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Why would Trump want Greenland and the Panama Canal? Here’s what’s behind U.S. interest

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Estimated reading time: 5 minutes

EEUU. Donald Trump, during a long news conference on Tuesday, spoke about his interest in securing U.S. control of Greenland and the Panama Canal, and said he would not rule out the use of military force.

Below is a look at where the two places are and why Trump might want the U.S. to control them.

Where is Greenland and why would Trump want to control it?

Greenland is located to the northeast of Canada and is largely covered by the Greenland Ice Sheet. The largest island in the world, but home to only around 60,000 people, it is a semi-autonomous territory of the Kingdom of Denmark, with its own elected government.

Its location between the U.S., Russia and Europe makes it strategic for both economic and defense purposes — especially as melting sea ice has opened up new shipping routes through the Arctic.

It is also the location of the northernmost U.S. military base.

The Northwest Passage, or Northern Sea route, was first crossed in the winter months by a Russian commercial vessel several years ago, and is a shorter route linking east Asia’s major ports to Europe and the Atlantic Ocean. Western powers have already voiced concern about Russia and China using it to boost their presence in the North Atlantic. 

“The Americans have a strong interest in overseeing the activities of foreign countries in Greenland because it’s such a big security asset for foreign states, and due to that, any investment or activity, from the American point of view, may be seen as a security threat,” Frank Sejersen, associate professor at the University of Copenhagen, told CBS News on Wednesday.

Pernille Benjaminsen, a human rights lawyer in Greenland, told CBS News the ties between the territory’s semi-autonomous government and the Danish government had grown tense in recent years, and Trump could be trying to take advantage of that.

“He has noticed that there is this tense relationship between Denmark and Greenland and seen opportunities in that,” she said.

Greenland also has oil, natural gas and highly sought after mineral resources.

Those mineral resources, which include rare earth elements, “have only been lightly explored and developed,” Jose W. Fernandez, the U.S. Department of State’s undersecretary for economic growth, energy and the environment, said at a Minerals Security Partnership event in Greenland in November.

Greenland may have significant reserves of up to 31 different minerals, including lithium and graphite, both of which are needed to produce electric vehicle batteries, according to a 2023 report assessing the island’s resources. Those deposits are likely to draw the interest of Tesla CEO Elon Musk, who’s become a close adviser to Trump after providing more than $270 million last year to back his and other Republicans’ candidacies.

Currently, lithium production is dominated by Australia, Chile and China, while China produces about 65% of the world’s graphite, the report noted.

Greenland also has the potential to provide a significant amount of rare earth minerals like Neodymium, which is used to make the magnets used in electric motors, the 2023 report said.

Currently, China produces about 70% of rare earth elements.

“The world is currently too dependent on a small set of actors for mining and processing many critical minerals,” Fernandez said in November.

Demand for rare earth minerals is outstripping supply, which has kept prices high, according to the Swiss newspaper Neue Zürcher Zeitung. Still, there are significant hurdles to mining in Greenland, including environmental and cost issues.

What is the Panama Canal and why would Trump want it?

About 40% of U.S. container shipping currently travels through the Panama Canal, according to the trade publication CargoNOW. The canal serves as a shortcut between the Pacific Ocean and the Caribbean Sea and, beyond that, the Atlantic Ocean.

Trump said that the United States needs the Panama Canal for “economic security,” falsely alleging that it is being “operated by China.”

“The Panama Canal is vital to our country. It’s being operated by China. China! And we gave the Panama Canal to Panama. We didn’t give it to China, and they’ve abused it. They’ve abused that gift. It should have never been made,” Trump said.

Panama’s President Jose Raul Mulino has disputed Trump’s claims.

“There is absolutely no Chinese interference nor involvement in anything to do with the Panama Canal,” he said in late December.

Panama’s Foreign Minister Javier Martínez-Acha said Tuesday that his government hadn’t spoken formally with Trump or his team about the canal recently, but he reiterated previous comments from the country’s president that the canal would remain under Panamanian control.

“The sovereignty of our canal is not negotiable and is part of our history of struggle and an irreversible conquest,” said Martínez-Acha.

China has also denied trying to claim any control over the canal, with Foreign Ministry spokesperson Mao Ning saying in December that Beijing would “always respect Panama’s sovereignty over the Canal and recognize the Canal as a permanently neutral international waterway.”

The history of Greenland

The Kingdom of Denmark began colonizing Greenland in the early 18th century, hundreds of years after Vikings from the same distant land first arrived to set up residency. It was not until World War II that the U.S. established a presence on the island, when then-Danish Ambassador to the U.S., Henrik Kauffmann, refused to surrender to the rule of Denmark’s Nazi occupiers.

Denmark was liberated from Nazi occupation in 1945, but the U.S. did not leave its military base, Pituffik Space Base, which to this day remains the American military’s northernmost installation.

The history of the Panama Canal

The Panama Canal was built by the U.S. between 1904 and 1914. It serves as a shortcut between the Pacific Ocean and the Caribbean, dramatically shortening shipping routes from Asia to ports in the eastern U.S. 

It was first managed by the U.S. government for decades, which caused tension with Panama.

In the 1970s, the U.S. and Panama signed a treaty agreeing to the permanent neutrality of the canal. The U.S. committed to relinquishing control of the canal and did so fully in 1999. The canal is now run by the Panama Canal Authority.

cbsnews.com

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