Why Care About Denmark Putting Trump's Offer to Buy Greenland on Ice?

The real estate agent in President Trump came out last week. He made a proposition to buy Greenland from Denmark, much like President Truman attempted in 1946. Denmark's Prime Minister, Mette Fredericksen, said that Greenland is not for sale and the idea of doing so is absurd. Trump subsequently cancelled his plans to visit Denmark next month.

While it would be easy to dismiss this sales proposal as "Trump does that wildest things," there might be some rhyme and reason for Trump's move. Although Greenland is sparsely populated, Greenland is abundant in natural resources, especially in rare earth metals. These are the same rare earth metals that act as inputs for computers, smartphones, electric cars, and other electric goods. China already has such a large market share in rare earth metals, and has been mining for more in Greenland through an Australian company. Trump is assumedly trying to position himself in the rare metals market because he is anticipating a drawn-out trade war with China which he should have never started in the first place. And to think there are also copper, zinc, and iron reserves, as well (see Brookings Institution report here).

But Greenland's advantage isn't just about natural resources. Its geographic position combined with the melting polar ice caps allows for maritime travel to be shorter through its shipping lanes more quickly than the Panama or Suez Canals, but that might not transpire for about another century. China will continue to have geopolitical interests in establishing a presence in Greenland. Russia is also interested in Greenland as the major world powers vie for power in the Arctic region.

There are economic and national security interests for the United States to purchase Greenland from Denmark. Something tells me that Denmark is more aware of Greenland's worth than it is letting on. It does signal how a large island that historically was considered all but worthless is now playing an increasingly important role in international politics. While we will not see a purchase of Greenland anytime soon, this is not the last we will hear about Greenland's role in international affairs.