Six new observers to Arctic Council
Baku, May 16 (AZERTAC). The Arctic Council agreed yesterday to admit emerging powers China and India as observers, reflecting growing global interest in the trade and energy potential of the planet`s far north.
The organization, which co-ordinates Arctic policy, is gaining clout as sea ice thaws to open up new trade routes and intensify competition for oil and gas - estimated at 15 per cent and 30 per cent respectively of undiscovered reserves.
China has been active in the polar region, becoming one of the biggest mining investors in Greenland and agreeing on a free trade deal with Iceland. Shorter shipping routes across the Arctic Ocean would save its companies time and money.
The council includes the United States, Russia, Canada and Nordic nations. Observer status gives countries the right to listen in on meetings and propose and finance policies.
China, Japan, India, South Korea, Singapore and Italy now have observer status.
The council ruled that the European Union could observe meetings until a final decision on its status was taken. EU members France, Germany, Spain and Britain have observer status.
Diplomats said Canada and other Arctic states objected to an EU ban on imported seal products. Indigenous groups say they depend on the seal trade.
Russia has long been sceptical of letting in the European Union as an observer, arguing it has representation through its members Sweden, Finland and Denmark.
A Chinese shipping firm is planning the country`s first commercial voyage through a shortcut across the Arctic Ocean to the United States and Europe this year, saving time and money. The distance from Shanghai to Hamburg is 2,800 nautical miles shorter via the Arctic than via the Suez Canal.
China has boosted its mining investment in Greenland mainly because of large deposits of rare earths, used in smartphones and green technology.
"The entry of countries like China not only reflects how the Arctic has become a region of global interest, it also shows how the Arctic Council has become the main body of Arctic governance," said Damien Degeorges, founder of the Arctic Policy and Economic Forum.
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