Beyond 'Big Real Estate Deal': Deconstructing Donald Trump's Greenland obsession

Donald Trump has increased his warnings about taking control of Greenland, a territory he has often said should belong to the United States.

Greenland makes up about 25% of the Arctic region's total land area. It is the largest island in the Arctic and plays a significant role in the geography and ecosystem of the region. Its location makes it strategically important because it connects North America, Europe, and the Arctic. 

Here, we look into the reasons behind his interest in this Danish territory.

Why is Donald Trump trying to purchase Greenland?

Trump first heard about the idea of buying Greenland during his first term as president when his friend Ronald Lauder, heir to the Estée Lauder cosmetics company, suggested it to him.

Trump called it a "big real estate deal" and became more interested after learning about Greenland's strategic location and the Arctic's rich natural resources.

He put together a small team to explore options, including a long-term lease similar to a property deal in New York.

At a press conference in Mar-a-Lago,(private residence of Donald Trump in Palm Beach Florida)Trump explained the main reason for wanting Greenland was to help "protecting the free world" (safeguard democratic nations and their interests). He said it was important because he believed China and Russia posed a threat to the region.

Trump has often seen the U.S. as competing for global power with China, which also explains his interest in the Panama Canal.

Which country does Greenland belong to?

Greenland, the largest island in the world that isn’t a continent, is a self-governing territory within the Kingdom of Denmark. It has its own language, flag, and government. However, Denmark is responsible for handling things like money, defense, and international relations.

Norway took control of Greenland in 1261 through an agreement with Norse settlers (Scandinavian people from Norway and Iceland). Later, it became part of the union between Denmark, Norway, and Sweden from 1397 to 1523, until Sweden left the union. Finally, in 1814, the Treaty of Kiel placed Greenland under Denmark's rule.

Greenland stopped being a colony in 1953 when it became part of Denmark under a new Danish constitution, but it still remained within Denmark's territory.

In 1979, the Home Rule Act gave Greenland's government more independence. Later, in 1985, Greenland decided to leave the European Economic Community, which later became the European Union.

In 2009, Greenland was granted self-rule, but it still gets financial support from Denmark every year. People in Greenland are Danish citizens and also have EU citizenship since Greenland is considered an overseas territory of the EU.

EU leaders reacted to Donald Trump's comments about wanting to buy Greenland by firmly warning him against the idea. 

German Chancellor Olaf Scholz stated that using force to change borders is unacceptable.

He said that during his talks with European partners, they seemed confused about some recent statements made by the US.

France’s foreign minister, Jean-Noël Barrot, said that the EU will not allow any country to threaten or attack its borders.

Russia also gave a warning, saying that the Arctic is an area of important national and strategic interest for the country, according to a Kremlin spokesperson.Russia said it wants to keep the Arctic peaceful and stable. They are closely monitoring the situation, which so far has only involved statements, not actions.

What is the worth of it?

Greenland’s main export is fish, but the country also has many untapped resources, including minerals and hydrocarbons. Fish and shrimp account for over 95% of its exports. In 2022, its largest export market was Denmark (49%), followed by China (24%), the UK (6%), and Japan (5%).

Hardly any minerals or oil and gas (hydrocarbons, which are natural fuels like oil and gas) are exported because Greenland banned new oil and gas exploration in 2021.

Officials said drilling for oil would harm the environment too much, even though there are billions of barrels of oil estimated to be along the west coast and under the east coast seabed.

The Greenland government said the ban was put in place to protect nature, support the fishing industry, boost tourism, and focus on sustainable opportunities for the future.Greenland shifted to developing hydropower for energy because of worries about climate change.

In 2021, Greenland’s parliament banned uranium mining and halted plans to develop the Kuannersuit mine (located near the southern town of Narsaq in Greenland). This mine holds one of the largest deposits of rare earth elements in the world (materials used in things like electronics and renewable energy).

What is the history of the relationship between the United States and Greenland?

Greenland is located in North America, which has led the United States to try to buy it several times in the past.

In 1867, William Seward, the U.S. secretary of state who arranged the purchase of Alaska from Russia, also came up with plans to offer gold for Greenland and Iceland. However, these offers were never made.

American explorers who ventured into new parts of Greenland increased U.S. interest in the territory. This even led to a discussion in 1910 by the U.S. ambassador to Denmark about the possibility of the U.S. acquiring Greenland.

In 1946, President Truman offered $100 million in gold to buy Greenland. The U.S. military saw the island as essential to America but claimed it had no value to Denmark.

The U.S. secretary of state, James Byrnes, made an official offer to buy Greenland during a meeting with Denmark's foreign minister, Gustav Rasmussen, in Washington.

Denmark turned down the offer but allowed the U.S. to expand the Thule Air Base, which had been built during World War II on Greenland’s northeast coast.

Now called Pituffik Space Base, this important facility is located 750 miles (1,200 km) north of the Arctic Circle. It has the world’s northernmost deep-water port, a 10,000-foot (3,000 m) runway, and advanced systems for missile warning and space surveillance.

(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)

(Disclaimer: The views expressed above are the author's own and do not reflect those of DNA)