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Trump Administration Explores Compact of Free Association with Greenland

The U.S. seeks to strengthen Arctic influence and access Greenland's resources, but faces Danish opposition and Greenlandic skepticism.

People protest against the American pressure taking place against Greenland and Denmark, in front of the American Embassy in Copenhagen on March 29, 2025.
A view shows the city of Nuuk, Greenland, March 28, 2025. REUTERS/Leonhard Foeger/File Photo
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Overview

  • The Trump administration is formulating a Compact of Free Association (COFA) proposal to bring Greenland into closer alignment with the U.S., offering economic and military benefits in exchange for basing rights and strategic access.
  • Greenland would need to achieve independence from Denmark for a COFA agreement to proceed, a significant legal and political hurdle given Denmark's objections and Greenlandic public sentiment.
  • Greenland's strategic location and untapped mineral reserves, including rare earths critical for high-tech and defense industries, are key drivers of U.S. interest in the island.
  • Greenlandic leaders and the public largely support independence but remain wary of ceding autonomy to the U.S., with polls showing resistance to U.S. control or influence.
  • The discussions are part of broader U.S. efforts to counter China and Russia's growing presence in the Arctic, emphasizing the region's geopolitical and economic importance.