The Economist: US preparing deal offer for Greenland

The United States is reportedly preparing a proposal to present to Greenland that could significantly reshape Washington’s relationship with the Arctic island, amid renewed efforts by the Trump administration to expand its influence in the strategically important territory.

The plan under discussion would reportedly involve offering Greenland a so-called Compact of Free Association (COFA) — a framework the United States has previously used with several Pacific island nations. Such agreements allow the US military to operate freely in the signatory country and typically include economic incentives such as duty-free trade and financial assistance, according to The Economist.

American officials believe the arrangement could bring substantial economic benefits to Greenland, which has a population of about 56,000 and remains a self-governing territory within the Kingdom of Denmark. President Donald Trump has repeatedly likened the idea to a major real-estate deal, arguing that it would bring wealth and development to the island.

Danish officials, however, argue that Greenland already hosts a US military base and that existing agreements give Washington broad freedom of action. Under the current treaty framework, there are no explicit limits on the number of American troops that can be deployed on the island, although any major expansion or change in the US military presence would likely require Denmark’s consent.

According to The Economist, US officials have sought to engage directly with Greenland’s government to discuss future arrangements, but these overtures have so far been rebuffed.

The reported move comes as the Trump administration steps up efforts to increase its leverage over Greenland and weaken its ties with Denmark. The strategy is said to involve courting elements of Greenland’s independence movement while simultaneously trying to negotiate a new political and economic framework with the island — potentially bypassing Copenhagen.

Trump’s interest in Greenland is not new. He reiterated earlier this month that the United States “needs Greenland from the standpoint of national security,” sparking concern in Denmark and across Europe.

While outright annexation remains unlikely, The Economist says, European officials now view Washington’s intentions more seriously than in the past, amid signs that the administration is actively seeking to alter Greenland’s status before the end of Trump’s term.

By Sabina Mammadli