1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,520 --> 00:00:10,200 Speaker 2: The US officials are rushing to come up with options 3 00:00:10,200 --> 00:00:12,959 Speaker 2: for business deals and other ways to step up links 4 00:00:13,000 --> 00:00:16,640 Speaker 2: to Greenland after President Trump's renewed demand to take over 5 00:00:16,680 --> 00:00:19,600 Speaker 2: the island. The Foreign ministers of Denmark and Greenland are 6 00:00:19,680 --> 00:00:22,560 Speaker 2: due to meet with US Section of State Marco Rubio 7 00:00:22,640 --> 00:00:26,600 Speaker 2: in Washington next week, joining US now as madss fist Friedrichson, 8 00:00:26,680 --> 00:00:32,080 Speaker 2: who is executive director for the Arctic Economic Council. Mad's 9 00:00:32,159 --> 00:00:34,159 Speaker 2: good to have you on the program today. Thank you 10 00:00:34,240 --> 00:00:38,080 Speaker 2: for your time, because we'd like to understand what the 11 00:00:38,159 --> 00:00:42,680 Speaker 2: view of business is in Greenland about the Trump administration's 12 00:00:42,760 --> 00:00:47,360 Speaker 2: determination that it wants Greenland to be part of the US. 13 00:00:47,960 --> 00:00:51,680 Speaker 1: Yeah, nice to be here on call. It's very uncertain 14 00:00:51,720 --> 00:00:55,560 Speaker 1: times and all you can say that, and this doesn't 15 00:00:55,560 --> 00:00:58,440 Speaker 1: only go for for Greenland, but across the Arctic region. 16 00:00:58,480 --> 00:01:01,800 Speaker 1: There's a lot of uncertainty at them, and uncertainty that's 17 00:01:01,840 --> 00:01:05,800 Speaker 1: poison for any companies. I just spoke with a group 18 00:01:05,840 --> 00:01:08,440 Speaker 1: of companies in Greenland the other day and they said 19 00:01:08,480 --> 00:01:11,399 Speaker 1: that everything is put on hold at the moment. They're 20 00:01:11,400 --> 00:01:15,680 Speaker 1: not making any decisions until there's small clarification about their future. 21 00:01:16,040 --> 00:01:18,920 Speaker 3: What is the I suppose, how does that affect things 22 00:01:18,959 --> 00:01:22,120 Speaker 3: like investment, business planning, How do the day to day 23 00:01:22,160 --> 00:01:26,400 Speaker 3: operations of these companies I suppose move forward when there's 24 00:01:26,600 --> 00:01:28,560 Speaker 3: such geopolitical uncertainty. 25 00:01:28,880 --> 00:01:31,080 Speaker 1: That's a good question, and I think it's important to 26 00:01:31,160 --> 00:01:34,480 Speaker 1: remember that, you know, Greenland is still home to fifty 27 00:01:34,480 --> 00:01:36,600 Speaker 1: six thousand people that wakes up every day and go 28 00:01:36,680 --> 00:01:40,600 Speaker 1: to work, so yes, they will continue life. Similar to 29 00:01:41,240 --> 00:01:44,800 Speaker 1: the COVID pandemic being a major disruptor for companies, they 30 00:01:44,840 --> 00:01:48,680 Speaker 1: were still operating and they will still operate. There are still, 31 00:01:49,120 --> 00:01:52,559 Speaker 1: you know, uncertainties around for example, law scale investments. There's 32 00:01:52,640 --> 00:01:58,160 Speaker 1: certain uncertainties around you know where, also defense investments for example. 33 00:01:58,360 --> 00:02:01,040 Speaker 1: So right now it's just very dificult to plan ahead. 34 00:02:01,160 --> 00:02:03,760 Speaker 1: The day to day operations is still the same. You know, 35 00:02:04,840 --> 00:02:08,480 Speaker 1: ninety seven percent of Greenland's export is from fisheries. Those 36 00:02:09,240 --> 00:02:13,640 Speaker 1: fishing vessels are still out there fishing. What is interesting though, 37 00:02:13,720 --> 00:02:16,280 Speaker 1: is the US market is not a particularly big market. 38 00:02:16,320 --> 00:02:21,120 Speaker 1: It's actually a very very tiny market for the Greenlandic economy. Europe, China, 39 00:02:21,960 --> 00:02:26,360 Speaker 1: even Canada is much bigger than the US. So some people, 40 00:02:26,960 --> 00:02:28,720 Speaker 1: not all, but some people do see it as an 41 00:02:28,720 --> 00:02:31,520 Speaker 1: opportunity though, to expand into new markets in the US. 42 00:02:31,760 --> 00:02:34,520 Speaker 2: That's interesting given the kind of comments not ruling out 43 00:02:34,520 --> 00:02:38,520 Speaker 2: the use of military force. Also, we've had further comments 44 00:02:38,680 --> 00:02:41,919 Speaker 2: about the idea of Greenland being bought by the US 45 00:02:42,120 --> 00:02:46,560 Speaker 2: or quote, some sort of financial arrangement, as the US 46 00:02:46,880 --> 00:02:51,880 Speaker 2: Republican House Speaker Mike Johnson suggested only yesterday. Do you 47 00:02:51,960 --> 00:02:56,280 Speaker 2: get any sense that Greenlandic businesses might accept some kind 48 00:02:56,320 --> 00:02:58,200 Speaker 2: of financial arrangement with the US. 49 00:02:59,480 --> 00:03:03,239 Speaker 1: I don't think so. I mean they, as the Greenlanders 50 00:03:03,240 --> 00:03:06,080 Speaker 1: have been saying since twenty nineteen when we heard about 51 00:03:06,080 --> 00:03:08,240 Speaker 1: this the first time, the Queen and the government and 52 00:03:08,400 --> 00:03:11,680 Speaker 1: businesses said, you know, Greenland is not for sale, but 53 00:03:11,760 --> 00:03:15,480 Speaker 1: it's open for business. There is a strong sense, and 54 00:03:15,520 --> 00:03:17,760 Speaker 1: this is all the statements built from the private sector 55 00:03:17,800 --> 00:03:20,440 Speaker 1: and from the public sector, that Greenland belongs to its people. 56 00:03:20,880 --> 00:03:25,480 Speaker 1: So this idea about a large real estate deal, as 57 00:03:25,480 --> 00:03:28,200 Speaker 1: the President Trump called it in twenty nineteen, that's not 58 00:03:28,280 --> 00:03:31,639 Speaker 1: of any interest to the businesses. They want to decide 59 00:03:31,639 --> 00:03:36,040 Speaker 1: the future themselves. And that's also what Denmark has stated 60 00:03:36,080 --> 00:03:38,360 Speaker 1: again and again on what Greenland has stated again and again. 61 00:03:38,920 --> 00:03:41,680 Speaker 3: There have been reports of an influenced campaign by the 62 00:03:41,800 --> 00:03:46,200 Speaker 3: US in Greenland. Do you hear about that from the 63 00:03:46,240 --> 00:03:49,640 Speaker 3: businesses that you work with or is there a sense 64 00:03:49,640 --> 00:03:51,560 Speaker 3: that those efforts are continuing. 65 00:03:52,000 --> 00:03:54,360 Speaker 1: Very It's a good question, and it goes back to 66 00:03:54,920 --> 00:03:57,080 Speaker 1: let me just zoom out briefly for the broad Arctic. 67 00:03:57,200 --> 00:04:01,120 Speaker 1: There are HYPERD threats across the Arctic. You know, there's 68 00:04:01,320 --> 00:04:06,000 Speaker 1: talks about Chinese, Russia and etc. Other outside nations influencing 69 00:04:06,040 --> 00:04:08,800 Speaker 1: and wanting to get into the Arctic. The benefit of 70 00:04:08,800 --> 00:04:12,400 Speaker 1: the Arctic is that we are quite small communities across 71 00:04:12,400 --> 00:04:14,840 Speaker 1: the whole region. There are four million people living there, 72 00:04:14,840 --> 00:04:18,240 Speaker 1: ten percent of its indigenous, which means it's very easy 73 00:04:18,320 --> 00:04:21,880 Speaker 1: to see if suddenly someone from outside is trying to 74 00:04:21,920 --> 00:04:25,640 Speaker 1: influence someone. We have seen, however, we have seen some 75 00:04:25,720 --> 00:04:31,840 Speaker 1: attempts on digital manipulation or online manipulation of people. We 76 00:04:31,880 --> 00:04:35,159 Speaker 1: saw some AI videos being spread a few years ago. 77 00:04:35,320 --> 00:04:38,560 Speaker 1: We have seen some strains posts. We saw there was 78 00:04:38,600 --> 00:04:43,599 Speaker 1: a fake document being shared that was supposed to look 79 00:04:43,640 --> 00:04:46,960 Speaker 1: like it came from the Greenlandic government. It was completely 80 00:04:47,000 --> 00:04:48,839 Speaker 1: made up. So we have seen some attempts, but we 81 00:04:48,880 --> 00:04:50,760 Speaker 1: don't know what countries are behind it. 82 00:04:50,880 --> 00:04:54,280 Speaker 2: Interesting, what is your view then, of what you want 83 00:04:54,320 --> 00:04:57,600 Speaker 2: to see next and what businesses want to see next. 84 00:04:57,640 --> 00:05:01,840 Speaker 2: There is this foreign minister's meeting that's happening next week 85 00:05:02,040 --> 00:05:05,360 Speaker 2: that surely must be quite important. How do you think 86 00:05:05,400 --> 00:05:08,640 Speaker 2: that the Danish government and indeed the EU, what should 87 00:05:08,680 --> 00:05:10,080 Speaker 2: they be doing next? 88 00:05:10,839 --> 00:05:13,520 Speaker 1: So first, I mean, yeah, we have to turn off 89 00:05:13,520 --> 00:05:15,880 Speaker 1: this fire that is on at the moment, and we 90 00:05:15,960 --> 00:05:18,560 Speaker 1: also need to remain calm and not to panic. And 91 00:05:18,600 --> 00:05:21,280 Speaker 1: I think this is quite important right now that we 92 00:05:21,880 --> 00:05:24,320 Speaker 1: still engage in the dialogue and we continue to look 93 00:05:24,360 --> 00:05:27,920 Speaker 1: further ahead. We have over the past years already seen 94 00:05:28,000 --> 00:05:33,000 Speaker 1: massive investments coming from is particularly Denmark has invested massively 95 00:05:33,440 --> 00:05:37,440 Speaker 1: in for example, subse fiber optic cables, deep sea ports, 96 00:05:37,640 --> 00:05:41,040 Speaker 1: expansion of ports, et cetera, expansion of one ways. So 97 00:05:41,080 --> 00:05:44,680 Speaker 1: in the past few years, Denmark has invested massively in Greenland. 98 00:05:45,000 --> 00:05:48,679 Speaker 1: We are also seeing growing interest from the European Union 99 00:05:48,760 --> 00:05:51,599 Speaker 1: and I think this will continue. The European Union will 100 00:05:51,680 --> 00:05:55,200 Speaker 1: update their Arctic policy in the coming months, and I'm 101 00:05:55,200 --> 00:05:58,200 Speaker 1: sure security will play a role there. And also this 102 00:05:58,279 --> 00:06:01,640 Speaker 1: whole idea about do use, and I think also we 103 00:06:01,680 --> 00:06:04,080 Speaker 1: will at least the companies are asking for this. Okay, 104 00:06:04,200 --> 00:06:07,479 Speaker 1: if you are investing more in defense, let's try to 105 00:06:07,520 --> 00:06:10,800 Speaker 1: make sure it also benefit the communities there. So whatever 106 00:06:10,880 --> 00:06:12,880 Speaker 1: we do in the Arctic, it has to have at 107 00:06:13,000 --> 00:06:15,320 Speaker 1: least the dual use, quite often also a triple use. 108 00:06:16,000 --> 00:06:21,440 Speaker 1: The Greenlandic economy is still massively challenged. There's fifty six 109 00:06:21,480 --> 00:06:24,279 Speaker 1: thousand people. They expect to be forty six thousand people 110 00:06:24,279 --> 00:06:28,400 Speaker 1: by twenty to fifty Gdpeak growth is rather low, and 111 00:06:28,440 --> 00:06:32,280 Speaker 1: there is some structural challenges around the skilled workforce. So 112 00:06:32,800 --> 00:06:35,000 Speaker 1: Greenland has a lot of challenges when it comes to 113 00:06:35,040 --> 00:06:39,120 Speaker 1: be an attractive investment environment, not only because of US interest. 114 00:06:39,520 --> 00:06:43,040 Speaker 1: So we have to deal with that long term. 115 00:06:43,160 --> 00:06:46,240 Speaker 2: Our last thought, if you would, what I hear and 116 00:06:46,320 --> 00:06:49,160 Speaker 2: read about Greenland is that there has been an attempt 117 00:06:49,240 --> 00:06:52,040 Speaker 2: to be open with the US in terms of trying 118 00:06:52,040 --> 00:06:55,800 Speaker 2: to get business deals. Why do you think there hasn't 119 00:06:55,839 --> 00:06:59,800 Speaker 2: been more interest and more advancement, Let's say in my 120 00:07:00,920 --> 00:07:05,560 Speaker 2: in other resources, we will know that Greenland is rich 121 00:07:05,600 --> 00:07:08,839 Speaker 2: in mining resources, but actually getting them out of the ground, 122 00:07:08,839 --> 00:07:13,560 Speaker 2: there's not that much going on to do that. With 123 00:07:13,680 --> 00:07:16,480 Speaker 2: that openness, what do you think has been the hindrance 124 00:07:16,520 --> 00:07:19,760 Speaker 2: so far to doing more business between the US and Greenland? 125 00:07:20,640 --> 00:07:23,840 Speaker 1: And that's exactly what the companies are asking themselves as well. 126 00:07:23,960 --> 00:07:27,520 Speaker 1: So there's currently one active mind one open mining Greenland. 127 00:07:28,400 --> 00:07:32,680 Speaker 1: There are more than around fifty one hundred minds that 128 00:07:32,760 --> 00:07:36,080 Speaker 1: could open if they just get an investor. We have 129 00:07:36,280 --> 00:07:39,320 Speaker 1: seen some mining activity from the US in the south 130 00:07:39,360 --> 00:07:41,840 Speaker 1: of Greenland the past year, but that's also the first 131 00:07:41,880 --> 00:07:44,880 Speaker 1: time that's been so much activity. I think a lot 132 00:07:44,920 --> 00:07:47,240 Speaker 1: of it comes down that this is a political wish. 133 00:07:47,360 --> 00:07:50,680 Speaker 1: I don't believe that the business society of community in 134 00:07:51,320 --> 00:07:55,720 Speaker 1: the US has this interesting Greenland. This is from the 135 00:07:55,720 --> 00:07:59,600 Speaker 1: top of the political level. And that also reflected that 136 00:07:59,600 --> 00:08:01,480 Speaker 1: it is very hard to tell companies where to go 137 00:08:01,520 --> 00:08:05,760 Speaker 1: and invest if there is not a good investment case. Generally, 138 00:08:06,200 --> 00:08:10,320 Speaker 1: Greenland is challenged by lack of infrastructure, small populations, so 139 00:08:10,400 --> 00:08:12,680 Speaker 1: economy of scale is a challenge, but it does have 140 00:08:12,720 --> 00:08:16,240 Speaker 1: opportunities within for example tourism, and we have seen a 141 00:08:16,400 --> 00:08:20,520 Speaker 1: few US investors, for example, investing in hotels in Greenland, 142 00:08:20,520 --> 00:08:22,600 Speaker 1: but it is at a very very small level. But 143 00:08:22,960 --> 00:08:24,960 Speaker 1: this is not only about the US not investing too 144 00:08:25,000 --> 00:08:28,600 Speaker 1: much in Greenland. This is international companies and investors around 145 00:08:28,600 --> 00:08:31,680 Speaker 1: the world. A lot of people are talking about Greenland 146 00:08:31,720 --> 00:08:33,920 Speaker 1: not too many people are investing in Greenland, and this 147 00:08:34,080 --> 00:08:35,880 Speaker 1: is not helping what is happening at the moment.