Explainer: Trump's Scramble For Greenland And Panama Canal (X image @realDonald)
Donald Trump made tumultuous and controversial remarks during press conference held at his Mar-a-Lago estate. One statement that caused huge commotion was his remarks on Greenland and Panama Canal. He expressed his strong desire to purchase Greenland, an autonomous territory of Denmark, and claimed Panama Canal to be of US. He also added that he couldn’t rule out using military or economic pressure to seize Greenland and the Panama Canal.
Soon after the controversial comment, Donald Trump JR. made a whirlwind visit to Greenland. Denmark hit back with a sharp statement that Greenland is not for sale. Trump Jr. told the local media that he was in Greenland for a “very long personal day trip”.
Trump made the statement about buying Greenland during his Presidential campaign. Last month, on his social media platform Truth Social, he said that, “For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity”.
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Ahead of his son’s visit, Trump wrote on Truth Social that “Greenland is an incredible place, and the people will benefit tremendously if, and when, it becomes part of our Nation” and that “This is a deal that must happen”. Trump claims that Washington needs both Greenland and the Panama Canal for “economic security”. He said US will protect Greenland and “cherish it, from a very vicious outside World. MAKE GREENLAND GREAT AGAIN!”.
Let’s have a look at US’ relation between the two and the reason for Trump’s urgent interest in the region.
Greenland – US :
Greenland has caught the attention of world powers. The island has became increasingly significant on geopolitical scale as melting ice in the Arctic Circle has opened new North Atlantic shipping lanes. This has grabbed the attention of US, China, and Russia.
According to Arctic Council, the shipping rate through Arctic has increased 37 percent. The Northwest Passage, a shipping lane that connects the Atlantic and Pacific, also passes by Greenland. It is also part of the Greenland-Iceland-UK gap. For Russia to travel from Arctic to Atlantic, it should pass through the said checkpoint.
The island is a treasure house of untapped mineral resources, including coal, zinc, copper, iron ore, diamonds and oil, though only small portions of the island have been explored, majorly due to its harsh conditions as it’s predominantly covered by ice and glaciers.
Notably, Trump was not the first US President to make call for buying the island. During the beginning of Cold War, in 1946, President Harry S. Truman (Democrat) at the forefront, offered to buy Greenland for the price of $100 million USD in gold based on strong military and geo-political interests. But the call was rejected by Denmark.
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However, both the countries reached an agreement. As part of the agreement, Washington was able to establish Thule Air Base in the northernmost part of Greenland in 1951. In 1971, Denmark sold the Danish West Indies (now the US Virgin Islands) to the USA for $25 million USD.
According to 2009 Self-Government Act, Greenland became self-governed. A change in its ownership or legal status would require an amendment to the Danish constitution, as per Reuters. This means that Denmark cannot “sell” Greenland.
Panama Canal – US:
Trump also made comments on the Panama Canal. Last month he demanded that the “Panama Canal be returned to us, in full, quickly and without question,” unless the Panamanian government met its “moral and legal” requirements”. He also reiterated his complain that Panama charges the U.S. “highly unfair” fees for ships passing through the canal.
The construction of Panama Canal, a manmade pathway to connect the Atlantic to the Pacific, was begun by France in 1881, but if failed. The construction was completed by US between 1904 and 1914. Washington maintained control of the territory surrounding it for decades, before transferring it to Panama starting in the 1970s. In 1977, the Torrijos-Carter Treaties was signed under the rule of President Jimmy Carter. These treaties guaranteed the canal’s neutrality and allowed US intervention to defend it if necessary.
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Refuting Trump’s demand, Panamanian President José Raúl Mulino said that “Every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be”. On his social media platform Truth Social, Trump said “We’ll see about that,” and posted a photo of the U.S. flag over the canal with the text “Welcome to the United States Canal!”.
When he was asked that if he could assure the world that he would not use military or economic coercion as he tried to gain control of the Panama Canal and Denmark. he said “No, I can’t assure you of either of those two… We need them for economic security… The Panama Canal was built for our military”.
Why Greenland and Panama Canal:
The Arctic region has became a key stage of geopolitical competitions. Trump’s scramble to have an authoritative grip on the regions stem from the increasing presence of US’ arch nemesis in the Arctic region as key players- China and Russia.
“I’m talking about protecting the free world. You look at it, you don’t even need binoculars. You look outside, you have Chinese ships all over the place. You have Russian ships all over the place. We’re not letting that happen”.
One of Trump’s major concerns in the region is the growing influence of China in the South America. China’s state firms are major investors in Latin America’s energy, infrastructure, and space industries. According to Council on Foreign Relations, China has surpassed the United States as South America’s largest trading partner. Beijing has also expanded its cultural, diplomatic, and military presence throughout the region. For instance, Beijing has celebrated the opening of a new megaport in Peru as part of its global Belt and Road Initiative (BRI).
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Since gaining observer status on the Arctic Council in 2013 China has massively expanded its footprints in Arctic and has begun to work closely with Russia, which was widely perceived as an attempt to be seen as an Arctic power.
Russia has also invested its interest in the Artic waters as changing climate has turned the global maritime focus on it. The Northern Sea Rout (NSR) or the Artic Polar Sea Route has became Moscow’s central plan in enhancing its global trade routes and reduce reliance on chokepoints like the Suez Canal and the Strait of Malacca. The route offers significant economic gains for the Russia as it aid greatly in its logistics capabilities and global trade position.
The Arctic is transforming thanks to the dangerously warming climate. The consequent melting of ice has started to transform the region, making it an evolving shipping landscape. This has set stage for a broader strategic race between the West and countries like Russia and China. West is on close watch, as the new evolving maritime path will open up endless doors on global trade patterns and international relations. With the increased presence of Russia and China in the region, US appears to be on the edge, which explains Trump’s claims of gaining sovereignty over Greenland and Panama Canal.
