Former US President Donald Trump escalated geopolitical tensions by calling Greenland a “vital national security asset” in a press conference and even hinting at military action. His statements led to speculation that the US might be planning to annex Greenland.
Trump administration’s perspective on Greenland
Recently, Trump’s son Donald Trump Jr. visited Greenland in what was described as a “personal visit.” However, this is being seen as an attempt to seek the opinion of the people of Greenland or to start an informal conversation. But local representatives of Greenland refused to meet him and insisted on their sovereignty.
Greenland: Why is it important for America?
Greenland, the world’s largest island, is of utmost importance to the US because of its strategic location and natural resources:
- Military importance: It is located between North America and Europe and plays an important role in protecting US Arctic military bases, such as Thule Air Base.
- Mineral and Energy Resources: Greenland has large reserves of rare minerals, oil, and natural gas, which could help meet America’s energy needs and reduce dependence on China.
- New trade routes: Climate change in the Arctic region is opening up new maritime trade routes, which could make trade between Europe and Asia faster and cheaper.
Current economic and political situation in Greenland
Currently, Greenland’s economy depends mainly on fishing and economic aid from Denmark. But Greenland’s leaders are striving toward greater autonomy and eventual independence.
Greenland’s Prime Minister Mute Egede called Trump’s comments “hysteria” and said,
“Greenland’s future lies in the hands of its own people.”
What is the estimated price of Greenland?
Economic analysis on the prospects of buying Greenland:
- In 1946, US President Harry Truman offered to buy Greenland for $100 million.
- Today, Greenland’s estimated value ranges from hundreds of billions of dollars to $1.5 trillion.
- Per capita compensation: Greenland’s 57,000 residents are expected to receive compensation ranging from $100,000 to $1 million per person, raising the total cost to $5.7 billion to $57 billion.
- According to the Financial Times, Greenland could be worth an estimated $1.1 trillion due to its rare mineral resources.
- The Daily Mail report puts it at $230 million, but this estimate is based on old valuations.
Diplomatic and legal challenges
Plans to purchase or annex Greenland are beset by not only economic, but also diplomatic and legal obstacles:
- Denmark and Greenland oppose: Both Denmark and Greenland have vehemently rejected any proposal to sell Greenland.
- International law: Any attempt at forcible annexation could worsen relations between the US and its allies, especially NATO.
- Global power struggle: Trump’s interest in Greenland has intensified competition between the US, Russia, and China in the Arctic region.
Impact of Trump’s statements
Donald Trump’s harsh rhetoric and aggressive attitude towards Greenland is affecting not only US-Denmark relations but also the geopolitical balance in the Arctic. This situation could lead to a protracted international conflict, in which military and economic interests would clash.
