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In a territorial dispute now linked to the global warming problem, Canada criticizes the United States, European Union and even Japan for not recognising its 1986 claim of sovereignty to waters around the Arctic archipelago. The United States insists that these are international waters.
An American ice-breaker went through the archipelago in 1985 causing a diplomatic dispute with Canada, which reaffirmed its claim to the territorial waters. Canada, which is also arguing with Denmark over a small island off Greenland, based its territorial sovereignty on the ice that then linked all of the Arctic islands. But cracks are quickly forming in the claim. If sovereignty of the Northwest passage ever came before a court, Canada could lose its ability to impose navigational rules in the region.
There are huge environmental issues at stake. Canada would be unable to deny passage to any vessel that meets international standards for environmental protection, crew training and safety procedures. The United States argues that all waters between two open seas should be open to all shipping. Lasserre emphasised how the maritime and continental plateau frontier between the United States and Canada has never been formally agreed -- and this will become another looming dispute.
The commercial stakes are also high as the Beaufort Sea, which touches the Yukon in Canada and the US state of Alaska, has huge reserves of oil and natural gas. Experts have highlighted how access to these reserves will become a lot easier as global warming increases.
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http://www.terradaily.com/2005/051201170621.c6kpogek.html