The territorial dispute between Denmark and Canada over a barren, uninhabited Arctic island ended on Tuesday, when the two countries agreed to share the tiny island.

As part of the deal, a border will be drawn on the 1.3 square kilometer (half a square mile) Hans Island, located between the northwest coast of Greenland – a semi-autonomous Danish territory – and the Canadian Ellesmere Island.

The island has no known valuable mineral resources. The agreement means that Canada now has a land border with Europe.

“This sends a clear signal that border disputes can be resolved… in a pragmatic and peaceful way, in which all sides win,” Danish Foreign Minister Jeppe Kofod said.

He assured that it was “an important signal at this time when there are many wars and troubles in the world”.

In 1973, Canada and Denmark agreed to create a border across the Nares Strait, halfway between Greenland and Canada, but failed to agree on which country would have the sovereignty over Hans Island, about 1,100 kilometers (680 miles) south of the North Pole. In the end, they decided to settle the ownership issue later.

In the years that followed, the turf dispute, which the media dubbed the “whiskey war”, surfaced repeatedly.

In 1984, the Danish Minister for Greenlandic Affairs hoisted a Danish flag on the island, buried a bottle of Danish brandy at the base of the mast and left a note saying, “Welcome to Danish Island”. So the Canadians flew their own flag and left behind a bottle of Canadian brandy. Since then, countries have taken turns raising their flags and dropping bottles of various alcoholic beverages in a kind of battle.

“It’s a win for Canada. It’s a victory for Denmark,” said Canadian Foreign Minister Mélanie Joly.

The foreign ministers also exchanged bottles of whisky.

The agreement will enter into force once the internal procedures of the two countries have been completed.

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Associated Press writer Rob Gillies in Toronto contributed to this report.