Canada Moves to Assert Arctic Sovereignty as Northwest Passage Becomes Global Flashpoint

For decades, Canada claimed sovereignty over the Northwest Passage. And for decades, that claim existed mostly on paper.

The United States sent ships through the Arctic without asking permission. American submarines surfaced at the North Pole and called it international waters. Washington insisted that the Northwest Passage was a global shipping lane, not Canadian territory. And Ottawa, lacking the infrastructure or enforcement power to push back, could do little more than protest diplomatically.

That era is ending.

This week, Canadian Prime Minister Mark Carney announced a $7 billion investment in Arctic icebreakers, signaling a decisive shift in Canada’s Arctic strategy. The message was direct and unusually blunt: sovereignty is not defined by legal arguments alone. It is defined by control.

And Canada is finally building the capacity to control its Arctic waters.

The Northwest Passage Is No Longer Theoretical

The Northwest Passage is not a single route but a network of waterways threading through Canada’s Arctic archipelago, connecting the Atlantic and Pacific Oceans. For centuries, it was blocked by ice, rendering it economically irrelevant and strategically symbolic at best.

Climate change has altered that reality.

Arctic ice is melting at an accelerating rate. What was once impassable for most of the year is now navigable for longer periods each summer. By the mid-2030s, experts project the passage could be largely ice-free during peak shipping seasons, with year-round navigation possible using icebreaker support.

The economic implications are enormous.

A container ship traveling from Asia to Europe through the Northwest Passage can save up to 7,000 kilometers compared to routes through the Panama or Suez Canals. That means lower fuel costs, faster delivery times, and fewer chokepoints in an era of fragile global supply chains.

Estimates suggest the route could eventually handle 2–5% of global maritime trade, translating into hundreds of billions of dollars annually.

And whoever controls that passage controls access to one of the most valuable emerging trade corridors on Earth.

Why the United States Never Accepted Canada’s Claim

Canada has maintained since the 1940s that the Northwest Passage constitutes internal Canadian waters. Under that interpretation, foreign vessels would require Canadian permission to transit the route, just as they would when entering the St. Lawrence Seaway.

The United States has never accepted that position.

Washington argues the passage qualifies as an international strait under maritime law, granting all nations the right of transit passage without prior authorization. That stance has been consistent across Democratic and Republican administrations.

The disagreement was not hypothetical.

In 1969, the U.S. oil tanker Manhattan transited the Northwest Passage without Canadian permission. In 1985, the American icebreaker Polar Sea did the same. Canada protested, but lacked the capability to stop or regulate the transits.

The reality was simple: Canada claimed sovereignty but could not enforce it.

As a result, the United States, Russia, and increasingly China treated Canada’s Arctic claims as symbolic rather than binding.

Trump Changed the Strategic Equation

That calculation shifted dramatically after Donald Trump returned to power and escalated economic pressure on Canada.

Trump imposed tariffs, openly questioned Canada’s economic independence, and revived rhetoric suggesting Canada should function as an extension of the American economy. While often dismissed as bluster, those moves forced Ottawa to rethink long-standing assumptions about U.S. reliability as a partner.

For the first time in decades, Canada faced a serious incentive to diversify its trade routes, reduce dependence on American infrastructure, and assert control over assets it had previously neglected.

The Arctic suddenly moved from the margins of Canadian policy to the center of it.

Prime Minister Carney’s government responded with the largest Arctic infrastructure commitment in Canadian history.

Turning Legal Claims Into Physical Control

The $7 billion icebreaker investment is only part of a broader strategy.

Canada is expanding deep-water port capacity, upgrading northern airports, building all-weather roads, increasing military presence, and deploying new radar and surveillance systems across the Arctic. The goal is not symbolic sovereignty, but operational dominance.