Categories: Economy

Explainer-Why does Trump need Greenland and will he get it?


By Jacob Gronholt-Pedersen and Louise Rasmussen

COPENHAGEN (Reuters) – U.S. President-elect Donald Trump says he desires to make Greenland part of the USA and doesn’t rule out utilizing army or financial energy to get Denmark at hand over the mineral-rich and strategically necessary island.

“Greenland is an unbelievable place, and the individuals will profit tremendously if, and when, it turns into a part of our Nation,” Trump mentioned in a Fact Social publish on Monday.

“This can be a deal that should occur,” Trump mentioned on Tuesday as his son, Donald Trump Jr., paid a personal go to to Greenland.

Trump first expressed curiosity in shopping for the principally ice-covered island of simply 57,000 individuals from Denmark in 2019 however was rebuffed.

WHY DOES TRUMP WANT GREENLAND?

Greenland, a part of NATO by way of the membership of Denmark, has strategic significance for the U.S. army and for its ballistic missile early-warning system because the shortest route from Europe to North America runs by way of the Arctic island.

The U.S. army maintains a everlasting presence on the Pituffik air base in Greenland’s northwest.

America has expressed curiosity in increasing its army presence, together with inserting radars there to watch the waters between the island, Iceland and Britain, that are a gateway for Russian navy vessels and nuclear submarines.

Greenland is geographically a part of the North American continent, and it is important for the USA to forestall another main powers establishing a foothold on the island, in accordance with Ulrik Pram Gad, a senior researcher and knowledgeable on Greenland on the Danish Institute for Worldwide Research.

The island, whose capital Nuuk is nearer to New York than the Danish capital Copenhagen, boasts mineral, oil and pure fuel wealth, however improvement has been sluggish.

A 2023 survey confirmed that 25 of 34 minerals deemed “essential uncooked supplies” by the European Fee have been present in Greenland. They embrace vital portions of supplies utilized in batteries, comparable to graphite and lithium, and in addition so-called uncommon earth parts utilized in electrical automobiles and wind generators.

Greenland has banned extraction of oil and pure fuel for environmental causes, and improvement of its mining sector has been snarled in crimson tape and opposition from indigenous individuals.

This has saved Greenland’s economic system reliant on fishing, which accounts for over 95% of exports, and annual subsidies from Denmark, which cowl roughly half of the general public funds.

In whole, Denmark spends slightly below $1 billion every year on Greenland. 

WHO OWNS GREENLAND AND COULD TRUMP BUY IT?

Greenland has been a part of Denmark for greater than 600 years however now controls most of its personal home affairs as a semi-sovereign territory beneath the Danish realm.

It turned a proper territory of Denmark in 1953 and is topic to the Danish structure, that means any change to its authorized standing would require a constitutional modification.

In 2009, the island was granted broad self-governing autonomy, together with the fitting to declare independence from Denmark by way of a referendum. 

Greenland Prime Minister Mute Egede, who has stepped up a push for independence, has repeatedly mentioned the island just isn’t on the market and that it’s as much as its individuals to determine their future.

Egede was holding talks in Copenhagen on Wednesday with King Frederik which are more likely to be dominated by Trump’s newest remarks.

In 2019 each Greenland and Denmark rejected Trump’s provide to purchase the island.

When Greenland was nonetheless a colony, the U.S. beneath then-President Harry Truman sought to purchase the island as a strategic asset through the Chilly Battle for $100 million in gold, however Copenhagen declined to promote.

WHAT IF GREENLAND BECOMES INDEPENDENT?

If Greenland turns into impartial, it might select to change into related to the USA. 

Whereas nearly all of Greenlanders need independence, few see full independence as viable given their financial dependence on Denmark, which is a part of the prosperous European Union.

One choice could possibly be to kind a so-called “free affiliation” pact with the USA, much like the standing of Pacific island nations Marshall Islands, Micronesia and Palau. 

“Greenland is speaking about changing into impartial from Denmark, however no Greenlanders need to simply swap to a brand new colonial grasp,” mentioned Ulrik Pram Gad, a senior researcher and knowledgeable on Greenland.

He finds it unlikely Greenland will vote for independence with out making certain the welfare of its inhabitants.

WHAT DOES GREENLAND WANT?

A majority of Greenland’s inhabitants help independence, however are divided over the timing and potential affect on dwelling requirements.

Greenlandic politicians have since 2019 repeatedly mentioned they’re fascinated with strengthening cooperation and commerce with the USA.

Nevertheless, Aaja Chemnitz, a Greenlandic member of the Danish parliament, mentioned the thought of a U.S. takeover must be firmly rejected. “I do not need to be a pawn in Trump’s scorching desires of increasing his empire to incorporate our nation,” she wrote. 

WHAT DOES DENMARK SAY?

The renewed curiosity comes amid heightened tensions between Greenland and Denmark, following revelations of historic misconduct by the previous colonial ruler.

Trump’s 2019 provide to purchase the island was firmly rejected by Denmark, a detailed NATO ally of the USA, and labelled as “absurd” by Prime Minister Mette Frederiksen.

When requested about Trump’s renewed curiosity on Tuesday, Frederiksen mentioned: “We want very shut cooperation with the People.” 

She added: “Then again, I want to encourage everybody to respect that the Greenlanders are a individuals, it’s their nation, and solely Greenland can decide and outline Greenland’s future.”

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