Arbitration court to address Faroe Islands’ WTO membership dispute with Denmark

The arbitration court responsible for resolving the dispute between the Faroe Islands and Denmark regarding the WTO will focus solely on the issue of World Trade Organization membership, rather than the broader realm of the kingdom’s relationships.

This was stated by Ruth Vang, the Minister of Finance. She acknowledged, however, that the court’s decision could have implications for the Faroe Islands’ standing in relation to other memberships.

For many years, the Faroe Islands have sought independent membership in the WTO, but legal experts in the Danish Ministry of Justice have deemed this pursuit to be unconstitutional.

Now, an arbitration court will address the matter, drawing authority from Article 6 of the Home Rule Act. This represents the first time that Article 6 will be put to the test.

The Danish government will appoint two members to the court, while the Faroese government will also appoint two. Additionally, three members will be selected from the Supreme Court, who will only serve in the event that the other members cannot reach an agreement.