, archived at

http://perma.cc/22S9-REPL, English translation available at https://www.ris.bka.gv.at/Dokumente/Erv/ERV_1955_ 

211/ERV_1955_211.pdf, archived at http://perma.cc/MKS6-MQK4. 

25 European Parliament, supra note 22, at 6. 

26 EEC Treaty art. 113 (as in effect 1961) (now TFEU art. 207). It allowed the conclusion of trade agreements with 

third countries or international organizations in the area of the common commercial policy. 
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agreement27 which entered into force on October 1, 1972.28 It was replaced by a general free 

trade agreement (FTA) shortly thereafter, which entered into force on January 1, 1973.29 It was 

negotiated by the EEC in parallel with FTAs with other EFTA members. During a brief period 

of fifteen months, Austria alone qualified for a greater initial tariff reduction than the other 

EFTA countries because of the interim agreement, which came into force three months before 

the general free trade agreement. It received an initial tariff reduction of 30% instead of the 20% 

agreed upon in the general FTAs with the other EFTA countries.30

In addition to the general FTA with the EEC, another agreement was concluded with the 

European Coal and Steel Community (ECSC), another one of the three pillars of the 

European Communities.31 

FTAs are compatible with World Trade Organization (WTO) rules as long as certain conditions 

are observed to ensure the complementarity of the FTA with the WTO system. This includes, 

among others, the conditions specified in article XXIV of the GATT (trade in goods)32 and in 

article V of the GATS (trade in services).33 The general FTA with Austria envisaged the 

progressive implementation of a free trade area for industrial goods and certain processed 

agricultural products, but did not set up a customs union, which would involve a joint 

external tariff.34 

 

27 Interimsabkommen zwischen der Europäischen Wirtschaftsgemeinschaft und der Republik Österreich [Interim 

Agreement between the European Economic Community and the Republic of Austria], 1972 O.J. (L 223) 3, 

http://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:21972A0929(01)&from=DE, archived at 

http://perma.cc/FVW5-LLQZ. 

28 Mitteilung bezüglich des Zeitpunkts, zu dem das Interimsabkommen zwischen der Europäischen 

Wirtschaftsgemeinschaft und der Republik Österreich in Kraft tritt [Notification Concerning the Entry Into Force of 

the Interim Agreement between the European Economic Community and the Republic of Austria], 1972 O.J. 

(L 223) 84, http://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=OJ:JOL_1972_223_R_0084_01&from=DE, 

archived at http://perma.cc/SLQ9-VAPJ. 

29 Abkommen zwischen der Republik Österreich und der Europäischen Wirtschaftsgemeinschaft samt Anhang und 

Protokolle Nr. 1 bis 5 samt Anhängen sowie Erklärung und Notenwechsel samt Anhang [Free Trade Agreement 

between the Republic of Austria and the European Economic Community including Annex and Protocols No. 1 to 5 

including Annexes as well as a Declaration and Exchange of Notes including Annex] (General FTA Austria–EEC), 

BGBL. No. 466/1972, https://www.ris.bka.gv.at/Dokumente/BgblPdf/1972_466_0/1972_466_0.pdf, archived at

http://perma.cc/JF2N-K647. 

30 Interim Agreement between the European Economic Community and the Republic of Austria art. 2; General FTA 

Austria–EEC art. 2, para. 2. 

31 Abkommen zwischen der Republik Österreich einerseits und den Mitgliedstaaten der Europäischen Gemeinschaft 

für Kohle und Stahl und der Europäischen Gemeinschaft für Kohle und Stahl andererseits samt Anhang und 

Protokollen Nr. 1 und 2 sowie Erklärung [Agreement between the Republic of Austria on the one hand and the 

Member States of the European Coal and Steel Community and the European Coal and Steel Community on the 

other hand including the Annex and Protocols No. 1 and 2 as well as a Declaration] BGBL. No. 467/1972, https:// 

www.ris.bka.gv.at/Dokumente/BgblPdf/1972_467_0/1972_467_0.pdf, archived at http://perma.cc/7WK7-3RW9. 

32 General Agreement on Tariffs and Trade 1994 (GATT 1994), 1867 U.N.T.S. 187, https://www.wto.org/english/ 

docs_e/legal_e/06-gatt.pdf, archived at http://perma.cc/39UN-2MUF. 

33 General Agreement on Trade in Services (GATS), 1869 U.N.T.S. 183, https://www.wto.org/english/docs_e 

/legal_e/26-gats.pdf, archived at http://perma.cc/6Q8Q-9RAD. 

34 General FTA Austria–EEC, supra note 29, art. 3. 
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Other bilateral agreements were concluded between Austria and the EEC in the area of transit of 

goods. Because of Austria’s geographical location, a high volume of EEC goods were 

transported through Austria. In addition, Austria wanted to take precautions to avoid 

environmental threats to the Alpine passes caused by heavy goods vehicles. In 1972, a first 

EEC-Austria transit agreement was concluded.35 The aim of the agreement was to simplify 

customs procedures affecting the transit of EU goods.36 Another transit agreement was 

concluded in 1975.37 It dealt with the conditions of passage through and warehousing in Austria 

of goods traded between the EEC and Greece and Turkey. Its goal was to simplify customs 

formalities and facilitate trade between the northern EEC Member States and southern states 

with which the EEC had association agreements.38 In 1992, parallel to the EEA negotiations, 

another transit agreement was concluded which created an “eco points system” of transit licenses 

to reduce the emissions and noise generated by heavy goods vehicles transiting 

Austrian territory.39

V. Accession of Austria to the EEC 

A. Reasons for Membership 

In the mid-1980s, Austria’s industry struggled and economic growth stagnated. The EEC was 

working on completing the internal market and Austria feared it would lose market share.40 The 

EEC market was important for Austria, because it traded most of its goods with EU Member 

States and had the highest percentage of EFTA exports to the EU. In the late 1980s, more than 

60% of Austria’s exports went to EU countries.41 Austria approached the EEC with a proposal 

to participate in the internal market and the decision-making process without becoming a full 

member, but this idea was rejected by the EU.42 Austria’s business associations and the Federal 

 

35 Abkommen zwischen der Europäischen Wirtschaftsgemeinschaft und der Republik Österreich zur Anwendung 

der Bestimmungen über das Gemeinschaftliche Versandverfahren [Agreement between the European Economic 

Community and the Republic of Austria on the Application of the Community Customs Transit Rules], 1972 O.J. 

(L 294) 87, http://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:21972A1130(01)&from=DE, 

archived at http://perma.cc/GX5G-4QE8. 

36 Id. art. 1. 

37 Agreement between the European Economic Community and the Republic of Austria on the simplification of 

formalities in respect of goods traded between the European Economic Community on the one hand and Greece and 

Turkey on the other hand when the said goods are forwarded from Austria, 1975 O.J. (L 188) 2, http://eur-lex. 

europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:21975A0611(01)&from=EN, archived at http://perma.cc/ 

8N87-JWS2. 

38 Id. pmbl. 

39 Agreement between the European Economic Community and the Republic of Austria on the Transit of Goods by 

Road and Rail art. 15, 1992 O.J. (L 373) 6, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX: 

21992A1221(01)&from=EN, archived at http://perma.cc/KL7M-PDK2. 

40 PAUL LUIF, ON THE ROAD TO BRUSSELS: THE POLITICAL DIMENSION OF AUSTRIA’S, FINLAND’S, AND SWEDEN’S 

ACCESSION TO THE EUROPEAN UNION 189 (1995). 

41 Id. at 182. 

42 Id. at 191. 
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Chamber of Commerce pushed for full membership.43 In 1988, the Austrian Trade Union 

Confederation also showed support because of predicted improved economic development and 

the reduction of prices and increase in employment.44 On July 17, 1989, the Austrian 

government therefore sent a letter to the EU Council asking to join the EEC.45 The Austrian 

government identified a commitment to neutrality, keeping social welfare standards, and 

upholding strict environmental protection laws as conditions for membership. The letter to the 

EU Council therefore included a neutrality clause.46

The EU Commission presented its preliminary opinion on Austria’s accession on August 1, 

1991.47 The Commission decided that no formal accession negotiations should be started before 

the EU internal market was completed and the discussions to establish an economic and 

monetary union and a political union were finished.48 

B. Negotiations 

Formal negotiations were opened on February 1, 1993. Negotiations took place over the course 

of nine separate meeting at the ministerial level, 130 meetings to decide how to implement the 

EU acquis, and 72 meetings of departments in specific fields.49 Negotiations on an important 

number of chapters of the acquis were facilitated by the existence of the FTA between the EU 

and Austria and the EEA Agreement between the EFTA countries and the EU, whereby Austria 

was already committed to take over in its national legislation most of the EU acquis. The 

negotiations were concluded on April 12, 1994. 

With regard to neutrality, Austria and the other countries applying for membership confirmed in 

a joint declaration, which was added to the accession treaty, that they would accept the EU 

acquis, that they would be ready and able to fully participate in the Common Foreign and 

Defense Policy, and that they would amend their legal rules on neutrality to make them 

compatible with the EU acquis.50

 

43 Id. at 191, 192. 

44 Id. at 193, 194. 

45 Brief nach Brüssel [Letter to Brussels], from Alois Mock, Austrian Foreign Minister, to Roland Dumas, President 

of the EC Council of Ministers (July 17, 1989), https://www.parlament.gv.at/ZUSD/PDF/Brief_Bruessel.pdf, 

archived at http://perma.cc/9R8Z-8LY8. 

46 LUIF, supra note 40, at 196. 

47 Commission Opinion on Austria’s Application for Membership, SEC (1991) 1590 final (Aug. 1, 1991), BULLETIN 

OF THE EUROPEAN COMMUNITIES 4/1992. 

48 Id. 

49 Republik Österreich Parlament [Republic of Austria Parliament], Chronologie der Beziehungen ÖsterreichEWG/EU. Vom Antrag auf Aufnahme zum formellen Abschluss der Beitrittsverhandlungen [Chronology of the 

Relationship Austria - EEC/EU. From the Application to Join to the Formal Conclusion of Accession Negotiations], 

https://www.parlament.gv.at/PERK/PE/EU/EUErweiterung/ChronologieBeziehungenAT-EU/index.shtml, archived 

at http://perma.cc/3UMM-RH3U. 

50 Treaty between the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the 

Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of 

Luxembourg, the Kingdom of the Netherlands, the Portuguese Republic, the United Kingdom of Great Britain and 
Trade Implications of Brexit: Austria 

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Austria was allowed to maintain its stricter environmental rules for a transitional period of four 

years. The EU agreed to review the relevant directives on the environment during that time and 

eventually adjust them. Furthermore, the EU promised to conclude free trade agreements with 

the Baltic states so that the Nordic countries that applied at the same time as Austria could 

maintain free trade with them.51 

At the ministerial meeting that took place from February 26 to March 1, 1994, the remaining 

topics, in particular agriculture, were discussed. Austria preferred longer transitional periods, 

whereas the EU insisted on an immediate acceptance of the rules of the Common Agricultural 

Policy. As a compromise, Austria and the other new members would be allowed to grant 

transitional and degressive national aid to producers of basic agricultural products over the 

course of the next five years.52

Transit of heavy goods by road through Austria was another important topic for Austria during 

the negotiations. The final agreement built on the 1992 bilateral agreement between the EEC 

and Austria.53 The parties agreed that the eco points system would be used for another nine 

years and that pollution from heavy goods vehicles would be reduced by 60%.54 Austria’s 

bargaining position to limit the normally unrestricted right of passage through member states was 

strengthened by the fact that Switzerland had voted in a referendum in 1994 to adopt legislation 

to prohibit any transit of heavy goods vehicles by road within the next ten years.55

C. Approval of the Application and Accession Treaty 

On April 19, 1994, the EU Commission delivered a favorable opinion on the question of 

Austria’s accession to the EEC.56 The EU Parliament consented to the accession request on May 

4, 1994.57 The EU Council decided on May 16, 1994 to accept the application.58 

 Northern Ireland (Member States of the European Union) and the Kingdom of Norway, the Republic of Austria, the 

Republic of Finland, the Kingdom of Sweden, concerning the accession of the Kingdom of Norway, the Republic of 

Austria, the Republic of Finland and the Kingdom of Sweden to the European Union (Accession Treaty), 1994 O.J. 

(C 241) 9, 381, Joint Declaration on Common Foreign and Security Policy, http://eur-lex.europa.eu/resource.html 

?uri=cellar:6a09c1b5-b835-42e7-9901-0c33354bf77b.0008.03/DOC_1&format=PDF, archived at http://perma.cc/ 

EM5D-GTNN. 

51 LUIF, supra note 40, at 311. 

52 Accession Treaty, supra note 50, art. 138. 

53 See supra note 39. The 1992 agreement covered the eco points system of transit licenses. 

54 Accession Treaty, supra note 50, art. 11. 

55 LUIF, supra note 40, at 313; Bundesratsbeschluss über das Ergebnis der Volksabstimmung vom 20. Februar 1994 

[Federal Council Decision on the Result of the Referendum of Feb. 20, 1994], 1994 BBL. II at 696, https://www. 

amtsdruckschriften.bar.admin.ch/viewOrigDoc.do?id=10053008, archived at http://perma.cc/74U4-F54S; 

Schweizerische Bundeskanzlei [Swiss Federal Chancellery], Eidgenössische Volksinitiative 'zum Schutze des 

Alpengebietes vor dem Transitverkehr [Referendum to Protect the Alpine Passes from Transit Transport], https:// 

www.admin.ch/ch/d/pore/vi/vis204t.html, archived at http://perma.cc/ZJF6-2N89. 

56 Commission Opinion of 19 April 1994 on the Applications for Accession to the European Union by the Republic 

of Austria, the Kingdom of Sweden, the Republic of Finland and the Kingdom of Norway, 1994 O.J. (C 241) 3, 

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOC_1994_241_R_0003_01&from=EN, archived at

http://perma.cc/TN2A-8C83. 
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Subsequently, the Austrian parliament, which consists of the National Council (Nationalrat) and 

the Federal Council (Bundesrat), approved the Austrian Federal Constitutional Act on the 

Accession of Austria to the European Union.59 The Act authorized the government to sign the 

accession treaty. On June 12, 1994, the Austrian people approved the accession to the EEC in a 

referendum with 66.6% voting in favor.60 The accession treaty between the EU Member States 

and Austria was signed on June 24, 1994.61 The Austrian parliament ratified the accession treaty 

in November 1994. It entered into force on January 1, 1995 after ratification by all EU Member 

States as provided in article 2, paragraph 2 of the treaty. 

 57 European Parliament Legislative Resolution of 4 May 1994 on the Application by the Republic of Austria to 

Become a Member of the European Union, 1994 O.J. (C 241) 5, http://eur-lex.europa.eu/legal-content/EN/TXT 

/PDF/?uri=OJ:JOC_1994_241_R_0005_01&from=EN, archived at http://perma.cc/3QFW-GX6X. 

58 Decision of the Council of the European Union of 16 May 1994 on the admission of the Kingdom of Norway, the 

Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union, 1994 O.J. (C 241) 

8, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOC_1994_241_R_0008_01&from=EN, archived at 

http://perma.cc/FT9P-BMPW. 

59 Bundesverfassungsgesetz über den Beitritt Österreichs zur Europäischen Union [Federal Constitutional Act on the 

Accession of Austria to the European Union], BGBL. No. 744/1994, https://www.ris.bka.gv.at/GeltendeFassung/ 

Bundesnormen/10001317/Beitritt Österreichs zur Europäischen Union, Fassung vom 17.04.2017.pdf, archived at

http://perma.cc/ZEB6-ZUFJ, English translation available at https://www.ris.bka.gv.at/Dokumente/Erv/ERV_1994_ 

744/ERV_1994_744.pdf, archived at http://perma.cc/K39E-82RS. 

60 Kundmachung der Bundesregierung über das Ergebnis der Volksabstimmung vom 12. Juni 1994 [Announcement 

from the Federal Government of the Result of the Referendum of June 12, 1994], BGBL. No. 735/1994, https:// 

www.ris.bka.gv.at/Dokumente/BgblPdf/1994_735_0/1994_735_0.pdf, archived at http://perma.cc/JK3E-9EKW. 

61 Accession Treaty, supra note 50. 
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Greenland 

Elin Hofverberg 

Foreign Law Research Consultant

SUMMARY In 1972, when Greenland had the status equal to that of a Danish county, Denmark voted 

in favor of acceding to the European Economic Community (EEC) in a 1972 national 

referendum. When Greenland attained home-rule status and greater authority over its 

sovereignty in 1979, it held a national referendum in which it voted to leave the EEC. 

Greenland then became an Overseas Country and Territory in 1985 when it left the EEC. 

Post-departure, Greenland needed to renegotiate its fisheries agreement with the EEC, 

ultimately providing EEC Member States with the same access to Greenland waters as 

they had while Greenland was part of the EEC, but also giving Greenland the ability to 

renegotiate the agreement’s terms every five years, with tariffs and quotas renegotiated on 

an annual basis. Today Greenland and the EU have a sustainable development agreement 

providing Greenland with some €233.6 million in aid over a four-year period. Greenland 

and the EU still have a fisheries agreement valid for six years at a time, with quotas 

renegotiated annually. 

I. Background

Located east of the North American continent, Greenland is the world’s largest island.1

 Native 

Inuit, who are Danish citizens, account for 88%2 of the island’s total population of 55,847 (as 

of 2016).3 

Greenland has been associated with Denmark since Icelanders colonized Greenland circa 

1000 AD.4

 However, prior to 1721 when Greenland was recolonized under Pastor Hans Egede, 

Greenlanders retained a great deal of autonomy and were largely governed separately from the 

Danish-Norwegian Kingdom.5

 Denmark established a trade monopoly with Greenland in 1776.6 

 

1

 Greenland, EUROPEAN COMMISSION, http://ec.europa.eu/europeaid/countries/greenland_en (last visited Apr. 21, 

2016), archived at https://perma.cc/29E2-UMVF. 

2 Id. 

3

 STATISTICS GREENLAND, GREENLAND IN FIGURES 2016, Figure from January 2016, at 9 (2016), 

http://naalakkersuisut.gl/~/media/Nanoq/Files/Attached Files/Engelske-tekster/Publications/Greenland in Figures 

2016.pdf, archived at https://perma.cc/374T-DB8H. 

4

 The first person to colonize Greenland was an Icelandic outcast. Grønland, AARHUS UNIVERSITET, 

http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/groenland/ (last updated Feb. 13, 2017), archived at 

https://perma.cc/D8MY-ZNR8. 

5

 NATALIA LOUKACHEVA, THE ARCTIC PROMISE: LEGAL AND POLITICAL AUTONOMY OF GREENLAND AND NUNAVUT 

17–18 (2007). 

6

 Axel Kjær Sørensen, Den Kongelige Grønlandske Handel i Den Store Danske, GYLDENDAL, http://denstoredanske. 

dk/index.php?sideId=109053 (last visited Apr. 18, 2017), archived at https://perma.cc/3RZF-EC7A. 
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In more recent years, Greenland enjoyed a status equal to that of a Danish county beginning in 

1953,7

 achieved home rule in 1979,8 and since 2009 has had self-governance.9 

II. Greenland’s Relationship with the EEC 

In October of 1972, Denmark held a national referendum on whether to join the European 

Economic Community (EEC).10 The national vote was 63.3% in favor of joining, whereas 70% 

of Greenlanders voted against joining.11 The main reason for the Greenlandic opposition is said 

to have been fear of losing sovereignty and control over fishing rights.12 The fact that Greenland 

became part of the EEC despite a majority of its voters opposing it has been credited with 

sparking the independence movement that led to the Home Rule Act of 1979.13 The Home Rule 

Act shifted Greenland from an entity with the legal status of a Danish county14 to a territory with 

local control over many domestic matters. As a result of changes created by home rule, 

Denmark issued special rules on fisheries in Greenland,15 giving Greenland rights different from 

 

7

 DANMARKS RIGES GRUNDLOV (GRUNDLOVEN) [DANISH CONSTITUTION], LOV nr 169 af 05/06/1953, 

https://www.retsinformation.dk/forms/r0710.aspx?id=45902, archived at https://perma.cc/5CBR-5SCE. This 

Constitution made Greenland into a Danish county, not a colony. 

8

 LOV OM GRØNLANDS HJEMMESTYRE [ACT ON GREENLANDS HOME RULE], LOV nr 577 af 29/11/1978 (no longer in 

force), https://www.retsinformation.dk/Forms/R0710.aspx?id=168699, archived at https://perma.cc/U7EB-FDNM. 

9 LOV OM GRØNLANDS SELVSTYRE [ACT ON GREENLAND’S SELF-GOVERNANCE], LOV nr 473 af 12/06/2009, 

https://www.retsinformation.dk/forms/r0710.aspx?id=125052, archived at https://perma.cc/E6YV-KKXW, 

unofficial English translation available on the Greenlandic Parliament website, at http://naalakkersuisut.gl/~/ 

media/Nanoq/Files/Attached Files/Engelske-tekster/Act on Greenland.pdf, archived at https://perma.cc/GNJ8-E72R. 

10 Folkeafstemninger, DANMARKS STATISTIK, http://www.dst.dk/da/Statistik/emner/befolkning-ogvalg/valg/folkeafstemninger (last visited Apr. 18, 2017), archived at https://perma.cc/LH49-WLHQ. 

11 Grønland, AARHUS UNIVERSITET, supra note 4; Danmarks medlemskab af EF og EU, AARHUS UNIVERSITET, 

http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/danmarks-medlemskab-af-ef-og-eu/ (last visited Apr. 

18, 2017), archived at https://perma.cc/G24E-R79A. 

12 United in Diversity–A View from Greenland, BLOG ACTIVE.EU: HISTORY AND POLICY (May 3, 2016), 

http://historyandpolicy.blogactiv.eu/2016/05/03/united-in-diversity-a-view-from-greenland/, archived at

https://perma.cc/EHD9-T8E8. 

13 Kurt Kristensen, 40-årsdagen for Grønlands nej til EF, SERMITSIAQ, http://sermitsiaq.ag/node/136959, archived

at https://perma.cc/manage/create; see also LOUKACHEVA, supra note 5, at 30. Greenland’s experience stands in 

contrast to that of the Faroe Islands, which at the time of Denmark’s accession to the EEC had already acquired 

home rule and could decide to stay outside of the EEC. LOV OM DANMARKS TILTRÆDELSE AF DE EUROPÆISKE 

FÆLLESSKABER (TILTRÆDELSESLOVEN) [ACT ON DENMARK’S ASSESSION T THE EUROPEAN ECONOMIC COMMUNITY] 

(* 1) (* 2), art. 8, LOV nr 447 af 11/10/1972, https://www.retsinformation.dk/forms/r0710.aspx?id=72060, archived 

at https://perma.cc/AJ4N-DJGS. 

14 Kevin Mason, European Communities Commission–Greenland–EC Commission Draft Approves Withdrawal of 

Greenland from the European Community and Proposes Terms for Economic Reassociation, 13 GA. J. INT’L &

COMP. L. 865, 868 n.24, http://digitalcommons.law.uga.edu/cgi/viewcontent.cgi?article=1898&context=gjicl, 

archived at https://perma.cc/U74R-UXKP (stating that “Rather than being, as it appears on its face, a case of a 

Member States’ former colony now independent and seeking to leave the Community, it is legally and theoretically 

as though a ‘county’ of Denmark were attempting to secede from the EC, with Copenhagen’s blessing.”). 

15 BEKENDTGØRELSE OM FISKERITERRITORIET VED GRØNLAND [ORDINANCE ON THE FISHING TERRITORY OUTSIDE 

GREENLAND], BEK NR 176 AF 14/05/1980 (no longer in force), https://www.retsinformation.dk/Forms/R0710. 

aspx?id=83764, archived at https://perma.cc/CM5Z-MHKR. 
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those contained in the Danish Fisheries Act.16 In addition to the special rules on fisheries, the 

Home Rule Act also provided Greenland with autonomy over issues such as taxes,17 hunting,18

and social affairs.19 In total, the law allowed for seventeen different areas to be handled by the 

Home Rule Government, provided that the Home Rule Body (parliament equivalent) first voted 

to gain control over these areas.20

Following the adoption of greater independence through the Home Rule Act, Greenlanders held 

a national referendum on EEC membership.21 On February 23, 1983, with 53% in favor, 

Greenland voted to leave the EEC.22 After negotiations, it formally withdrew from the EEC in 

1985.23 The withdrawal was completed through the adoption of the 1985 Treaty between 

Greenland, Denmark and the European Communities.24 

III. Greenlandic Withdrawal Negotiations 

Negotiations of the Treaty between Greenland, Denmark, and the EEC took place during the 

years 1982 to 1984.25 The negotiations had several phases, starting with the official request for 

withdrawal by Denmark on behalf of Greenland on May 19, 1982.26 The Greenlandic Home 

Rule Minister for Social Affairs Moses Olsen argued that 

our full membership of the European Community as a European Region is inadequate 

and unworkable along with our self-determination established through our Home Rule. 

Our climate norms, culture, ethnicity, social structure, economic and industrial pattern, 

infrastructure and basis for existence are so different from Europe that we can never 

equate with the European countries or regions.27 

 

16 Id.; compare LOV OM DANMARKS RIGES FISKERITERRITORIUM LOV [ACT ON DANISH REALM’S FISHING 

TERRITORY] nr 597 af 17/12/1976, https://www.retsinformation.dk/Forms/R0710.aspx?id=83767, archived at 

https://perma.cc/W26W-GXGP.

17 Bilag 1 to Hjemmestyreloven [Addendum 1 to the Home Rule Act], item 3, https://www.retsinformation. 

dk/Forms/R0710.aspx?id=168699, archived at https://perma.cc/UZB9-J5BX. 

18 Id. item 5. 

19 Id. item 9. 

20 HOME RULE ACT § 4. 

21 Exercising their right to self-governance as specified in Addendum 1, item 1 to the Home Rule Act, supra note 17. 

22 Danish Government Memorandum of 19 May 1982, in Commission of the European Communities, Status of 

Greenland [hereinafter Commission Report] (Feb. 22, 1983), at 5, BULLETIN OF THE EUROPEAN COMMUNITIES SUPP. 

1/833, http://aei.pitt.edu/5173/1/5173.pdf, archived at https://perma.cc/8LPA-5CNB. 

23 Treaty Amending, with Regard to Greenland, the Treaties Establishing the European Communities, 1985 O.J. 

(L 29) 1, http://naalakkersuisut.gl/~/media/Nanoq/Files/Attached Files/Bruxelles/EU and Greenland/The European 

Union and Greenland/Greenland Treaty eng.pdf, archived at https://perma.cc/Z6P7-6WBX. 

24 Id. 

25 The Greenland Treaty of 1985, NAALAKKERSUISUT [GREENLANDIC PARLIAMENT], http://naalakkersuisut.gl/en/ 

Naalakkersuisut/Greenland-Representation-to-the-EU/European-Union-and-Greenland/The-Greenland-Treaty-of1985 (last visited Apr. 21, 2017), archived at https://perma.cc/M8J7-J7YQ. 

26 Danish Government Memorandum of 19 May 1982, supra note 22, at 5. 

27 As cited in LOUKACHEVA, supra note 5, at 115. 
Trade Implications of Brexit: Greenland 

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The Danish government initially only proposed that Greenland be withdrawn from the 

geographical scope of the EEC, European Coal and Steel Community (ECSC), and European 

Atomic Energy Community (EAEC) treaties.28 The European Communities responded on May 

of 1982 and issued a draft opinion on the withdrawal and its terms.29 The Commission 

considered several aspects that were unique to Greenland, including its geographic location, its 

small population, its small economy, and its native population.30 

At the time of withdrawal, Greenland was receiving substantial aid in the form of infrastructure 

aid and social projects from the EEC,31 as it was “considered a priority target for various types of 

assistance.”32 It actually received nine times the average amount of aid received by other EEC 

Members and its aid was not capped.33 Greenland had also received some European Currency 

Unit (ECU) 52.2 million (about US$56 million at current rates)34 in loans from the European 

Investment Bank.35 

During Greenland’s EEC membership years the EEC countries had received a considerable 

increase in access to the Greenlandic fishing industry, at the expense of access by non-EEC 

members.36 The exports to the EEC amounted to 80% of Greenland’s total exports.37

Issues for discussion during withdrawal negotiations thus centered on Greenland’s benefits, 

access to Greenland’s fishing industry, and vested rights of Community workers in Greenland.38 

In addition, relationships between the EEC and nonmembers were affected as treaties had been 

negotiated between Canada, Norway, and the Faroe Islands that included Norwegian and Faroese 

access to Greenlandic waters.39 Thus, the final proposal from the Commission was that 

Greenland be awarded Overseas Country and Territory (OCT) status for all areas except its 

fishing industry.40 This was considered a flexible arrangement at the time.41

 

28 Danish Government Memorandum of 19 May 1982, supra note 22, at 6–7. 

29 Id. For background, see Mason, supra note 14. 

30 Danish Government Memorandum of 19 May 1982, supra note 22, at 10. 

31 LOUKACHEVA, supra note 5, at 116, 195 n.56. 

32 Danish Government Memorandum of 19 May 1982, supra note 22, at 10. The aid was received from the 

European Social Fund (ESF) and European Regional Development Fund (ERDF). Commission Report, supra note 

22, at 16. 

33 Commission Report, supra note 22, at 16. 

34 The euro did not come into existence until 1999. 

35 Commission Report, supra note 22, at 17. 

36 Id. at 18. 

37 Id. 

38 Id. at 16–21. 

39 Id. at 23. 

40 Id. at 38, 42. 

41 Mason, supra note 14, at 874. 
Trade Implications of Brexit: Greenland 

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Through the negotiation process, Greenland was able to negotiate and set its own rules regarding 

fisheries, specifically quotas, through a fisheries agreement with Denmark and the European 

Communities, in which EEC Member States would also pay to keep their access to Greenlandic 

waters.42 In the final text, the Greenlandic fishing industry was recognized as an essential 

economic activity.43 As such, the agreement did not prevent Greenland from claiming the 

exclusion paragraph of GATT 1947, a paragraph which would allow Greenland to set up 

temporary prohibitions and restrictions to protect these interests.44 

Greenland’s withdrawal was resolved by the creation of a Treaty between Greenland and the 

EEC.45 The Commission granted formal withdrawal approval on February 22, 1983.46 

Withdrawal was finalized as of January 1, 1985, when Greenland became an OCT.47 As an 

OCT, Greenland had to ensure that EEC Member States were afforded at least as favorable 

treatment as that afforded to nonmember countries.48 Because Greenland is an OCT member, it 

is also represented in Brussels.49 

Once finalized, the protocol to the EEC-Denmark-Greenland Fisheries Agreement provided for 

payment in return for EEC fishing rights outside of Greenland.50 These rights were not 

substantially different from the rights that EEC Members enjoyed prior to Greenland’s 

withdrawal from the EEC.51 As an OCT, Greenland would have been outside the free trade 

 

42 Agreement on Fisheries between the European Economic Community, on the One Hand, and the Government of 

Denmark and the Local Government of Greenland, on the Other (1985 Agreement on Fisheries) arts. 2(1), 6 & 8, 

1985 O.J. (L 29) 9, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:21985A0201(01)&from=EN, 

archived at https://perma.cc/A8LC-RE8C. Article 2(1) of the Agreement provides the right to fish, article 6 

establishes Greenland’s right to be paid, and article 8 addresses the right of EEC Members to have special priority 

and get additional quotas (supplementary catch possibilities). 

43 Id. 

44 General Agreement on Tariffs and Trade (GATT 1947), Oct. 30, 1947, 55 U.N.T.S. 194, art. XI(2)(a), 

https://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm, archived at https://perma.cc/283T-BA7Z. At the 

time, Greenland was part of Denmark and therefore subject to the General Agreement on Tariffs and Trade. 

45 The Greenland Treaty of 1985, NAALAKKERSUISUT, supra note 25. 

46 Commission Report, supra note 22, at 12. 

47 Protocol on Special Arrangements for Greenland to the Treaty Amending, with regard to Greenland, the Treaties 

Establishing the European Communities art. 3, 1985 O.J. (L 29) 1; see also Overseas Countries and Territories 

(OCTs), EUROPEAN COMMISSION, http://ec.europa.eu/europeaid/regions/octs_en (last visited Apr. 17, 2017), 

archived at https://perma.cc/G7ED-C2LM. 

48 Danish Government Memorandum of 19 May 1982, supra note 22, at 20. 

49 Greenland Representation to the EU, Brussels, NAALAKKERSUISUT, http://naalakkersuisut.gl/en/Naalakker 

suisut/Greenland-Representation-to-the-EU (last visited Apr. 21, 2017), archived at https://perma.cc/3FCB-C786. 

50 Agreement on Fisheries, supra note 42, art. 6. Payment amounted to ECU 26.5 million, about US$28.4 million. 

Protocol on the Conditions Relating to Fishing Between the European Economic Community, on the One Hand, and 

the Government of Denmark and the Local Government of Greenland, on the Other [Protocol to Agreement on 

Fisheries] art. 3(1), 1985 O.J. (L 29) 14, http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.1985. 

029.01.0014.01.ENG&toc=OJ:L:1985:029:TOC, archived at https://perma.cc/W6GH-WUHK. 

51 Compare Danish Government Memorandum of 19 May 1982, supra note 22, with Agreement on Fisheries, supra

note 42. 
Trade Implications of Brexit: Greenland 

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zone, had it not been for the special conditions on Greenlandic OCT status in relation 

to fisheries.52

IV. Greenland’s Current Self-Governance and Relationship with the EU

The Greenlandic Home Rule Act was replaced with the Self-Governance Act in 2009,53

following a national referendum on self-governance held on November 25, 2008.54 More than 

75% of Greenlanders voted in favor of it.55 Under the Self-Governance Act, Greenland assumed 

greater independence and now has additional fields of legislative and executive power, including 

over mineral resource activities.56 A guide on interpreting the Self-Governance Act has 

been issued.57

The fisheries agreement between Greenland, Denmark, and what is now the EU has changed 

over the years since the EU’s formal creation in 1993.58 Greenland still maintains both fishing 

and cooperation agreements with the EU.59 These agreements are renegotiated by Greenland, 

Denmark, and the EU every six years.60 The quotas on fisheries are renegotiated every year.61 

The current protocol is in place from January 1, 2016, to December 31, 2020.62 The first 

 

52 Mason, supra note 14, at 873. 

53 ACT ON GREENLAND’S SELF-GOVERNANCE, supra note 9, http://naalakkersuisut.gl/~/media/Nanoq/Files/ 

Attached%20Files/Engelske-tekster/Act%20on%20Greenland.pdf, archived at https://perma.cc/GNJ8-E72R. 

54 Selvstyrets indførelse, NAALAKKERSUISUT, http://Naalakkersuisut.gl/da/Naalakkersuisut/Selvstyre (last visited 

Apr. 18, 2017), archived at https://perma.cc/TB34-RUDT; Den grønlandske selvstyreordning, STATSMINISTERIET, 

http://www.stm.dk/_a_2566.html (last visited Apr. 17, 2018), archived at https://perma.cc/V6PM-UNE4. 

55 Selvstyrets indførelse, NAALAKKERSUISUT, supra note 54. 

56 ACT ON GREENLAND’S SELF-GOVERNANCE § 7, supra note 9. 

57 Vejledning om ministeriers behandling af sager vedrørende Grønland, VEJ nr 58 af 02/07/2012, 

https://www.retsinformation.dk/Forms/R0710.aspx?id=142582, archived at https://perma.cc/J2GS-7RED. 

58 See Joint Declaration by the European Union, on the One Hand, and the Government of Greenland and the 

Government of Denmark, on the Other, on Relations between the European Union and Greenland, Mar. 19, 2015, 

https://ec.europa.eu/europeaid/sites/devco/files/signed-joint-declaration-eu-greenland-denmark_en.pdf, archived at

https://perma.cc/NUL5-5KDN. 

59 E.g., Fisheries Partnership Agreement between the European Community, on the One Hand, and the Government 

of Denmark and the Home Rule Government of Greenland, on the Other Hand, 2007 O.J. (L 172) 4, 

http://naalakkersuisut.gl/~/media/Nanoq/Files/Attached%20Files/Bruxelles/EU%20and%20Greenland/Fisheries/4%

20Fisheries%20Agreement.pdf, archived at https://perma.cc/8C9V-24JS; Protocol Setting Out the Fishing 

Opportunities and Financial Contribution Provided for in the Fisheries Partnership Agreement between the European 

Community on the One Hand, and the Government of Denmark and the Home Rule Government of Greenland, on 

the Other Hand, 2012 O.J. (L 293) 5, http://naalakkersuisut.gl/~/media/Nanoq/Files/Attached%20Files/Bruxelles/ 

EU%20and%20Greenland/Fisheries/4%20Protocol%2020132015%20ENG.pdf, archived at https://perma.cc/6KZU99EL; Joint Declaration, supra note 58. 

60 Fisheries Partnership Agreement, supra note 59, art. 12. 

61 Protocol Setting Out the Fishing Opportunities, supra note 59, art. 1.2. 

62 Grønland: Fiskeripartnerskabsaftale, EUROPA-KOMMISSIONEN, FISKERI, https://ec.europa.eu/fisheries/cfp/ 

international/agreements/greenland_da (in Danish; last visited Apr. 17, 2017), archived at https://perma.cc/TQ6DCL4C; Rådets Afgørelse (EU) 2015/2103 af 16. november 2015 om undertegnelse på Den Europæiske Unions 

vegne og midlertidig anvendelse af protokollen om fastsættelse af de fiskerimuligheder og den finansielle 
Trade Implications of Brexit: Greenland 

The Law Library of Congress 18

agreement was in force for ten years from 1985 to 1995.63 Greenland negotiates its fisheries 

quotas by itself, but may request support from Denmark, as seen in the Danish role in 

mackerel negotiations.64 

The EU has budgeted some €217.8 million (about US$233.6 million) in aid to Greenland for the 

period 2014 to 2020.65

 modydelse, der er omhandlet i fiskeripartnerskabsaftalen mellem Det Europæiske Fællesskab på den ene side og den 

danske regering og det grønlandske landsstyre på den anden side, 2015 O.J. (L 305) 1, http://eur-lex.europa.eu/legalcontent/da/ALL/?uri=CELEX:32015D2103&qid=1462893502419 (in Danish), archived at https://perma.cc/D4DV6SAV; Council Decision (EU) 2015/2103 of 16 November 2015, on the Signing on Behalf of the European Union 

and Provisional Application of the Protocol Setting Out the Fishing Opportunities and Financial Contribution 

Provided For in the Fisheries Partnership Agreement between the European Community, on the One Hand, and the 

Danish Government and Greenlandic Government, on the Other, 2015 O.J. (L 305) 1, http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32015D2103&from=da, archived at https://perma.cc/2BZQ-WH24; Protocol 

Setting Out the Fishing Opportunities and the Financial Contribution Provided For by the Fisheries Partnership 

Agreement between the European Community on the One Hand, and the Government of Denmark and the Home 

Rule Government of Greenland, on the Other Hand, 2015 O.J. (L 305) 3, http://eur-lex.europa.eu/legalcontent/EN/TXT/HTML/?uri=CELEX:22015A1121(01)&from=DA, archived at https://perma.cc/9VPE-QBFB. 

63 1985 Agreement on Fisheries, supra note 42, art. 15. 

64 Grønland kan selv forhandle makrelkvote, FISKERITIDENDE.DK (Apr. 18, 2014), http://fiskeritidende. 

dk/groenland-kan-selv-forhandle-makrelkvote/, archived at https://perma.cc/VH7C-MZU8; Rosa Thorsen, 

Grønland kan selv forhandle makrel, SERMITSIAQ (Apr. 16, 2014), http://sermitsiaq.ag/groenland-kan-forhandlemakrel, archived at https://perma.cc/V4MK-Z4YC. 

65 Programming Document for Sustainable Development of Greenland 2014–2020, https://ec.europa.eu/ 

europeaid/sites/devco/files/signed_programming_document_for_sustainable_development_of_greenland_2014-

2020_colour.pdf (copy on file with author).