Iqaluit (July 17/06) - On the eve of its seventh birthday, Nunavut got a present from Denmark: an honourary consulate in Iqaluit.

The consulate is a perfect fit for the transatlantic allies of Canada and Denmark, said Danish ambassador to Canada Poul Kristensen.

"What makes the relationship special is that we are neighbours (separated by the few hundred kilometres of the Davis Strait)," he said.

Greenland premier Hans Enoksen said the move is a natural one for the two territories.

"We share the same lifestyle and pressures from the rest of the world," he said through a translator.

Nunavut premier Paul Okalik and Enoksen also signed an agreement to boost trade, particularly in food and infrastructure.

Denmark's honourary consul will be Kenn Harper, a businessman and historian who moved to Nunavut 40 years ago to teach in Qikiqtarjuaq.