Svalbard Treaty Raises Questions in the Modern World

A Century-Old Treaty Sparks Controversy

A century-old treaty is sparking controversy over its relevance and application to Norway’s Svalbard archipelago. The Svalbard Treaty, signed in 1920, granted Norway sovereignty over the islands while allowing other countries to exploit their natural resources.

However, as the world’s attention turns to the Arctic, questions are being raised about whether the treaty’s provisions still apply today. Two YouTube videos have sparked debate on the topic, highlighting the challenges of reconciling historical agreements with modern-day realities.

Uncertainty Surrounds Treaty Provisions

The treaty’s Articles 1-3 preserve the original parties’ rights to exploit Svalbard’s natural resources in exchange for recognizing Norway’s sovereignty. However, there is uncertainty over whether these provisions apply beyond the archipelago’s territorial waters, which extend 12 nautical miles from its baselines.

• Norway claims an exclusive economic zone (EEZ) extending up to 200 nautical miles from its mainland coast, but not in Svalbard.
• Instead, it established a non-discriminatory fishery protection zone (FPZ) off Svalbard’s coast in 1977.
• This has led to differing opinions on whether the treaty applies to Svalbard’s continental shelf and FPZ.

Taxation Disputes

Svalbard enjoys fiscal autonomy, with lower income taxes than mainland Norway. However, this has resulted in exclusion from Norway’s international tax agreements, including double taxation agreements and automatic exchange of financial account information.

• The OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters allows signatory states to exclude territories from the convention, which Norway has done for Svalbard.
• Norway’s Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information also does not apply to Svalbard, meaning there is no Common Reporting Standard.

Conclusion

The Svalbard Treaty remains a crucial agreement in international law, but its provisions are being tested by the modern world. As global attention turns to the Arctic, it is essential that countries clarify the treaty’s application and implications for taxation, environmental, and immigration laws.

Watch these two YouTube videos to learn more about the challenges facing the Svalbard Treaty:

• “The Svalbard Treaty Explained: Geopolitics in the Arctic”
• “The Future of the Arctic Depends on a 100-Year-Old Treaty”