EU restarts effort to clear U.S. trade pact after Trump’s Greenland reversal

A sudden reversal by the U.S. president on his earlier posture toward Greenland cleared an immediate diplomatic barrier and allowed EU bodies to formally re‑engage on a bilateral trade agreement with the United States. Brussels’ decision to restart administrative and legislative workstreams follows intensive, low‑profile diplomacy in Washington that included U.S., Danish and Greenlandic officials; participants described the talks as professional and stabilizing but produced no binding accords on defence access, mineral development or governance. Greenlandic leaders have made clear that residents remain unsettled by external manoeuvres, adding a politically sensitive overlay to any deal that touches autonomy, resources or northern security. Beyond the bilateral trade text, capitals in Europe are recalibrating strategic dependencies—most notably exposure to U.S. liquefied natural gas—which has translated a regional security spat into an energy‑policy conversation. National ministries and Brussels officials are quietly reviewing contingency frameworks, storage capacity and diversification options while industry examines operational resilience measures such as flexible contracting and logistics redundancy. On the trade front, the restart shifts the dossier from a diplomatic logjam back into technical and parliamentary phases: legal teams in Brussels and Washington are reconciling texts and officials will press for side agreements or technical concessions on labor, environment, investment screening and digital rules. Parliamentary ratification remains uncertain; majorities across divergent political groups will likely demand guarantees that safeguard local industries, public services and, increasingly, energy security. Strategically, Greenland’s geology and Arctic access now form a subtext to commercial negotiations, because control over critical minerals and northern sea lanes elevates security considerations tied to trade and investment rules. Timing is critical: with elections and geopolitical tensions on multiple fronts, any last‑minute concession could be costly for fragile political coalitions on both sides of the Atlantic. The practical effect of the restart is incremental — it reduces near‑term uncertainty for businesses and investors by removing a clear diplomatic block, but does not guarantee swift ratification or prevent further political conditionality. Observers should watch follow‑up consultations between Denmark and Greenland, proposals for transparent institutional mechanisms, and potential memoranda on investment screening and technology transfer that could determine when and how market changes take effect.