US President-elect Donald Trump has revived a controversial proposal he had put forward in 2019, which is to buy Greenland, the largest island in the world that enjoys self-rule under Danish sovereignty.
While the proposal was met with complete rejection by Denmark when it was first raised, Trump reopened the file with a threat to impose “very high trade tariffs” on Denmark if it did not accept the deal, according to a Bloomberg report.
The geopolitical importance of Greenland
According to the agency, Greenland is not only an island with a vast area larger than Mexico and Saudi Arabia, but it is also a strategic gateway located between the North Atlantic Ocean and North America.
The island is a center of global interests due to its vast reserves of minerals and fossil fuels. It also hosts the American Thule Air Base, which is considered the most important in the far north for monitoring missile threats and tracking space objects.
Speaking about the importance of Greenland, Trump noted that it is “essential to America’s national security.” During his first term, he previously described it as a “big real estate deal” that could ease Denmark’s financial burdens.
Economic dimensions of the deal
According to a Bloomberg report, Greenland’s GDP is $3.2 billion (according to World Bank statistics for 2021), and Denmark supports it annually with about $600 million. Despite this, the island faces major economic challenges, relying heavily on fishing and primary industries.
Although Greenland is “not for sale”, any estimate of its price may be based on looking at these numbers.
For comparison, the cost of purchasing Alaska from Russia in 1867 was $7.2 million, the equivalent of about $150 million today.
Legal and political obstacles
Legally, Professor Rasmus Leander Nielsen of the University of Greenland stressed to Bloomberg that the 2009 autonomy law prohibits the sale of the island, as it recognizes Greenlanders as an “independent people.” He explained that any purchase would require the island’s independence first, something still under discussion among local politicians.
In this context, Greenland’s Prime Minister, Moti Borup Egede, said: “Greenland will never be for sale.” However, he added that the island is open to trade cooperation with the world, especially in the field of vital minerals.
This position reflects growing interest in Greenland’s economic and political independence, as its government last year issued a defense and security policy document calling for strengthening ties with North America.
Historical background to land purchases
Historically, land purchases have not been unusual for the United States. It purchased Louisiana from France for $15 million in 1803, and Alaska from Russia for $7.2 million. In fact, Denmark itself sold what is now the US Virgin Islands in 1917.
However, a Bloomberg report noted that the current market for sovereign land is “dry,” according to an academic study.
If Trump insists on moving forward with this proposal, it will not be simple. Under the US Constitution, any land purchase requires Congress to approve its financing. But Trump has previously shown a willingness to bypass Congress on similar issues, such as when he used the Pentagon budget to build the border wall with Mexico.
For his part, Professor Joseph Blucher of Duke University Law School expressed doubts about the success of such deals in the modern era, writing that “the market for sovereign land appears to have dried up.”
While Trump believes that purchasing Greenland could enhance national security and achieve strategic gains, legal and diplomatic obstacles make this idea difficult to achieve.
