Could an Arctic agreement revolutionize global trade?

OPINION: An Arctic Free Trade Area with robust, science-based environmental protections could set a far-reaching global precedent.

The World Economic Forum recently calculated a 1 trillion dollar untapped investment potential in one of the planet’s most environmentally vulnerable and critical regions — the Arctic. Increased industry and economic activity historically come at great cost to the environment, and the risk is especially high in the Arctic Circle. While traditional trade agreements tend to neglect environmental regulatory cooperation, an Arctic Free Trade Area, including all eight Arctic Council member countries (Canada, the Kingdom of Denmark — including Greenland and the Faroe Islands, Finland, Iceland, Norway, Russia, Sweden, and the United States), could set a new and revolutionary precedent. Adding science-based environmental regulatory standards to a multilateral agreement that reduces trade barriers could harness economic opportunities in the Arctic while mitigating environmental consequences. In doing so, an Arctic Free Trade Area would also improve global diplomatic relations in a complex political environment.